India's clean energy shift is reaching homes: Are consumers keeping pace?

From E20 petrol and EVs to rooftop solar and rising electricity use, India's energy transition is reaching households. But are consumers ready for the costs and is government support enough?

India’s move to cleaner energy used to focus mostly on policies, targets for renewables and investments in power plants and electric vehicles. Now, the change is happening inside people’s homes too.

Households are taking part in many ways: using E20 petrol, buying electric cars, fitting rooftop solar panels, running air conditioners more as summers get longer and hotter, and changing old appliances for energy-efficient ones.

These changes affect family budgets. The government offers subsidies and financial programs to help, but it’s still unclear whether people know enough about these options, can afford them or have the public infrastructure they need.

The transition is reaching households

Industry experts say consumers today evaluate several factors before adopting new technologies.

"Consumers are weighing fuel efficiency, technology, availability and long-term savings. E20 petrol, electric vehicles, CNG, and rooftop renewables have become part of consumer decision-making," Sanjay Sah, partner at Deloitte India, told Business Standard.

However, Sah said that adoption will depend on whether these alternatives are affordable, reliable and convenient.

Karthik Ganesan, fellow and director – Strategic Partnerships at the Council on Energy, Environment and Water (CEEW), said India has already made substantial gains in household access to cleaner fuels.

"With over 99 per cent of households using electricity as their primary source of energy, up from 80 per cent in 2011-12, we have achieved near-universal electrification. During the same time, the share of households using LPG as their primary cooking fuel almost doubled to 60 per cent," he told Business Standard.

Changing household budgets

Hotter weather is increasing power use, and while cleaner technologies like rooftop solar, electric vehicles and energy-efficient appliances can save money later, they usually need a big upfront payment first.

"This year, we bought another AC because of the extreme heat and that has affected our monthly budget. We haven't bought any energy-efficient appliances yet. Although we're still waiting for our May-June electricity bill, we expect it to be much higher because we've been using our air conditioners for longer hours than before," Jitendra Tanwar (37), a resident of a housing society in Sector 90, Gurgaon, said.

Another resident of the same housing society (who did not wish to be named) said that the weather has become so hot that using an AC isn't really a choice anymore.

"We're expecting a much higher electricity bill this summer, so we're cutting back on other household expenses. My family would like to replace our two old ACs with more energy-efficient ones, but that's a big expense and it's just not possible for us right now."

The financial challenge extends beyond higher cooling bills. For many families, spending on cleaner technologies is now part of their long-term budget planning.

Resident Lokesh Shrivastava (34) said he and his wife were interested in buying an electric vehicle but remained concerned about charging availability during long-distance travel. "The running cost is attractive, but we're still unsure whether charging infrastructure is reliable enough outside the city," he said.

Shrivastava's wife, a science teacher at a public school in Gurugram, who did not wish to be named, said many clean-energy choices required households to spend more today in the hope of saving tomorrow. "Whether it's buying an EV or installing solar panels, the long-term benefits sound good, but the initial investment makes us think twice," she said.

Experts say these concerns are becoming increasingly common as consumers weigh upfront costs against long-term savings. Questions over affordability, financing and product performance continue to influence adoption across cleaner energy technologies.

The debate is particularly visible around rooftop solar. According to CEEW's latest survey of around 17,000 households, awareness about rooftop solar has increased significantly. General awareness of solar technology has risen from 50 per cent in 2020 to 90 per cent in 2026, while more than 57 per cent of surveyed households reported specific awareness about rooftop solar systems.

However, despite rising awareness, adoption remains uneven. The same survey also found that 73 per cent of households that considered rooftop solar expensive were unaware of financing options, while adopters reported an average 71 per cent reduction in electricity bills.

Government support is expanding, but so are expectations

The government has introduced several measures to ease the energy transition. Subsidies under the PM Surya Ghar rooftop solar scheme, incentives for EV adoption through PM E-DRIVE, investments in charging infrastructure, the rollout of smart meters and awareness campaigns around energy efficiency are all aimed at reducing the burden on consumers.

As of January 2026, over 2.8 million households have benefited under the PM Surya Ghar: Muft Bijli Yojana, with the Centre disbursing ₹16,061.12 crore as financial assistance. Since the scheme was launched in February 2024, around 2.26 million rooftop solar systems have been installed across the country.

The Centre has also extended subsidies for electric two-wheelers until July 2026 and for electric three-wheelers until March 2028 under the ₹10,900 crore PM E-DRIVE scheme. While incentives for electric two-wheelers have been extended by three months, support for electric three-wheelers -- including e-rickshaws and e-carts -- has been extended by two years.

States are also stepping up efforts. From July 1, Delhi’s new Electric Vehicle Policy came into effect, with the government targeting investments of around ₹15,000 crore over four years. The policy aims to accelerate electric mobility adoption and reduce pollution levels in the national capital.

However, even with these incentives, many consumers say practical challenges continue to hold them back from adopting these cleaner energy technologies.

Satya Kumar Rathi, a resident of the same housing society, said, "The government is encouraging people to buy EVs, but charging is still a big concern for me. I travel to Karnal for work every month, sometimes twice a month and there are not enough charging stations on the way. Until this improves, I don't think an EV is a practical option for me. So I continue to drive a diesel SUV."

Tanwar said, "If I am being honest, we are trying to make choices that save money over time, but it's not always easy to understand which option is actually better. There are subsidies and different schemes but we still don't know how to make use of them."

E20 challenges
The challenge extends beyond electric vehicles and high power bills. Even technologies that have already been rolled out nationwide continue to raise consumer concerns.

The nationwide rollout of E20 has come with its challenges. Consumers continue to report lower fuel mileage and increased wear and tear.

According to a recent survey by LocalCircles, more than six in 10 owners of petrol vehicles purchased before 2023 said their vehicle's fuel mileage had dropped by over 10 per cent since early 2025. The findings come just over a year after India completed the nationwide rollout of E20 petrol, which contains 20 per cent ethanol blended with petrol.

The survey also found that 66 per cent of pre-2023 vehicle owners reported a fuel efficiency decline of more than 10 per cent, up sharply from 45 per cent recorded in a similar survey conducted in May 2026.

Around 55 per cent of owners of pre-2023 petrol vehicles said they had experienced an unusual increase in wear and tear or a greater need for repairs since early 2025, the survey stated. This is nearly double the 29 per cent reported in the May 2026 survey.

Consumer confidence remains the missing link

The experiences of these consumers reflect what experts describe as the next phase of the transition: building consumer confidence rather than simply introducing new technologies.

"The next phase should prioritise educating consumers and building last-mile infrastructure to ensure that the energy transition is efficient and socially inclusive," Prof Barun Kumar Thakur, faculty of economics at Pune's FLAME University, told Business Standard.

Sah said a consumer-first transition should provide clear information on costs and savings, and policy stability. "Success should not only be measured by number of electric vehicles, solar installations or cleaner fuels deployed. We need to consider whether the transition has resulted in reduced household energy costs or significant improvement in convenience," he said.

Thakur said information asymmetry continues to slow adoption in both urban and rural markets. "Consumer-centric energy transition should focus on transparent information, reliable fuel infrastructure and affordability through incentives and robust coordination among the various stakeholders," he said.

India’s energy transition is no longer just about renewable power, electric vehicle sales or policy targets. Its success will depend on whether regular households find cleaner options affordable, convenient and worth the money. Government support has helped expand access, but the success of the transition will ultimately depend on households.

This article has valuable insights from Prof. Barun Kumar Thakur, Faculty of Economics, FLAME University.