The Ministry of New and Renewable Energy (MNRE) faces significant challenges in meeting the FY 2025-26 target of installing 3.5 million rooftop solar systems under the PM Surya Ghar: Muft Bijli Yojana, as highlighted by the Parliament’s Standing Committee on Energy.

Current installation numbers remain low, with only 905,000 households benefiting from the program so far, and 600,000 receiving subsidies. The target for FY 2025-26 is four times the number of installations achieved to date, raising concerns about the feasibility of achieving the goal at the current pace.

As of February 25, 2025, approximately 17.2 million registrations and 4.56 million applications have been submitted through the national portal for rooftop solar. To boost adoption, the committee has recommended that the ministry enhance awareness campaigns in local languages and strictly enforce the operation and maintenance requirements.

Delays have also been observed in the Green Energy Corridor projects. The first phase encountered right-of-way issues, while the third phase is expected to be rolled out by FY 2026.

Budget utilization by the MNRE has been consistently below the allocated amount since 2020. In FY 2023 and 2024, only 82 per cent and 83 per cent of the total budget was utilised, respectively. As of February 2, 2025, 68 per cent of the allocated budget for the current fiscal year had been spent. Since FY 2021, MNRE has surrendered Rs 76.56 billion due to non-utilisation of funds.

To support farmers, the ministry has exempted states from contributing to the subsidy under PM KUSUM and integrated the Agriculture Infrastructure Fund into Component A of the program, allowing loans at a 6 per cent interest rate.

The recent Union Budget has revised allocations for key energy initiatives. The total budget for the solar sector increased from Rs 150.61 billion to Rs 242.24 billion, while funding for the National Green Hydrogen Mission was doubled from Rs 3 billion to Rs 6 billion.

News source: Mercom India