PM Surya Ghar Scheme Has Potential To Bring 2-3 Crore Households Under It, Say Analysts
The scheme has seen 1 crore registrations in less than two months since its launch.
The PM Surya Ghar Muft Bijli Yojana has seen 1 crore registrations in less than two months since its launch and has the potential to bring over 2–3 crore households into its fold, according to analysts.
Incentives under it benefit both residents and distribution companies, which see an average of 15% distribution loss in last-mile and high-density areas, analysts said.
"The solar rooftop scheme will allow discoms (distribution companies) to save on these losses and distribute the saved power to well-connected industrial and commercial customers," said Rupesh Sankhe, vice president and power analyst with Elara Securities India Pvt.
Since there is no cap on the number of registrations, there is a likelihood that an additional 2-3 crore households will become part of the scheme after 1 crore installations happen, Sankhe said.
However, installations are likely to be staggered, as the set-up requires evacuation facilities for over 20,000–30,000 MW of power capacity that will be generated under the scheme.
"Even at a 2 KW to 3 KW capacity, the power generated will be 20–30 GW. Besides, it will require 1 crore net meters. This would not only require a speedy implementation but also manufacturing capacity to cater to this demand, else it would lead to long lead times for the applicators," said Rahul Raizada, partner at PWC India.
For distribution companies, this is a welcome scheme, as it not only saves them last-mile losses but also operational costs of metering, billing and collections. For state governments, too, there will be savings on account of tariff subsidies since the scheme targets domestic households, which are mostly subsidised consumers, Raizada said.
The scheme is an excellent initiative to promote adoption of green energy and could bring positive transformation to household finances along with energy independence, said Gautam Das, founder and chief executive officer of Oorjan Cleantech Pvt.
"We are actively working on it and committed to implementing such initiatives, coupled with our easy financing options for end consumers, to enhance further adoption," he said.
