Odisha, which till recently, was dependent on coal-based power generation and traditional electricity infrastructure, is rewriting history in the energy sector by diversifying its resources and moving on to solar power to build a more sustainable power system.
Taking full advantage of PM Surya Ghar: Muft Bijli Yojana, the state has not only combined environmental goals with economic pragmatism but has also inspired other states to follow its policy on solar energy.
The case in point is Delhi. Recently, government of Delhi announced that it is studying Odisha’s Utility-Led Aggregation (ULA) model to formulate a new solar policy in the national capital.
What is ULA Model
An innovative way of expanding solar energy, the ULA model is a mechanism to help people install rooftop solar panels without worrying about cost and technical work. In this model, the electricity distribution company not only handles the entire rooftop solar process but also collects applications from households, buys solar equipment in bulk, installs the panels, and provides maintenance, thereby making it cost effective.
The Odisha model, under the PM Surya Ghar: Muft Bijli Yojana, mandates a one-time payment of ₹5,000 from consumers for the installation of one Kilowatt rooftop solar panels. The remaining cost is covered through central and state government subsidies.
How it has benefited Odisha
The promotion of PM Surya Ghar Muft Bijli Yojana has not only yielded results but has also made solar power affordable for ordinary households. Lower electricity bills and the ability to generate power at home are gradually reducing the financial burden on consumers.
Besides, the installation of solar pumps has improved irrigation reliability among farmers, which in turn has become a game changer for the state where a large chunk of workforce is dependent on agriculture.
It has also reduced pressure on the conventional power grid.
Most importantly, by focusing on solar energy, the state has not only promoted clean energy infrastructure but has also managed to reduce its carbon footprint, laying foundations for a more resilient and sustainable economy.
If reports are to go by, 70% of participating households in the state have reduced electricity bills by about 90%, and some consumers have even achieved zero electricity bills, demonstrating the financial viability of the model.
Moreover, according to official figures, the state has installed till date about 706 MW of solar power capacity. The state receives over 300 sunny days annually with average solar radiation of about 5.3 kWh/m²/day, making it highly suitable for solar energy. Solar tariffs in India have fallen to around ₹2.4–₹2.6 per unit, far cheaper than coal power (₹4–₹6) and diesel generation (₹12–₹18).
A model state
By combining strong policy support, consumer-friendly schemes, and public–private partnerships, Bhubaneswar is grabbing eyeballs. Moreover, the complete electrification of two remote villages— Olaba (Mundia Sahi hamlet) and Kandakela Devabhumi (also called Kandha Devabhumi), located in Narsinghpur block of Cuttack district through solar power, is setting an example for others and inspiring other states to follow suit.
Apart from Delhi, it is believed that other states have either shown interest or are studying the model to apply it as it addresses one of India’s biggest solar challenges: high upfront cost for households.
Transformational leap
With India becoming one of the fastest growing renewable sectors in the world, the transition to solar energy could be a giant leap for the country and the world in leading clean energy. India’s solar capacity has grown from 2.8 GW in 2014 to over 100 GW in 2025—an increase of more than 35 times in a decade. Solar energy now contributes about 47% of India’s total renewable energy capacity, making it the dominant source of clean energy.
As the country sets its goals to achieve 500 GW of non-fossil fuel power capacity by 2030, with solar power targeted at around 300 GW, innovations like Odisha model could play a significant role in reshaping New Delhi’s power sector. It will reduce fossil-fuel dependence and democratise electricity generation.
Odisha has demonstrated how policy design can translate national ambitions into household-level adoption by lowering rooftop solar costs and simplifying installation.
If such models are replicated across states, rooftop solar could lead aan energy revolution by adding tens of gigawatts of decentralised power, as also reducing pressure on the grid, thereby turning consumers into producers of electricity.
In short, Odisha’s experiment is an indicator of the future of India’s energy transition, which signifies that clean power is generated not only in vast solar fields but also on the roofs of ordinary homes.
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