Karnataka’s Free Electricity Program Slows Rooftop Solar Rollout Under PM Surya Ghar
Only 6,519 installations against 600,000 registrations so far
April 10, 2025
Follow Mercom India on WhatsApp for exclusive updates on clean energy news and insights
The implementation of the PM Surya Ghar: Muft Bijli Yojana in Karnataka has been slow to take off. Despite a sharp rise in registrations, only 6,519 rooftop solar systems with a total capacity of 24.95 MW have been installed so far.
The conversion rate from registrations to installations has been extremely poor. Across five distribution companies (DISCOMs), the total number of registrations is 615,386, while the number of installations is a mere 6,519, corresponding to 1.1%.
The major reason for this slow pace is the lack of incentive for households already benefiting from the state government’s free electricity program, Gruha Jyothi. The program provides up to 200 units of free electricity per month, sufficient for most households.
Procedural delays, especially in vendor selection and inspections, have further slowed rooftop solar adoption.
Karnataka has lagged far behind states such as Gujarat, which recorded 281,769 installations, comprising 46% of the national total. Maharashtra, with over 120,000 installations, Kerala and Uttar Pradesh, with around 51,000 installations each, have outpaced Karnataka significantly.
Mercom recently reported that free electricity programs, such as the one in Karnataka, have hindered the adoption of rooftop solar under the PM Surya Ghar initiative. At least eight states offer free electricity, ranging from 100 units a month to 300 units.
According to the data, the registration numbers reached 615,386 in February. BESCOM (Bengaluru) had the highest number of registrations at 171,844 as of February 11, while installations were considerably low at 2,898. This development suggests that while interest in the project remains high, it does not necessarily translate into widespread adoption.
Lack of Awareness
A crucial concern is the slow conversion of registrations into actual applications and installations. Many consumers see little benefit in investing in solar panels when their electricity bills are covered under the state’s existing subsidy program.
Raghu. T, Deputy General Manager (DGM) (Projects), BESCOM, told Mercom, “With many households already receiving free power, there is little financial incentive for them to invest in solar energy, resulting in a lower conversion rate from registrations to installations. This, combined with the general lack of awareness about PM Surya Ghar, has slowed the adoption of rooftop solar in the state.”
The slow pace of vendor selection is also a significant barrier, as applicants cannot install the solar panels without an approved vendor. Despite the rise in feasibility clearances, vendor selection remains slow. Fewer than 20,000 vendors are assigned to execute installations.
Subsidy disbursements have also been slow. The total subsidy released so far amounts to ₹382.8 million (~$4.59 million), with BESCOM leading at ₹173.8 million (~$2.09 million).
“For some households, the problem is even the financial investment required for the installations. The overall investment for the rooftop solar system ranges from ₹150,000 (~$1,800) to ₹300,000 (~$3,600), depending on the system capacity. Even after receiving the subsidy, they do not want to bear the remaining installation costs. This poses another hurdle,” Raghu said.
As of January 27, 2025, the PM Surya Ghar: Muft Bijli Yojana program has completed one year of significant progress in promoting rooftop solar, with 846,000 households having installed rooftop solar systems under the program nationwide.