In the latest episode of the State of the Economy Podcast, Vikram V, Vice President and Co-Group Head (Corporate Ratings), ICRA,discusses the PM Surya Ghari Yojana, a scheme aimed at revitalising the rooftop solar sector in India. Vikram explains that the scheme offers subsidies to reduce the capital cost of setting up rooftop solar plants and electricity bills for consumers. The subsidy is aimed at an estimated 1 crore households with monthly electricity consumption below 300 units. 

Vikram highlights the key features of the scheme, including increased subsidy components, easier access to financing with low-interest rates, and defined timelines for approval processes. He emphasises the need for awareness about the scheme and the availability of qualified vendors to facilitate its implementation. 

The discussion also touches upon the challenges faced by the rooftop solar sector, such as low awareness, lack of qualified vendors, and complex approval processes. Vikram suggests that the success of the scheme depends on the cooperation of state governments and distribution companies (DISCOMS) in promoting and implementing it effectively. 

Regarding the scheme’s impact on the industry, Vikram predicts a significant demand for domestic solar module manufacturers, creating opportunities for growth in the sector. He emphasises the importance of state-level monitoring and promotion to ensure the scheme’s success across different regions. 

Vikram stresses the need for sustained awareness efforts and tailored approaches for different states to maximise the scheme’s potential. He believes that with effective implementation and support, the PM Surya Ghari Yojana can drive substantial growth in the rooftop solar sector and contribute to India’s renewable energy goals. 

(Host: Rishi Ranjan Kala, Producers: Anjana PV & Siddharth Mathew Cherian)