Category: Solar Subsidy & Policy Update

India’s Major Solar Subsidy Schemes: PM Surya Ghar & PM-KUSUM – What’s Working & What’s Not

Panaji, Goa – 17 November 2025  |  By SolSetu News Desk

India’s push for solar — through major subsidy-backed schemes like the Pradhan Mantri Surya Ghar Muft Bijli Yojana (PM Surya Ghar) targeting households, and the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) targeting agriculture and farms — is now entering a critical mid-phase. While uptake has begun, significant gaps remain in subsidy disbursement, installations and vendor readiness.

Key Updates at a Glance

🏠 Household Rooftop Subsidy: PM Surya Ghar

- The scheme has already added about **4.9 GW** of residential rooftop solar capacity in India’s first half of 2025. :contentReference[oaicite:6]{index=6}

- However, it has achieved only **~13 % of its target** of 1 crore households; subsidy release is only around 14.1 %. :contentReference[oaicite:7]{index=7}

- Some states are seeing stronger momentum. For example, Rajasthan has crossed the 1-lakh‐house milestone, and disbursed ~₹ 672 crore in subsidies. :contentReference[oaicite:9]{index=9}

🌾 Agriculture/Farm Subsidy: PM-KUSUM

- The scheme, launched in 2019, originally targeted 30,800 MW of solar capacity (later raised to ~34,800 MW). :contentReference[oaicite:10]{index=10}

- Under Component C (feeder level & grid-connected irrigation) – in Madhya Pradesh a tariff of ₹ 2.94/kWh has been approved for 232 MW under the scheme. :contentReference[oaicite:12]{index=12}

- Implementation remains uneven: many states lag on pump installations and ground rollout. :contentReference[oaicite:13]{index=13}

What’s Working & Where the Bottlenecks Are

👍 Positive Take-aways

• Strong government backing: Subsidy frameworks in place for both schemes. :contentReference[oaicite:14]{index=14}
• Growing interest from homeowners and farmers: significant application volumes being reported. :contentReference[oaicite:15]{index=15}
• Vendors and ecosystem players have new opportunities: rooftop segment (homes) and solar for agriculture and feeders.

⚠️ Key Issues & Challenges

• Subsidy release lag: Although many have applied, actual subsidy disbursement remains low. (PM Surya Ghar only ~14 % so far) :contentReference[oaicite:16]{index=16}
• State-level disparities: Some states have low uptake or delayed processes. :contentReference[oaicite:17]{index=17}
• Supply-chain, vendor & local capacities: For farms and feeders the logistics and grid integration remain constraints. :contentReference[oaicite:18]{index=18}
• Project viability & tariffs (especially under PM-KUSUM) still a concern for developers in some states. :contentReference[oaicite:19]{index=19}

Implications for Vendors, Integrators & Clients (SolSetu Community)

• Vendors & EPCs: Update your SolSetu listing to highlight your eligibility under these subsidy schemes (e.g., “We assist with PM Surya Ghar & PM-KUSUM applications”).
• Clients / Homeowners: If you are considering a rooftop solar installation, check if you qualify under PM Surya Ghar, and ask your vendor for subsidy details, expected lead-time and net cost after subsidy.
• Farm/Agribusiness Clients: Under PM-KUSUM, look at feeder level or pump solarisation opportunities—verify state-specific subsidies, tariff frameworks, and vendor capability.

Both schemes reflect India’s commitment to massifying solar installations—from rooftops of homes to farms and irrigation feeders. For SolSetu’s vendor-client ecosystem, this means **new volume opportunities** and the need for **strong compliance, transparency and execution**. Those who move quickly, understand the subsidy mechanics, and align with state-specific processes will likely benefit the most in the coming 12-24 months.