The central government plans to increase financial subsidies for residential rooftop solar installations from 40% currently to about 60% under a new scheme called Pradhan Mantri Suryoday Yojana.
The enhanced incentives target economically weaker households with under 300 units monthly consumption who face financing barriers that deter solar adoption despite wanting bill savings.
Central PSUs To Drive Adoption Via SPVs
Implementation involves state-level special purpose vehicles (SPVs) established by designated central PSUs who will acquire loans and pass installation subsidies. Exports can service debts up to 10 years before transferring infrastructure ownership to consumers for added incomes.
Budget 2023 sets aside ₹10,000 crore where beneficiaries save ₹15,000-18,000 yearly. This dovetails into the recently announced subsidy expansion plans to spur adoption.
Past schemes however haven’t met rooftop solar targets with under 15% achievement versus goals. The new structure factors ground obstacles that hindered scale under earlier programs.