The Government of India has approved PM Surya Ghar: Muft Bijli Yojana on 29th February, 2024 to increase the share of solar rooftop capacity and empower residential households to generate their own electricity. The scheme has an outlay of Rs 75,021 crore and is to be implemented till FY 2026-27. The scheme will be implemented by a National programme Implementation Agency (NPIA) at the National level and by the State Implementation Agencies (SIAs) at the state level. The Distribution Utility (DISCOMs or Power/Energy Departments, as the case may be) shall be the State Implementation Agencies (SIA) at the State/UT level. c) Under the scheme, the DISCOMs shall be required to put in place several facilitative measures for promotion of rooftop solar in their respective areas such as availability of net meters, timely inspection and commissioning of installations, vendor registration and management, interdepartmental convergence for solarizing government building etc.
How does PM Surya Ghar Muft Bijlee Yojana work?
The scheme provides for a subsidy of 60% of the solar unit cost for systems up to 2kW capacity and 40 percent of additional system cost for systems between 2 to 3kW capacity. The subsidy has been capped at 3kW capacity.
At current benchmark prices, this will mean Rs 30,000 subsidy for 1kW system, Rs 60,000 for 2kW systems and Rs 78,000 for 3kW systems or higher.
Who are eligible to apply for the Scheme?
How to apply for PM Surya Ghar Muft Bijli Yojana?
First, the interested consumer has to register on the National Portal. This has to be done by selecting the state and the electricity distribution company. The National Portal will assist the households by providing relevant information such as appropriate system sizes, benefits calculator, vendor rating etc. The consumers can choose the vendor and the make of the Roof Top Solar unit they wish to get installed.
Vendor registration process for National Portal
Benefits of PM Surya Ghar Muft Bijli Yojana
The major highlights of the scheme include:
The scheme which is aimed at providing financial assistance to 1 crore houses for installing roof top solar panels will cost Rs 75,021 crore to the central government. Under the scheme, one crore houses will get subsidies to install solar plants on their rooftops.
After the installation of rooftop solar by the vendor, the net metering of DISCOMs will be installed and its proof will be uploaded on the portal, after which, the subsidy amount will be transferred directly to the customer’s bank account.
The government has said that the remaining cost of rooftop solar panels would also be available to the beneficiaries of the scheme through the portal in the form of loan at affordable interest rates from banks.
Out of this savings, even after paying an EMI of about Rs 610, an amount of about Rs 1265 will be left, that is, more than Rs 15,000 will be saved every year.
The scheme provides a CFA of 60% of system cost for 2 kW systems and 40% of additional system cost for systems between 2 to 3 kW capacity. The CFA will be capped at 3 kW. At current benchmark prices, this will 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 will apply for subsidy through the National Portal and will be able to select a suitable vendor for installing rooftop solar. The National Portal will assist the households in their decision-making process by providing relevant information such as appropriate system sizes, benefits calculator, vendor rating etc.
Households will be able to access collateral-free low-interest loan products of around 7% at present for installation of residential RTS systems up to 3 kW.
Other Features of the Scheme
A Model Solar Village will be developed in each district of the country to act as a role model for adoption of rooftop solar in rural areas,
Urban Local Bodies and Panchayati Raj Institutions shall 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 will be able to save electricity bills as well as earn additional income through sale of surplus power to DISCOMs. A 3 kW system will be able to generate more than 300 units a month on an average for a household.
The proposed scheme will result in addition of 30 GW of solar capacity through rooftop solar in the residential sector, generating 1000 BUs of electricity and resulting in reduction of 720 million tonnes of CO2 equivalent emissions over the 25-year lifetime of rooftop systems.
It is estimated that the scheme will 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.
To apply for PM Surya Ghar Muft Bijli Yojana please contact Grameen Vikas Sansthan, New Delhi through email- [email protected] or log into www.grameenvikassansthan.com