Indian Prime Minister Narendra Modi’s push to accelerate the roll-out of rooftop solar power is falling short of targets despite heavy subsidies due to loan delays and limited support from state utilities, vendors and analysts say.
The shortfalls represent the latest challenge to India’s efforts to nearly double clean energy capacity to 500 gigawatts by 2030, and come as the government plans to suspend clean energy tendering targets amid a mounting backlog of awarded projects yet to be built.
Challenges to plans to increase solar uptake may mean India maintains its reliance on coal-fired power.
India’s Ministry for New and Renewable Energy created its subsidy programme for residential solar panel installations in February 2024, covering up to 40 per cent of the costs. But residential installations at 2.36 million are well below the ministry’s target of 4 million by March, according to data from the programme’s website.
“Banks’ reluctance to lend and states’ hesitance to promote the schemes could derail India’s efforts to transition away from coal,” said Shreya Jai, the lead energy analyst at research firm Climate Trends in New Delhi.
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