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DAILY NEWS ANALYSIS

  • 12 September, 2025

  • 6 Min Read

Grid Connected Rooftop Solar Scheme

Introduction

The Grid Connected Rooftop Solar Scheme was launched by the Government of India with the objective of promoting clean energy solutions to combat pollution and reduce the consumption of non-renewable resources such as coal and petroleum. By utilizing rooftops to generate electricity through solar energy, the scheme aims to provide low-cost power, improve environmental quality, and reduce dependence on fossil fuels.

What is a Solar Rooftop System?

A Solar Rooftop System involves the installation of solar photovoltaic (SPV) panels on the rooftops of residential, commercial, industrial, and institutional buildings to harness solar energy and convert it into usable electricity.

Types of Systems:

  1. Solar Rooftop System with Battery Storage:

    • Includes a battery system to store excess energy for use during night or cloudy conditions.

  2. Grid Connected Rooftop Solar System (SPV System):

    • DC power generated by solar panels is converted into AC power using a power conversion unit.

    • This power is then fed into the national electricity grid via 33kV/11kV three-phase lines.

    • During daytime, generated power is used for captive consumption, and excess energy is exported to the grid.

    • In case of insufficient solar power (due to cloud cover), the grid supplies the required electricity.

The performance of these systems depends on the user type (residential, commercial, institutional) and regulatory infrastructure in the area.

Objectives of the Programme

  • To achieve 40,000 MW of rooftop solar capacity across the country by 2022.

  • The scheme has been allocated ?11,814 crore in central financial support.

  • Phase II of the scheme offers:

    • 40% Central Financial Assistance (CFA) for rooftop systems up to 3 kW.

    • 20% CFA for systems between 3 kW to 10 kW.

    • Enhanced participation of DISCOMs (Distribution Companies) to facilitate implementation.

Advantages of Grid Connected Rooftop Solar Systems

  • Reduces electricity bills for households and businesses.

  • Utilizes existing rooftop space, eliminating the need for additional land.

  • Short gestation period for installation and setup.

  • Reduces transmission and distribution losses by generating power at the point of consumption.

  • Contributes to carbon emission reduction and promotes environmental sustainability.

  • Improves voltage levels at the tail-end of grid lines and reduces grid congestion.

Implementation and Role of MNRE

The scheme is implemented by the Ministry of New and Renewable Energy (MNRE), Government of India.

MNRE’s Responsibilities:

  • Promote research, innovation, intellectual property, and international collaboration in clean energy technologies.

  • Encourage deployment of solar, wind, biogas, and hydropower systems.

  • Reduce dependence on oil-based fuels, especially in transport and cooking.

  • Ensure energy is accessible, safe, cost-effective, and equitably distributed across India.

Challenges in Implementation

  1. Intermittent Power Supply:

    • Solar energy generation depends on sunlight intensity and is ineffective at night or during cloudy weather.

  2. Expensive Energy Storage:

    • Battery storage systems, although a solution for night-time or backup supply, are still costly and underdeveloped.

  3. Off-Grid Limitations:

    • Many remote and off-grid areas still lack effective storage or hybrid systems to ensure 24/7 power availability.

Conclusion

The Grid Connected Rooftop Solar Scheme marks a significant milestone in India’s journey toward a clean and sustainable energy future. It offers a practical, decentralized, and cost-effective solution for reducing dependency on fossil fuels while empowering citizens and institutions to become energy self-reliant.

Source: PIB


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