Union Cabinet Approves PM-Surya Ghar: Muft Bijli Yojana to Promote Rooftop Solar Installation

The scheme, launched by the Prime Minister on February 13, 2024, is set to revolutionize India’s energy landscape.

Key Highlights of the Scheme:

Central Financial Assistance (CFA) for Residential Rooftop Solar:
• The scheme offers CFA of 60% of the system cost for 2 kW systems and 40% of the additional system cost for systems ranging from 2 to 3 kW capacity.
• The CFA will be capped at 3 kW, translating to subsidies of Rs. 30,000 for 1 kW systems, Rs. 60,000 for 2 kW systems, and Rs. 78,000 for 3 kW systems or higher, based on current benchmark prices.
• Households can apply for subsidies through the National Portal, where they can select a suitable vendor for installing rooftop solar systems. The portal will provide essential information such as system sizes, benefits calculators, vendor ratings, etc.
• Collateral-free, low-interest loan products at around 7% interest rate will be accessible for the installation of residential rooftop solar systems up to 3 kW.

Other Features of the Scheme:
• Each district in the country will witness the development of a Model Solar Village, serving as a blueprint 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 provisions for payment security for renewable energy service company (RESCO) based models and a fund for innovative rooftop solar projects.

Outcome and Impact:
• Participating households are poised to save on electricity bills and potentially earn additional income through the sale of surplus power to DISCOMs.
• A 3 kW system is expected to generate over 300 units of electricity per month on average for a household.
• The scheme targets the addition of 30 GW of solar capacity through rooftop installations in the residential sector, resulting in the generation of 1000 BUs of electricity and a reduction of 720 million tonnes of CO2 equivalent emissions over the 25-year lifetime of rooftop systems.
• An estimated 17 lakh direct jobs are anticipated to be created in manufacturing, logistics, supply chain, sales, installation, O&M, and other related services.

Availing Benefits of PM-Surya Ghar: Muft Bijli Yojana:
• The government has launched an extensive awareness campaign and invites interested households to register on the official website https://pmsuryaghar.gov.in to avail of the scheme’s benefits.