Harnessing Solar Power

Jammu and Kashmir has long been crippled by chronic power shortages, a problem exacerbated by shifting weather patterns, rising demand, and outdated infrastructure. Despite the potential to generate up to 20,000 MW (unofficially revised to 30,000 MW) from its vast water resources, less than 12% of this hydro potential has been utilized over the past 77 years.

Worse, much of this power is controlled by the National Hydroelectric Power Corporation (NHPC), which profits from our waters and sells electricity back to us at inflated prices. Efforts to reclaim these power projects have been half-hearted and largely ineffective. Despite sustained demands from civil society, successive governments’ attempts to address this issue have fallen on deaf ears, leaving little hope for the return of these projects anytime soon.

As winter approaches each year, power outages grow more severe, disrupting daily life, suffocating businesses, and stalling industrial growth. Authorities blame misuse and theft, but the real crisis lies in untapped hydroelectric potential and the under-explored possibilities of alternative renewable energy, such as solar power.

The time for change, both for the government and the society is now —before this crisis deepens beyond repair. While fully harnessing hydroelectric potential will take time due to poor planning, red tape, and delays, the need for immediate alternative solutions has never been more urgent than now. This is where rooftop solar energy presents a viable, rapid, and sustainable solution to J&K’s power woes.

With over 2.3 million electricity consumers and around 1.5 million unused rooftops, there is a massive untapped opportunity. By installing photovoltaic panels on these rooftops, we can quickly harness a scalable source of energy, transforming idle space into productive renewable power, meeting the growing demand.

The responsibility to address this issue rests with the J&K government, under the leadership of Omar Abdullah. As the budget is being prepared for presentation on March 7, 2025, it is crucial that provisions for a large-scale rooftop solar initiative are included to effectively tackle the energy crisis.

In fact the intention behind this write-up is to draw the attention of the J&K government and planners to the urgent need for a comprehensive and actionable plan. By prioritizing rooftop solar energy in the upcoming budget, the government can take a decisive step towards solving the energy crisis and setting the region on a path toward sustainable growth and energy independence.

Jammu and Kashmir has recently been recognized to have the potential to generate over 10,000 MW from rooftop solar systems. Considering sunlight availability, panel efficiency, and other factors, this translates to an estimated 2,000 MW of reliable energy, based on a 20% capacity utilization factor.

So far, only 6,500 households out of about 23 lakh consumers have installed solar rooftops, with a total capacity of just 70 MW, which is deeply disappointing. As of February 11, 2025, India’s solar capacity surpassed 100 GW, of which 16.28 GW has been from grid-connected solar rooftops.

Advanced nations like the United States, China, and Germany have successfully scaled up rooftop solar installations through strong government policies, public-private partnerships, and community engagement. Models like feed-in-tariff systems, subsidies, and combined tax incentives have helped drive their success.

The Government of India launched the PM Surya Ghar Scheme on February 13, 2024, with a budget of Rs. 75,000 crore to provide up to 300 units of free electricity per month to 1 crore households, including 85,000 in J&K. However, the scheme caps subsidies at 3 kW, which is insufficient for snowbound areas like J&K with higher energy demands.

Unfortunately, both Discoms, serving as nodal agencies for the scheme’s implementation in J&K, have failed to meet the desired targets. Despite the enthusiastic Chief Secretary Atal Dulloo setting a goal of 30,000 households by March 2025, only 1,400 households have been connected so far. The sluggish implementation is largely due to the reduced subsidy, increasing the consumer share and making the scheme unaffordable for lower-income groups. To better serve the region, higher and more consistent government support is essential to ensure accessibility and effectiveness.

Drawing inspiration from successful global models and lessons learned from past experiences, the J&K government should launch a Mission Mode scheme for solar rooftop installations, offering subsidies for systems up to 5 kW. By utilizing the central subsidy, the J&K government should cover the remaining cost, ensuring that the total subsidy amounts to 80% of the installation cost, with consumers paying no more than 20%.

Assam, a special category state like J&K, has introduced an additional subsidy of Rs. 15,000 per kW for solar rooftop systems in March 2024 under Notification PEL/41/2024/16, though capped at 3 kW. This serves as a model that J&K could replicate to promote solar energy adoption, with the key adjustment of extending the subsidy to cover up to 5 kW, while maintaining the Rs. 15,000 per kW subsidy approved under Assam Government notification.

The J&K government’s manifesto commits to providing 200 free units of electricity per household. However, once introduced, future governments may find it difficult to withdraw this free supply, creating a continued and long-term financial burden on state exchequer. Instead of directly providing free electricity, the government could supply it indirectly by promoting rooftop solar systems. This would fulfill the promise of free electricity and offer a more sustainable solution.

The introduction of rooftop solar system offers long-term benefits by helping the government reduce its transmission and distribution (T&D) losses. Ideally, T&D losses, excluding pilferage, should be reduced to around 20%. Currently, the average cost of supply is Rs. 7.22 per unit, while PDD charges domestic users only Rs. 3.25, resulting in a loss of Rs. 4 per unit. Solar rooftops can significantly mitigate these losses. For every 1 MW of solar capacity, PDD would save Rs. 60 lakh annually through reduced subsidies and T&D losses, amounting to Rs. 15 crores per MW over the plant’s 25-year lifespan.

The initiative to install solar rooftops on government buildings is commendable, and we look forward to its full implementation. Additionally, industrial units should be encouraged to adopt solar energy with subsidies similar to those offered for DG sets, reducing their reliance on traditional power sources.

The success of the solar rooftop mission depends on securing substantial funding. Beyond the initial budget allocations for margin money, the government can leverage market debt, which can be serviced through revenue from “water usage charges” levied on hydroelectricity companies in the state. With this mechanism in place, it is expected that banks would be eager to support the mission.

This expectation arises from our experience of the Bhagliar power project, which initially struggled with financial crises, as neither the central government nor banks were willing to fund it. Even an international banking consortium, contingent on a sovereign guarantee, fell through. Ultimately, an Indian banking consortium agreed to lend the required money, with the condition that 50% of the power from 450MW Phase-1 would be used for debt servicing via Power Trade Corporation until liquidation. The mechanism proved so successful that banks sought influence to join the consortium for funding the next phase.

In a recent pre-budget submission to CM Omar Abdullah, the Federation of Chambers of Industries Kashmir proposed increasing water usage charges to align with the rates approved by Himachal Pradesh Assembly in 2023. This could provide a sustainable revenue stream to support the solar subsidy program in J&K.

Rooftop solar power, combined with the timely harnessing of hydro potential, offers J&K a unique opportunity to address its energy challenges while advancing global sustainability goals. By adopting solar energy, the state can reduce its reliance on grid power, minimize transmission losses, lower electricity costs, and strengthen its energy infrastructure.

Convinced of the benefits of rooftop solar and backed by a strong implementation framework, the government could make it mandatory for all its employees to install them, building trust and encouraging widespread adoption among the public.

This mission addresses immediate power concerns and lays the foundation for long-term energy independence. It represents a forward-thinking approach, with strategic policies and financial support unlocking J&K’s solar potential and positioning the state as a model for others.

The current leadership should remember that their decisions today will reflect their foresight and strategic planning, shaping how future generations view their role in overcoming power challenges. The long-term success of this initiative will define its lasting impact on the region’s energy future.

Syed Shakeel Qalander is a social activist and an industry leader