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Why Udaipur Is Emerging as Rajasthan's Next Rooftop Solar Growth Hub Under PM Surya Ghar

Backed by its selection under the MNRE's City Accelerator Program, attractive rooftop solar incentives and upcoming large-scale residential solar deployment under the ULA model, Udaipur is emerging as a key hub for rooftop solar under the PM Surya Ghar: Muft Bijli Yojana.

July 16, 2026. By Mrinmoy Dey

As India accelerates the adoption of residential rooftop solar under the PM Surya Ghar: Muft Bijli Yojana, Udaipur is emerging as one of Rajasthan's most promising destinations for distributed solar deployment. The city's inclusion in the Ministry of New and Renewable Energy's (MNRE) City Accelerator Program is expected to significantly boost rooftop solar installations by combining policy support, faster approvals, financial incentives and consumer awareness.
 
Launched by the Ministry of New and Renewable Energy (MNRE) in June 2025, in collaboration with the Shakti Sustainable Energy Foundation (SSEF), the City Accelerator Program is being implemented initially across 30 cities in 10 states. From Rajasthan, four cities – Udaipur, Jaipur, Jodhpur and Ajmer – have been selected for the programme.
 
The initiative aims to remove city-specific barriers to rooftop solar deployment through dedicated technical support, capacity building, awareness campaigns, policy innovation and closer coordination between Urban Local Bodies (ULBs), DISCOMs and State Nodal Agencies. Dedicated City Accelerator Cells have also been established to facilitate implementation and improve stakeholder coordination.
 
One of the biggest drivers for adoption is the financial support available to residential consumers. Under the PM Surya Ghar: Muft Bijli Yojana, households installing a 3 kW rooftop solar system are eligible for a central subsidy of INR 78,000. In Rajasthan, this is supplemented by an additional state incentive of INR 17,000, taking the total financial assistance to INR 95,000 for eligible households, substantially reducing the upfront investment required.
 
Beyond subsidies, rooftop solar offers an attractive long-term financial proposition. Under the Rajasthan Electricity Regulatory Commission (RERC) net-metering framework, homeowners can export surplus electricity generated during the day to the grid and receive INR 3.26 per unit for the excess energy supplied.
 
Udaipur's geographical advantage further strengthens its solar potential. The city receives an average solar irradiation of around 5.5 kWh/m² per day and enjoys more than 290 sunny days annually, enabling rooftop systems to generate higher energy output and deliver faster returns on investment.
 
The environmental benefits are equally significant. A typical 5 kW residential rooftop solar system can prevent the emission of more than six tonnes of carbon dioxide every year, helping reduce dependence on fossil-fuel-based electricity while preserving the ecological balance of the lake city.
 
Recently, the three DISCOMs in Rajasthan – Jaipur Vidyut Vitran Nigam (JVVNL), Jodhpur Vidyut Vitran Nigam (JDVVNL) and Ajmer Vidyut Vitran Nigam (AVVNL) – floated tenders for 330 MW (110 MW each) rooftop solar projects under the Utility Led Aggregation (ULA) model. It will include 3 lakh residential rooftop solar systems (1.1 kWp per household). The pre-bid meeting saw enthusiastic participation from PM Surya Ghar-empanelled EPC vendors.  The last date for bid submission is July 29, 2026.
 
Udaipur, which comes under AVVNL, will be a hotspot under the programme. On this backdrop, Energetica India will be hosting its second edition of REconnect Summit Rajasthan in Udaipur on July 30, 2026. The event aims to bring together stakeholders from across the solar value chain to accelerate the city's transition towards clean, decentralised energy.
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