India Region

Cabinet Approves PM-Surya Ghar: Free Electricity Scheme for Rooftop Solar Installation in One Crore Households

01 March 2024, New Delhi: The Union Cabinet, under the leadership of Prime Minister Shri Narendra Modi, has granted approval for the PM-Surya Ghar: Muft Bijli Yojana. The scheme has a total outlay of Rs. 75,021 crores and aims to install rooftop solar systems in one crore households, providing free electricity up to 300 units every month. The scheme was launched by the Prime Minister on February 13, 2024.

Key Highlights of the Scheme:

Central Financial Assistance (CFA) for Residential Rooftop Solar:

– The scheme offers a CFA of 60% of the system cost for 2 kW systems and 40% of the additional system cost for systems between 2 to 3 kW capacity. The CFA will be limited to 3 kW.

– Households can apply for the subsidy through the National Portal and choose a suitable vendor for installing the rooftop solar system. The National Portal will provide relevant information to assist households in making informed decisions, including appropriate system sizes, a benefits calculator, and vendor ratings.

– Collateral-free, low-interest loan products of around 7% are accessible to households for the installation of residential rooftop solar systems up to 3 kW.

Other Features of the Scheme:

– A Model Solar Village will be established in each district to serve as a role model for the adoption of rooftop solar in rural areas.

– Urban Local Bodies and Panchayati Raj Institutions will receive incentives to promote rooftop solar installations in their respective areas.

– The scheme includes a component for payment security for renewable energy service company (RESCO) based models, as well as a fund for innovative rooftop solar projects.

Outcome and Impact:

– The scheme will enable households to save on electricity bills and generate additional income by selling surplus power to DISCOMs. On average, a 3 kW system can generate more than 300 units of electricity per month for a household.

– The proposed scheme aims to add 30 GW of solar capacity through rooftop solar in the residential sector, generating 1000 BUs of electricity and reducing approximately 720 million tonnes of CO2 equivalent emissions over the 25-year lifetime of rooftop systems.

– It is estimated that the scheme will create around 17 lakh direct jobs in manufacturing, logistics, supply chain, sales, installation, O&M, and other services.

Availing Benefits of PM-Surya Ghar: Muft Bijli Yojana:

– The government has launched an extensive campaign to raise awareness and encourage interested households to apply for the scheme. Households can register themselves on the website to avail the benefits offered by the scheme.

Also Read: Secretary Agriculture Releases Two Whitepapers by Kisan-Vigyan Foundation on India’s Food Security

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