PM Modi’s rooftop solar vision gets cabinet nod

New Delhi, Feb 29:  The Union Cabinet, chaired by Prime Minister Narendra Modi, Thursday approved 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 1 crore households.

The PM had launched the scheme on February 13, 2024.

The major highlights of the scheme include:

Central Financial Assistance (CFA) for Residential Rooftop Solar

The scheme provides a CFA of 60 percent of system cost for 2 kW systems and 40 percent of additional system cost for systems between 2 to 3 kW capacity.

The CFA would be capped at 3 kW.

At current benchmark prices, this would mean Rs 30,000 subsidy for 1 kW system, Rs 60,000 for 2 kW systems, and Rs 78,000 for 3 kW systems or higher.

The households would apply for subsidy through the national portal and would be able to select a suitable vendor for installing rooftop solar.

The national portal would assist the households in their decision-making process by providing relevant information like appropriate system sizes, benefits calculator, and vendor ratings.

The households would be able to access collateral-free low-interest loan products of around 7 percent at present for the installation of residential RTS systems up to 3 kW.

Other Features of the Scheme

A model solar village would be developed in each district of the country to act as a role model for the adoption of rooftop solar in rural areas.

Urban Local Bodies (ULBs) and Panchayati Raj Institutions (PRIs) would 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.

Outcome and Impact

Through this scheme, the households would be able to save electricity bills as well as earn additional income through the sale of surplus power to DISCOMs.

A 3 kW system would be able to generate more than 300 units a month on average for a household.

The proposed scheme would result in the addition of 30 GW of solar capacity through rooftop solar in the residential sector, generating 1000 BUs of electricity and resulting in the reduction of 720 million tonnes of CO2 equivalent emissions over the 25-year lifetime of rooftop systems.

It is estimated that the scheme would 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 a massive campaign since the launch of the scheme for raising awareness and generating applications from interested households.

Households can register themselves on https://pmsuryaghar.gov.in to avail benefits under the scheme.