Prime Minister Narendra Modi’s push to expand rooftop solar in India is facing delays due to hesitant banks and limited state support. The PM Surya Ghar programme, launched in 2024, aimed to install rooftop solar panels in 4 million households by March 2026, offering subsidies covering up to 40% of costs. However, as of early 2026, only about 2.36 million homes have benefitted, with many households struggling to secure loans or navigate bureaucratic hurdles, slowing India’s transition toward clean energy.
Financial institutions have been reluctant to approve loans, often citing repayment risks, missing documentation, or demanding collateral, despite government guidelines for easier access. Government data shows around 60% of applications remain pending, and 7% have been rejected. Meanwhile, some state utilities are cautious in promoting rooftop solar because it reduces electricity sales, impacting their revenue. These challenges threaten India’s renewable energy targets, including its goal to reach 500 gigawatts of renewable capacity by 2030. More