To encourage the widespread adoption of rooftop solar, the Ministry of New and Renewable Energy (MNRE) has disbursed ₹9.08 billion (~$108.8 million) as of November 31, 2023, as incentives to distribution companies (DISCOMs) under the Rooftop Solar Program Phase-II.

In a written reply to the Rajya Sabha, the Union Minister for Power and New & Renewable Energy, R.K. Singh, informed the incentives were disbursed to support various tasks, from project assessment and implementation to grid connectivity and capacity building by DISCOMs.

The Minister also said that so far, the country has successfully installed 2.65 GW of rooftop solar capacity in the residential segment against the 3.57 GW assigned to various implementing agencies.

Singh said the MNRE is actively implementing the Rooftop Solar Program Phase-II, which was recently extended until March 31, 2026, providing central financial assistance (CFA) to support installation in the residential segment.

The DISCOMs are designated as implementing agencies for the program. While concerns have been raised about potential revenue loss, the DISCOMs recognize the additional benefits of rooftop solar, such as avoiding costs related to generation, transmission, and distribution losses, as well as meeting renewable purchase obligations.

To promote rooftop solar installations further, the Power Ministry has issued a gazette notification specifying the minimum share of consumption of non-fossil sources by designated consumers.

The Minister said that DISCOMs are incentivized to boost rooftop solar installations through achievement-linked incentives tied to the incremental rooftop solar capacity added in their operational areas under the rooftop solar program.

Several states and union territories have been conducting extensive information, education, and communication campaigns to promote rooftop solar installations in their respective areas.

The National Portal for Rooftop Solar has also introduced a grievance redressal mechanism, allowing consumers to submit requests at different stages of the application process to make any changes or modifications.

The portal has received 15,942 requests, with 15,053 of them successfully resolved, Singh informed.

Mercom recently reported how residential buildings and housing complexes are adopting rooftop solar solutions and transitioning towards clean energy in major Indian cities. The enticing potential for cost savings and incentives primarily drives this transition.

Notably, the residential segment dominated the rooftop solar installations during the third quarter of 2023, accounting for 43% of the total installations in the quarter, as highlighted in Mercom India Research’s Q3 2023 Mercom India Rooftop Solar Market Report.