Prime Minister Narendra Modi’s plan to speed up rooftop solar power is falling short despite big subsidies. Loan delays and limited backing from state utilities hurt progress, say vendors and analysts. India aims to nearly double clean energy to 500 gigawatts by 2030, but challenges persist. The government plans to pause new clean energy projects due to many pending ones not built yet. The Ministry for New and Renewable Energy launched a subsidy scheme in February 2024, covering up to 40% of residential solar panel costs. Yet, only 2.36 million homes installed solar panels against a target of 4 million by March. Shreya Jai, energy analyst at Climate Trends, said, "Banks’ reluctance to lend and States’ hesitance to promote the schemes could derail Centre’s efforts to transition away from coal." About 60% of rooftop solar applications await approval, while 7% are rejected. The ministry claimed over 3 million households have benefited and highlighted that state utilities use the scheme to cut subsidy payouts and keep power bills low. Loan rejection rates differ by state. Under PM Surya Ghar, customers pick vendors who apply for bank loans to install solar panels. After approval and installation, the government pays the subsidy to the bank. However, banks reject or delay loans due to missing documents. A senior bank official said they seek standard documents to avoid bad loans, warning, "Currently if loans go bad, banks can take away these panels but what will we do with these panels?" Solar vendor Chamrulal Mishra from Odisha said loan denials happen over alleged missed electricity payments or unclear land records. Residents blame utility ownership changes for errors in payment records. The Department of Financial Services said it is easing documentation by allowing co-applicants. The Renewable Energy Association of Rajasthan reported that some banks demand collateral even for loans under ₹2 lakh, against scheme rules, blocking solar growth. Major banks like State Bank of India and Punjab National Bank did not comment. State utilities show little enthusiasm to promote rooftop solar. Niteesh Shanbog, an analyst at Rystad Energy, explained, "Wealthier households typically have high electricity consumption, tariffs and reliable roof access. When they shift from the grid, it leaves a larger financial burden."