J&K Govt approves additional subsidy for PM Surya Ghar Scheme

Srinagar, July 27: The Administrative Council, which met here under the chairmanship of Lieutenant Governor, Manoj Sinha, approved additional subsidy from UT budget for implementation of PM Surya Ghar: Muft Bijli Yojana in UT of J&K.

The AC meeting was also attended by Advisor R.R Bhatnagar, Chief Secretary, Atal Dulloo and Principal Secretary to LG Mandeep Bhandari.

Pertinently, the PM Surya Ghar: Muft Bijli Yojana launched by PM Modi in February 2024, aims to install rooftop solar plants in one crore households across the country at subsidized prices by March 31, 2027, thereby providing up to 300 units of free electricity per month to these households.

As per the scheme, prospective beneficiaries are required to pay the full project cost upfront and the Central Financial Assistance (CFA) will be disbursed directly to the beneficiary’s designated account.

As per the additional subsidy approved by the Administrative Council, for 1 kw with project cost of Rs. 55000 the subsidy has been increased to Rs 36000, for 2 kw with project cost of Rs 110000, subsidy has been increased to Rs 72000 and for 3 kw with project cost of Rs 159500 subsidy has been increased to Rs 94800.

The approval to proposed project will make the PM Surya Ghar: Muft Bijli Yojana more attractive to the beneficiaries, who are predominantly from poor or lower-middle class category. This will foster self-reliance among subsidized consumers, aligning with current needs. Furthermore, it will enhance the share of Green Energy in day to day usage, thus decreasing the dependence on conventional energy.

In this regard, the Government has also provisioned loan facility from SBI at 7% interest rate and to give major push to the scheme, J&K Bank shall also be on-boarded for providing loans to make finance access easier to increase the scheme penetration.

The scheme success would get impetus with completion of smart metering in the rural areas. At this juncture, when energy billing practices are evolving fast, it is anticipated the PM-SGMBY will motivate the consumers to install SRT systems on their roofs to effectively reduce their household electricity costs.

The provision for additional subsidy from under UT Capex shall have financial implication of Rs. 53.53 crore for targeted 87,000 consumers under PM Surya Ghar: Muft Bijili Scheme in J&K over a period of three years. The Power Development Department shall also engage quality controller for conducting the 3rd party inspections of the Solar rooftop systems.

Box in news

New subsidy rates approved:

1 kW system (cost: Rs. 55,000): Subsidy increased to Rs. 36,000

2 kW system (cost: Rs. 110,000): Subsidy increased to Rs. 72,000

3 kW system (cost: Rs. 159,500): Subsidy increased to Rs. 94,800

SBI to provide loans at 7% interest rate

J&K Bank to be on-boarded for easier loan access

Target of 87,000 consumers in J&K over three years

Financial implication of Rs 53.53 crore for J&K government