Karnataka: Congress Government's Gruha Jyothi Scheme Hinders Residential Solar Rooftop Installations, Experts Warn Of Market Contraction

The Karnataka government's Gruha Jyothi scheme, designed to provide free electricity to households, is unintentionally discouraging the adoption of small-scale solar-powered house lighting systems, causing a noticeable decline in residential solar rooftop installations across the city.

According to members of the Karnataka Renewable Energy Systems Manufacturers Association (KRESMA), the scheme has led to a significant drop in interest from households, as many now enjoy either a zero electricity bill or a heavily subsidised one.

As reported by Deccan Herald, KLH Raya, Vice President of KRESMA, revealed that over a dozen clients abandoned their plans to install residential solar rooftop systems in the last four months, citing the newfound benefit of zero bills as a deterrent to investing in solar solutions.

Industry experts also point out that business in the residential solar systems sector has decreased by at least 30 per cent, with clients expressing a feeling of lack of incentive rather than financial constraints.

The typical return on investment (ROI) period for projects up to 200 units is six years, but consumers are opting to wait until the benefits of the Gruha Jyothi scheme are fully realised before making an investment.

Critics argue that the government should have considered these factors and implemented conditions before launching the scheme.

With government estimates suggesting that around 2.14 crore out of 2.16 crore residential connections in the state are eligible for the Gruha Jyothi scheme, industry experts caution that the extensive coverage may shrink the market for solar rooftops, posing challenges to the growth of the residential solar industry in Karnataka.