NEW DELHI: The government on Thursday approved the PM-Surya Ghar: Muft Bijli Yojana to promote rooftop solar power and providing electricity relief to 1 crore households.
The scheme, with a total outlay of Rs 75,021 crore, offers major financial assistance, easy loan options, and other benefits to encourage widespread adoption of rooftop solar panels.
Announced by Prime Minister Narendra Modi on February 13, 2024, the scheme promises to deliver up to 300 units of free electricity each month to a crore homes. The scheme provides subsidies to incentivise rooftop solar installation. For systems with a capacity of 2 kW, a 60% subsidy of the system cost is offered. For systems between 2 and 3 kW, a 40% subsidy is provided on the additional cost above 2 kW.
The maximum subsidy amount is capped at 3 kW, translating to Rs 30,000 for 1 kW, Rs 60,000 for 2 kW, and Rs 78,000 for 3 kW or higher systems (based on current benchmark prices).
To facilitate installation, households can access collateral-free loans with low-interest rates (about 7%) for systems up to 3 kW. To foster solar adoption in rural areas, the programme will develop a “Model Solar Village” in each district, serving as a benchmark for others.
A 3 kW system, on average, can generate over 300 units of electricity a month, exceeding the scheme’s free limit. Increased solar capacity and environmental benefits: The scheme is projected to add 30 GW of solar capacity via rooftop installations in residential sector, generating 1,000 billion units (BU) of clean electricity.