Rooftop Solar Vendors Complain of Subsidy Delays in PM Surya Ghar Program

Transport Minister Nitin Gadkari flags National Portal issues to Pralhad Joshi

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The PM Surya Ghar Program, which aims to install 10 million rooftop solar projects across India, continues to grapple with challenges ranging from subsidy disbursements to incomplete information on the Jan Samarth Portal used for processing loans.

Glitches have plagued the PM Surya Ghar National Portal for the past two months. With an outlay of ₹750 billion (~$9.04 billion), the program aims to increase residential rooftop solar capacity and empower households to generate electricity until 2026-27, but the sputtering rollout has cast a shadow on the target.

In a letter addressed to the Ministry of New & Renewable Energy (MNRE), Renewable Energy Association of Rajasthan (REAR) President Ajay Yadav said, “Not even a single subsidy payment for projects installed after mid-February has been disbursed.” Subsidies under the rooftop solar program have been reportedly delayed by over six months.

Hrishikesh Agarwal, a vendor from Rajasthan, said subsidies have been pending since March, but “some customers started receiving subsidies in June.”

The program provides a subsidy of ₹30,000 (~$361)/kW for rooftop solar systems up to 2 kW for applications submitted after February 13, 2024. An additional ₹18,000 (~$217)/kW will be available for systems of over 2 kW and up to 3 kW capacity. The total subsidy for projects exceeding 3 kW will be capped at ₹78,000 (~$939). 

Adding to the woes are serious security concerns. REAR reported instances where consumer numbers could be registered or linked to any mobile number without proper one-time password (OTP) verification. In one alarming case, the system allowed login using any 6-digit number instead of an OTP for nearly 24 hours on June 20th and 21st.

Other vendors interviewed by Mercom have also corroborated these issues and raised additional concerns, particularly regarding the Jan Samarth Portal, which is integrated with the National Portal for loan processing.

An installer from Andhra Pradesh reported discrepancies between the banks listed on the National Portal and those available on the Jan Samarth Portal. “We can find only  Union Bank, Canara Bank, and a few others. We can’t even see SBI there,” the installer said, suggesting that this inconsistency could confuse and deter potential customers.

The challenges extend beyond portal issues. Vendors report difficulties procuring non-DCR (Domestic Content Requirement) panels, with distributors favoring large bulk orders. This has led to supply constraints for smaller installations, which predominantly require mono-facial panels.

Recently, the MNRE released a framework for the enlistment of solar photovoltaic modules and inverters under the PM-Surya Ghar: Muft Bijli Yojana to assist consumers in making informed choices when selecting high-efficiency products with better warranties for their rooftop solar installations.

Meanwhile, feasibility approvals, a step in the installation process, are facing significant delays in some regions. In Guntur, Andhra Pradesh, approvals take up to a month, far exceeding the expected seven to ten-day timeline. Some distribution companies reportedly ask consumers to apply in person, contradicting the National Portal guidelines.

In response to these mounting issues, Minister of Road Transport and Highways Nitin Gadkari asked Minister of New and Renewable Energy Pralhad Joshi to “restore the normal function of the said portal,” according to a letter seen by Mercom.

The letter said numerous technical issues are plaguing the beneficiaries of this program. “This is reportedly happening under the pretext of upgradation and creating hurdles” in the program’s implementation.

Data revealed during a June webinar by REC highlighted the stark disparity in the program’s progress between states. While Gujarat had achieved an installation-to-application ratio of 19.45%, Rajasthan lagged at a mere 1.75% despite having fewer applications than Gujarat.

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