Cabinet Approves PM-Surya Ghar: Muft Bijli Yojana with an Outlay of INR 75,021 Crore

The Union Cabinet, under the leadership of Prime Minister Narendra Modi, has given the green light to the PM-Surya Ghar: Muft Bijli Yojana, a visionary scheme aimed at fostering rooftop solar adoption across the nation. 

With a total outlay of INR 75,021 crore, the scheme aims to install rooftop solar panels and provide free electricity up to 300 units every month for one crore households. The Prime Minister officially inaugurated the scheme on February 13, 2024.

Central Financial Assistance (CFA) for Residential Rooftop Solar
The scheme offers a CFA of 60 percent of the system cost for 2 kW systems and 40 percent of the additional system cost for systems ranging from 2 to 3 kW capacity. This assistance will be capped at 3 kW, providing substantial subsidies ranging from INR 30,000 to INR 78,000 based on system capacity. Households can apply for subsidies through the National Portal, which will also assist them in selecting suitable vendors for installation.

Furthermore, households can access collateral-free low-interest loan products at around 7 percent interest rates for installing residential rooftop solar systems up to 3 kW.

Other Features of the Scheme
The scheme also entails the development of a Model Solar Village in each district, serving as an exemplar for rooftop solar adoption in rural areas. Urban Local Bodies and Panchayati Raj Institutions will receive incentives for promoting rooftop solar installations in their jurisdictions. Additionally, the scheme includes provisions for payment security for Renewable Energy Service Company (RESCO) based models and funds for innovative rooftop solar projects.

Outcome and Impact
The PM-Surya Ghar: Muft Bijli Yojana is expected to have a transformative impact. It will enable households to save on electricity bills and earn additional income by selling surplus power to DISCOMs. 

The installation of rooftop solar panels is projected to add 30 GW of solar capacity in the residential sector, generating 1000 billion units of electricity and reducing 720 million tonnes of CO2 equivalent emissions over the 25-year lifetime of the systems. Moreover, the scheme is estimated to create approximately 17 lakh direct jobs across various sectors.

To avail the benefits of the PM-Surya Ghar: Muft Bijli Yojana, interested households can register on the official website https://pmsuryaghar.gov.in. The government has launched an extensive awareness campaign to encourage households to take advantage of this transformative scheme.