Jharkhand’s Solar Energy Initiatives
Jharkhand is at a crossroads in its energy landscape. As a state heavily reliant on coal, it faces the challenge of transitioning to renewable energy. It has the highest number of ‘coal’ districts (18) in India. Other coal mining states like West Bengal, Chhattisgarh, and Odisha, have 3 to 4 such districts. A third of Jharkhand’s revenues come from coal-related activities, making the shift to solar energy complex yet essential. The state government has outlined ambitious plans to develop solar energy infrastructure by 2027, aiming to reduce its dependence on coal.
Solar Energy Development Plans
Jharkhand plans to develop 4 GW of solar energy by 2027. This initiative includes the creation of 1,000 ‘solar villages.’ These villages will primarily rely on solar power for their energy needs. The solar installations in these villages are expected to generate 400 MW. The estimated cost for this project is ₹3,000 crore, with a projected subsidy of ₹1,200 crore from the central government’s PM Suryagarh Muft Bijli Yojana.
PM Surya Ghar Muft Bijli Yojana
- Launched On: February 15, 2024
- Objective: To provide free electricity (up to 300 units/month) to 1 crore households by installing rooftop solar panels.
- Financial Support:
- Subsidy covers 40% of the cost of solar panel installation.
- Households can save up to ₹18,000 per year on electricity bills.
- Scheme’s total budget: ₹75,021 crore (till FY 2026–27).
- Expected annual government savings: ₹75,000 crore on electricity costs.
- Main Benefits:
- Free electricity for homes.
- Lower government spending on electricity.
- More use of renewable solar energy.
- Helps reduce carbon emissions.
- Eligibility Criteria:
- Must be an Indian citizen.
- Must own a house with a roof suitable for solar panel installation.
- Must have a valid electricity connection.
- Should not have received a similar solar subsidy before.
- Role of DISCOMs (Distribution Companies):
- Act as State Implementation Agencies (SIAs).
- Ensure availability of net meters, conduct inspections, and commission rooftop installations.
- Incentives for DISCOMs: Based on how much additional solar capacity they help install.
- ₹4,950 crore allocated for DISCOM incentives.
Mini Grids and Solar Projects
The state is also focusing on solar-powered mini grids. So far, 237 villages have received solar mini grids, benefiting over 12,406 households. An additional 246 villages have been supported through central government assistance. The total capacity of these mini grids is 5.47 MW and 3.6 MW, respectively. This approach aims to enhance energy access in rural areas while promoting renewable sources.
Fixed Feed-in Tariff Strategy
To encourage small developers, Jharkhand has introduced a fixed feed-in tariff (FiT) for solar projects up to 10 MW. This strategy is designed to level the playing field, allowing smaller entities to compete against larger projects in the solar market. The state anticipates adding 1,000 MW of solar capacity through this initiative within five years.
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