Jammu and Kashmir’s PM Surya Ghar project faces a financing bottleneck, with over 17,000 loan applications rejected. While the region has achieved 55% of its 2027 installation goal, concerns over vendor credibility and operational delays are stalling momentum.
Jammu and Kashmir is hitting a speed bump in its aggressive push for residential rooftop solar energy. While the region has successfully completed 46,133 residential installations—achieving roughly 55.24% of its 83,500 target set for March 2027—the rollout of the PM Surya Ghar scheme is now facing a significant financing challenge.
Government data indicates that 17,416 loan applications for solar installations have been rejected, creating a liquidity bottleneck that threatens to slow future progress. Of these rejections, 14,232 are concentrated within the areas managed by the Kashmir Power Distribution Corporation Ltd (KPDCL). This high rate of rejection is a critical concern because bank financing accounts for approximately 75% of installations in these areas, making the overall project pace highly sensitive to credit availability.
Financial institutions have become increasingly cautious, citing a lack of clear vetting processes for empanelled vendors and potential gaps in project documentation. The reluctance to lend is tied to concerns over vendor credibility and the long-term viability of the projects, which banks are currently unwilling to absorb without better standardized checks. To date, the administration has disbursed ₹344.14 crore in Central subsidies and ₹13 crore in UT subsidies to support beneficiaries, but the funding gap for the remaining installations remains a primary point of friction.
Beyond the financial constraints, the administration has identified several operational hurdles that are complicating the rollout. These include inconsistent vendor availability across various geographic zones, persistent delays in the installation of net meters, and a backlog in the execution of power purchase agreements. These operational bottlenecks often result in consumer frustration, as users face non-responsive vendors or issues with system performance during power fluctuations.
To address these issues, Chief Secretary Atal Dulloo has mandated that the Power Development Department and local distribution companies conduct a formal, forensic review of all rejected loan applications. The administration aims to salvage eligible projects by improving the documentation process and ensuring better coordination between lenders and vendors. The success of these efforts will be essential for the region to maintain its installation momentum and meet its cumulative target of 83,500 rooftop solar units by the March 2027 deadline.