Govt's push to accelerate rooftop solar slowed by reluctant lenders, states

Core Insights - India's push for rooftop solar power is facing significant challenges, including loan delays and limited support from state utilities, which may hinder the country's clean energy goals [1][3][10] Group 1: Government Initiatives and Targets - The Indian government aims to nearly double clean energy capacity to 500 gigawatts by 2030, but current residential solar installations are only at 2.36 million, falling short of the 4 million target by March [1][3] - The subsidy program for residential solar installations, initiated in February 2024, covers up to 40% of installation costs [2] Group 2: Loan and Approval Challenges - Approximately 60% of rooftop solar applications are still pending approval, with about 7% rejected, indicating significant bottlenecks in the approval process [4] - Banks are delaying or rejecting loans due to documentation issues, which are seen as necessary to protect public funds [6] - Some banks are imposing collateral requirements for loans under 200,000 Indian rupees ($2,208.87), contrary to scheme guidelines, which is limiting solar power growth [8] Group 3: State Utility Involvement - State-owned utilities are hesitant to promote rooftop solar due to concerns over revenue loss as customers shift away from the electric grid [10] - Wealthier households, which typically consume more electricity, are more likely to adopt rooftop solar, further impacting utility revenues [10]