Uttar Pradesh, India’s largest state, has demonstrated significant potential for solar adoption. With ample sunshine for most of the year and government programs promoting clean energy usage, the state is emerging as a hub for solar installations, particularly in the residential segment.

The state ranked among the top states for rooftop solar installations, as per Mercom India’s Q4 & Annual 2024 India Rooftop Solar Market Report.

In 2024, the majority of capacity additions came from the residential segment under the PM Surya Ghar program, accounting for 88.2% of the installations during the period.

The state has been actively promoting the adoption of rooftop solar systems in government, semi-government, and other institutional buildings.

Raman Bhatia, the founder of Servotech Renewable Power Systems, said, “National initiatives such as the National Solar Mission and PM-KUSUM are supporting the state and encouraging solar adoption in various sectors, including agriculture, which aligns well with Uttar Pradesh’s agrarian economy.”

Ambitious Target

Installers and project developers in the state anticipate installations to grow in the coming years.

“The state has set a very ambitious target to achieve by 2027. To promote the adoption of solar energy, the Uttar Pradesh New and Renewable Energy Development Agency employs a range of strategies to promote solar energy, including workshops, radio jingles, and social media. This has helped the state increase awareness,” said Gautam Mohanka, the CEO of Gautam Solar.

“The plan also envisions developing 16 Solar Cities, with Ayodhya as a model city where 1.35 million houses will be equipped with rooftop solar systems during the policy period, solidifying Uttar Pradesh’s commitment to a sustainable energy future.”

Installers also point out that the market has responded positively to the idea of adopting solar energy.

There is a noticeable increase in environmental consciousness, with many individuals and businesses striving to contribute to achieving net-zero emissions. Solar energy is seen as a practical solution to achieve this goal. The numerous benefits and incentives for solar installations make it an attractive option for many,” said Bhatia.

They recognize that switching to solar is not only cost-effective in the long run but also aligns with their values of sustainability, he added.

Policy support and government initiatives to promote renewable energy have played a crucial role in driving solar adoption.

“Earlier, there was limited information about how solar energy worked. However, we have seen a encouraging change in the residential solar market. People consider the cost of setting up a solar system as an investment for the future rather than an expense. With subsidies under the PM Surya Ghar program and loan availability to consumers, we have seen a positive shift in attitude,” said Ashish Singh, Founder of Vortex Solar Energy.

“The monthly installment for loan repayment is, in most cases, less than the bill the consumer might be paying, so it is a win-win situation for them,” he said.

Singh pointed out that subsidies are released on time, another motivator for consumers to install solar systems in their homes. Uttar Pradesh’s growing energy demand, driven by industrialization and urbanization, has created a substantial market for renewable energy.

Government support, combined with incentives, has attracted private sector investment, accelerating the growth of the solar industry. These factors are positioning Uttar Pradesh as a leader in the renewable energy landscape while contributing to sustainable development and energy security,” explained Raman.

How sunny is UP’s future?

While stakeholders hope for a bright future for solar energy in the state, challenges prevail.

Installers say complaints related to the loan process are common.

While banks are willing to provide loans for solar installations, the lack of a streamlined process across various banks results in significant delays.

“The government has set a benchmark price of ₹180,000 (~$2,079) for a 3 kW solar system. However, dealers often offer installations at ₹150,000 (~$1,732),” said Raman Bhatia of Servotech. This price reduction often comes at the expense of panel quality, with dealers resorting to substandard or even second-hand panels. This practice directly impacts consumers by compromising the system’s efficiency and longevity.”

Vortex Solar’s Singh pointed out that consumers are receiving faulty bills.

“A major issue that many consumers face is delays in net metering and faulty bills. Many consumers have received faulty bills from distribution companies (DISCOMs). Consumers come to us and ask about discrepancies in bills, but it is not our scope of work.”

Another issue that many have faced is the glitches in the PM Surya Ghar Portal. “The portal seems to be still under development. Recently, there were some issues regarding registration, and the portal could not find the correct address on the map.”

“If these issues are addressed on time, Uttar Pradesh could register better growth. The sentiments are positive, and there is a lot of acceptance and awareness among the residents,” said Singh.

“The government has set a strict turnaround time mandated for DISCOMs executives. This requirement ensures that every potential customer inquiry or ‘lead’ receives a prompt response within 24 hours. The imposition of penalties for non-compliance has significantly improved efficiency and accelerated the adoption of solar energy solutions,” explained Bhatia.

The implementation of the Uttar Pradesh Solar Power Policy 2022, PM-KUSUM, and PM Surya Ghar Muft Bijli Yojana has been quite effective.

Mohanka said that Uttar Pradesh is poised to play a pivotal role in India’s solar energy market with ambitious targets and robust initiatives.

Besides the residential segment, the state is also a growing market for solar open access. It was fifth on the list for solar open-access installations in 2024, accounting for 12% of the total capacity, which increased by 446% YoY from 2023.