Cabinet Approves PM-Surya Ghar: Muft Bijli Yojana For Installing Rooftop Solar In One Cr Households

New Delhi: The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has 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 One Crore households. The Prime Minister launched the scheme on 13th February 2024.

The major highlights of the scheme include:

Central Financial Assistance (CFA) for Residential Rooftop Solar

1. 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.
2. 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.
3. 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

1. 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,
2. Urban Local Bodies and Panchayati Raj Institutions shall also benefit from incentives for promoting RTS installations in their areas.
3. 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.