Introduction
The Union Cabinet, led by Prime Minister Narendra Modi, has approved the ‘PM Surya Ghar Muft Bijli Yojana’, a rooftop solar scheme aimed at benefiting 1 crore families. Under this scheme, beneficiaries will receive 300 units of free electricity. Union Minister Anurag Thakur announced the approval of the scheme during a recent cabinet meeting.
The scheme, with an allocated budget of ₹75,000 crore, is designed to bolster the solar energy ecosystem in the country. It’s projected to create approximately 17 lakh direct jobs across various sectors including manufacturing, logistics, supply chain, sales, installation, and related services.
Financial Support
Key components of the program include financial support in the form of Central Financial Assistance (CFA) from the central government for the implementation of Residential Rooftop Solar projects. The CFA will be capped at 3 kW, with corresponding subsidies of ₹30,000 for 1 kW systems, ₹60,000 for 2 kW systems, and ₹78,000 for 3 kW systems or higher.
Also Read: Latest Updates on Pradhan Mantri Awas Yojana (PMAY)-2023-24
Households will be able to apply for subsidies through the National Portal and choose suitable vendors for installing rooftop solar. The portal will facilitate decision-making by providing relevant information such as system sizes, benefits calculators, vendor ratings, etc. Additionally, households can access collateral-free, low-interest loans of around 7% for installing residential rooftop solar systems up to 3 kW.
As part of the scheme, a Model Solar Village will be established in each district to serve as an example for the adoption of rooftop solar in rural areas. Furthermore, the scheme includes provisions for payment security for Renewable Energy Service Company (RESCO) based models, as well as funds for innovative projects in rooftop solar technology.
