According to a recent report, the number of new rooftop solar installations in Punjab has seen a significant drop since the state government introduced free electricity for agriculture and domestic consumers.
Official data revealed that while 15,000 domestic customers opted for rooftop solar between 2019-2022, only 7,500 new installations were added after free power was rolled out in July 2022. Consumers who use over 300 units per month are now the primary customers investing in solar.
A solar integration company representative stated their business has declined nearly 40% in the last two years. With free power up to 300 units or 600 units per billing cycle, most households see little incentive to invest Rs. 1.5-2 lakh in a solar system.
Similarly, uptake of solar pumps for farms has nose-dived as power is provided free to agricultural consumers who use electricity during peak daylight hours suited for solar generation.
Though Punjab has the fourth highest rooftop solar capacity nationally, growth has slowed significantly. Officials are now focusing on installing solar on government buildings having added 6,277 kW in the last two years.
Anecdotal evidence shows many consumers in the state are installing additional connections to avail free power quotas across family members rather than adopting solar. Unless subsidies help address high upfront costs or free quotas are reformed, Punjab’s solar sector seems unlikely to reach its full potential anytime soon.
