Uttar Pradesh’s solar push sparks new jobs for young entrepreneurs in Prayagraj

State government targets 265,000 rooftop solar systems in 2025-26; aims to boost solar capacity by 22,000 MW by 2027
Workers installing solar panels at a house in Prayagraj.
Workers installing solar panels at a house in Prayagraj. Vivek Arya
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Recent policy shifts around rooftop solar have triggered a surge in small businesses in parts of Uttar Pradesh, with Prayagraj emerging as an unexpected hotspot for clean energy entrepreneurs. With the state aiming to install 265,000 rooftop systems in 2025-26 alone, the sector is fast becoming both a livelihood and a local movement.

Until last year, Jai Singh, Vivek Arya and Nachiketa were engaged in small-scale businesses. But in recent months, all three have left their earlier professions to enter the solar energy sector.

Explaining the shift, Arya said, “Earlier, Prayagraj was in the news for the Kumbh Mela. But in the coming years, people will know it as the solar energy city.” His partner Singh added that it was the state government’s recent budgetary announcement that convinced them that the solar sector held better prospects for profits.

The state has mandated the installation of solar panels on all buildings over 5,000 square metres. If approved building plans do not include solar installations, authorities now have the power to cancel those plans. This policy has triggered a rooftop solar boom not just in Prayagraj but in at least six to seven surrounding districts.

“Solar energy has sparked a quiet revolution in the region,” said Binit Das, programme manager for the renewable energy unit at Delhi-based think tank Centre for Science and Environment. “This city, once known for its spiritual gatherings, is fast becoming a hub for clean energy entrepreneurship.”

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Workers installing solar panels at a house in Prayagraj.

Das credited the rise of solar start-ups to both government subsidies and the falling cost of advanced solar technology. He noted that ordinary residents, too, are embracing solar in response to soaring electricity bills.

Mohammad Siddiqui, in-charge of the Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA) in Prayagraj, echoed this view. Speaking to Down to Earth, he confirmed that a wave of rooftop solar installations is underway, aided by central and state government subsidies. “The youth are the biggest beneficiaries,” he said.

At present, most young entrepreneurs are operating in urban areas of the district, but some are now expanding to rural regions as well. “We’re not the only ones,” said Nachiketa. “Hundreds of young people are now involved in this work.”

According to Siddiqui, over 80 vendors have registered with UPNEDA in Prayagraj alone in the past few months. All installations must be done through certified vendors. “The youth are taking this up enthusiastically because they know their localities well and are able to explain the benefits of solar systems in a relatable way,” he said.

For many middle-class families, the rising cost of electricity has become unsustainable. “When a household gets a bill of Rs 1,500-3,000, it worries them,” said Nachiketa. “Electricity is an essential part of daily life, especially in the digital age, and people can’t afford to live without it.”

Installing solar panels can reduce a monthly bill from Rs 3,000 to as low as Rs 500-1,000, the vendor claimed.

Rama Dwivedi, a resident of Naini in Prayagraj, said her bill has dropped from around Rs 2,500 to around Rs 600 monthly since switching to solar.

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Workers installing solar panels at a house in Prayagraj.

Central push to scheme

The push toward rooftop solar got a boost when the central government launched the Pradhan Mantri Surya Ghar: Muft Bijli Yojana on February 15, 2024, offering significant subsidies for residential rooftop systems. The Uttar Pradesh government later announced an additional subsidy.

Singh explained the subsidy breakdown: The central government offers Rs 78,000 for a 3 kilowatt (kW) solar system. States like Uttar Pradesh and Uttarakhand add a further Rs 30,000, bringing the total subsidy to Rs 1.08 lakh.

The total installation cost of a 3 kW system is approximately Rs 2 lakh, so the effective out-of-pocket expense is Rs 90,000 or roughly equivalent to two to three years of electricity bills. “After that, you’re essentially getting free power,” Singh said. 

The subsidies for installing a 1 kW and 2 kW solar plant are Rs 60,000 and Rs 90,000, respectively. 

Rapid improvements in solar efficiency, affordability and design are helping rooftops become self-sufficient powerhouses, added Das.

One common misconception is that solar panels require vast space. But Arya clarifies that a 3 kW plant now needs only the area of a typical room. Earlier, 300-watt panels meant ten panels were needed for 3 kW, but with newer 550-580 watt panels, the same output can be achieved with just five or six.

Solar panel technology is evolving rapidly. While older monofacial panels generated power from one side, bifacial panels now collect sunlight from both the front and rear. Manufacturers offer warranties of 25 to 30 years on most systems.

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Workers installing solar panels at a house in Prayagraj.

However, Singh notes a critical caveat: Subsidies under PM Surya Ghar Muft Bijli Yojana scheme apply only to grid-connected or hybrid systems, not off-grid ones.

An on-grid solar system is directly connected to the electricity grid. It functions only when grid power is available, shutting down during outages. A hybrid system, by contrast, supplies power both to the grid and to the home using batteries during power cuts. This is why demand for hybrid systems has grown in recent months.

Uttar Pradesh’s solar energy capacity has grown significantly over the past decade. From just 288 megawatt (MW) in 2017, it has now surpassed 2,800 MW. The state’s Solar Energy Policy, launched in 2022, aims to scale this up to 22,000 MW by 2027.

The government is building solar parks in districts such as Jhansi, Lalitpur, Kanpur Nagar, Chitrakoot and Jalaun to meet this goal. There are even plans to convert the Bundelkhand Expressway into a solar expressway, with solar grids powering streetlights and nearby infrastructure. 

While similar experiments have been attempted elsewhere in India, they have seen limited success so far.

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