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The study evaluates the effectiveness of India’s flagship solar rooftop policy, the “PM Surya Ghar Muft Bijli Yojana.” This study focuses on urban households in Lucknow, Uttar Pradesh. Amid rising electricity costs, energy poverty, and the need for cleaner energy, the scheme aims to empower households by reducing grid dependence and promoting sustainable electricity use. The study employs a mixed-methods approach and has three core research objectives: the economic impact of solar rooftop adoption on electricity costs, behavioral and social changes following adoption, and barriers to policy uptake.
The first objective employs quantitative methods such as Propensity Score Matching (PSM) and Difference-in-Differences (DiD) estimation to establish causality. The results show that solar adopters experienced a significant reduction in electricity bills particularly among high-income and high-appliance households.
The second and third objectives were explored using qualitative data from a primary household survey and stakeholder interviews. Results show that solar adoption triggered positive behavioural changes, with many households reallocating saved income toward health, education, and savings. However, adoption remains uneven. Barriers include high upfront costs, procedural delays, and limited awareness, especially among lower-income groups.
The study uses the “Theory of Planned Behaviour (TPB) and the concepts of Unified Theory of Acceptance and Use of Technology 2 (UTAUT2)” to explain household decision-making. Overall, the policy has positive economic and social effects but requires targeted support to ensure equitable adoption. The thesis concludes by suggesting policy enhancement strategies to improve inclusiveness, affordability, and awareness.