Cabinet okays 'PM Surya Ghar: Muft Bijli Yojana': What is this scheme, who will benefit?

In the past few years, the government has taken several initiatives to make rooftop solar systems more accessible and affordable. But, the goal is still far from being met.

In a fresh attempt to boost solar power and sustainable progress, the Union Cabinet on Thursday approved the “PM Surya Ghar: Muft Bijli Yojana.”

The scheme was also mentioned by Finance Minister Nirmala Sitharaman in her interim Budget 2024 speech on 1 February, wherein she reiterated the government’s commitment that the new initiative would help one crore families get up to 300 units of free electricity per month with savings of up to Rs 18,000 annually.

Here’s all we know about the scheme.

What is PM Surya Ghar: Muft Bijli Yojana?

The new rooftop solar scheme seeks to illuminate one crore households by offering up to 300 units of free electricity monthly.

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The Centre will bear the cost of setting up Solar photovoltaic (PV) panels for households that consume less than 300 units of electricity per month. All stakeholders will be integrated to a National Online Portal, PM Modi said.

The scheme aims to increase income, reduce power bills, and generate employment opportunities for people.

“Let’s boost solar power and sustainable progress. I urge all residential consumers, especially youngsters to strengthen the PM Surya Ghar: Muft Bijli Yojana by applying at – https://pmsuryaghar.gov.in,” the Indian leader posted on X.

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Let’s boost solar power and sustainable progress. I urge all residential consumers, especially youngsters, to strengthen the PM - Surya Ghar: Muft Bijli Yojana by applying at- https://t.co/sKmreZmenT

— Narendra Modi (@narendramodi) February 13, 2024

Union Minister Anurag Thakur, according to The Times of India, said that rooftop solar will be installed on all central government buildings on a priority basis by 2025.

The capital subsidy of Rs 75,000 crore is expected to be granted over the course of the next three to five years, depending upon the rate of installations and public demand, as reported by CNBC-TV18, which quoted government sources. So far, a few lakh solar rooftops have been installed. More money will be given at the time of the Budget’s revised estimates if the pace is robust. Currently, a five-year plan that costs Rs 75,000 crore indicates an annual expenditure of Rs 15,000 crore.

According to The Hindu, the segment’s subsidy will rise from 40 per cent to 60 per cent, with a private developer connected to Power Ministry public sector units funding the remaining portion.

Minister for Power and New and Renewable Energy RK Singh explained to the newspaper that the PSU would obtain a bank loan and reimburse it from the cost of electricity used by households over and beyond the 300 units, while the Centre will cover 60 per cent of the installation costs. Since the customer will still be required to fund 40 per cent, the scheme will pay itself back in seven to 10 years, after which the consumer can sell electricity back to the grid and earn, the report said.

In short, under the scheme, central government companies will take on the responsibility of supplying electricity to households instead of individual power distribution companies. As a result, the rooftop solar distribution companies — many of which have been having financial difficulties — will profit, the newspaper explained.

As per PTI, PM Modi said that to popularise this scheme at the grassroots, urban local bodies and panchayats shall be incentivised to promote rooftop solar systems in their jurisdictions.

The Prime Minister first announced the launch of the solar power scheme after the Ram Mandir inauguration last month. Immediately after his visit to Ayodhya on 22 January for the grand consecration of Lord Ram in Ram Temple, he chaired a meeting to launch the scheme.

सूर्यवंशी भगवान श्री राम के आलोक से विश्व के सभी भक्तगण सदैव ऊर्जा प्राप्त करते हैं।

आज अयोध्या में प्राण-प्रतिष्ठा के शुभ अवसर पर मेरा ये संकल्प और प्रशस्त हुआ कि भारतवासियों के घर की छत पर उनका अपना सोलर रूफ टॉप सिस्टम हो।

अयोध्या से लौटने के बाद मैंने पहला निर्णय लिया है कि… pic.twitter.com/GAzFYP1bjV

— Narendra Modi (@narendramodi) January 22, 2024

The Rooftop Solar Programme was launched by the government in 2014, to achieve an installed capacity of 40 gigawatts (GW) or 40,000 megawatts (MW) by 2022. The amount of energy used over time, or one Joule per second, is measured in watts, a unit of power, as per Business Today.

Who can apply?

Residential homes that install solar panels are eligible for a subsidy of Rs 30,000 per kW and Rs 60,000 for a two-kW system under the new subsidy system, according to TOI.

The report quoted Anurag Thakur as saying, “A single window clearance facility will be available on the national portal to promote rooftop solar for the commercial and industrial sector. MSMEs will be provided products on lower interest rates by banks. A model solar village will be made in every district.”

How to apply for the scheme?

Step 1 – On the pmsuryaghar.gov.in website, go to “Apply for rooftop solar” and register in the portal by selecting your state and Electricity Distribution Company and enter your Electricity Consumer Number, mobile number and email.

Proceed as per the direction from the portal.

Step 2 – Login using the Consumer number and mobile number. Then apply for the Rooftop Solar as per the form.

Step 3 – Wait for the feasibility approval from DISCOM. Once you get the approval, install the plant by any of the registered vendors in your DISCOM.

Step 4 – Once installation is over, submit the plant details and apply for net meter.

Step 5 – After the net meter is installed and inspection by DISCOM is done, they will generate commissioning certificate from portal.

Step 6 – Once you get the commissioning report, submit your bank account details and a cancelled cheque through the portal. You will receive your subsidy in the bank account within 30 days.

With inputs from PTI