India's Power Sector
Rooftop Solar and PM Surya Ghar
How households can generate their own solar power, how net metering works, and India's 2024 scheme to put solar on one crore homes.
Rooftop solar lets homes and businesses generate their own electricity.
PM Surya Ghar
Launched in February 2024, PM Surya Ghar: Muft Bijli Yojana aims to install rooftop solar on one crore homes.
- Subsidy of up to 78,000 rupees for systems up to 3 kW.
- Households can get up to 300 units of free electricity a month from their own panels.
Net metering
With net metering, the meter runs both ways:
- Power you produce but don’t use flows to the grid.
- You pay only for net consumption.
The economics
Suppose a 3 kW system costs around 1.8 lakh rupees, and the subsidy covers 78,000. The household pays about 1 lakh rupees. If it saves around 2,000 rupees a month, the payback period is about 4 years, and panels last 25 years.
Why discoms are wary
Rooftop solar reduces sales to high-paying customers, hurting discom revenue.
Challenges
- Upfront cost and financing.
- Roof space and ownership in apartments.
- Installer quality.
The Sharma family installs a 3 kW rooftop system. Their monthly bill drops from 2,200 rupees to under 300 rupees, and they recover their investment in about four years.
Rooftop solar works on city homes, offices and factories too.
- Rooftop solar lets homes generate their own power.
- PM Surya Ghar (2024) targets one crore homes with subsidies.
- Net metering credits exported power.
- Payback can be around four years for typical systems.
No recording for this one yet - EconReader can read it aloud for you.