The scheme will assist the installation of rooftop solar systems and provide free electricity up to 300 units per month for 1 crore households.
Mar 18, 2024
The Union Cabinet has approved the PM-Surya Ghar: Muft Bijli Yojana with a total outlay of Rs.75,021 crore for installing rooftop solar and providing free electricity up to 300 units every month for one crore households.
Chaired by Prime Minister Narendra Modi, the Cabinet recently approved the scheme, which will provide Central Financial Assistance (CFA) for installation of the rooftop solar system.
CFA of 60 percent of system cost will be provided for 2 kW systems and 40 percent of additional system cost for systems between 2 to 3 kW capacity. The CFA will be capped at 3 kW.
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At current benchmark prices, this will mean INR 30,000 subsidy for 1 kW system, INR 60,000 for 2 kW systems and INR 78,000 for 3 kW systems or higher.
The households will apply for subsidy through the National Portal and will be able to select a suitable vendor for installing rooftop solar. The National Portal will assist the households in their decision-making process by providing relevant information such as appropriate system sizes, benefits calculator, vendor rating etc.
The households will be able to access collateral-free low-interest loan products of around 7 percent at present for installation of residential RTS systems up to 3 kW.
Besides, a Model Solar Village will be developed in each district of the country to act as a role model for adoption of rooftop solar in rural areas. Urban local bodies and Panchayati Raj Institutions will also benefit from incentives for promoting RTS installations in their areas.
The scheme provides a component for payment security for renewable energy service company (RESCO) based models as well as a fund for innovative projects in RTS.
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Through this scheme, the households will be able to save electricity bills as well as earn additional income through sale of surplus power to DISCOMs. A 3 kW system will be able to generate more than 300 units a month on an average for a household.
The proposed scheme will result in addition of 30 GW of solar capacity through rooftop solar in the residential sector, generating 1000 BUs of electricity and resulting in reduction of 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.
