The Indian government, under the Ministry of New and Renewable Energy, has rolled out the PM Surya Ghar Muft Bijli Yojana. This ambitious programme, unveiled by the Prime Minister, aims to electrify 10 million households through free residential rooftop solar installations.
With a staggering budget exceeding ₹750.21 billion, the initiative is set to revolutionize the energy landscape of the nation. The programme, which officially commenced on February 13, 2024, builds upon the successes and framework of its predecessor, Phase II, incorporating its financial strategies and operational duties.
The financial blueprint of the scheme is meticulously structured, with funds meticulously distributed across nine critical sub-components. A significant portion, amounting to ₹657 billion, is dedicated to Central Financial Assistance (CFA) for residential consumers. Distribution companies, known as DISCOMs, are set to receive incentives worth ₹49.5 billion, which also cover expenditures from the previous programme’s operations.
Local governing bodies are allocated a sum of ₹10 billion as incentives, while model solar villages in each district are earmarked ₹8 billion. To foster innovation in the sector, ₹5 billion is reserved for pioneering projects. Additionally, ₹1 billion is set aside for a payment security mechanism to ensure the financial stability of the programme.
Suitable Rooftop Solar Plant Benefits
The government launched a scheme named PM Surya Ghar: Muft Bijli Yojana, which aims to provide free electricity to households in India. Prime Minister Narendra Modi launched the scheme on February 15, 2024. The scheme will provide households with a subsidy to install solar panels on their roofs, covering up to 40% of the cost of the solar panels. It is expected that the scheme will benefit 1 crore households across India. Estimates suggest that the scheme will save Rs. 75,000 crore per year in electricity costs for the government.
Average Monthly Electricity Consumption (units) | Suitable Rooftop Solar Plant Capacity | Subsidy Support |
---|---|---|
0-150 | 1-2 kW | ₹ 30,000/- to ₹ 60,000/- |
150-300 | 2-3 kW | ₹ 60,000/- to ₹ 78,000/- |
> 300 | Above 3 kW | ₹ 78,000/- |
The benefits of the scheme include:
- Free electricity for households.
- Reduced electricity costs for the government.
- Increased use of renewable energy.
- Reduced carbon emissions.
Capacity building, awareness campaigns, and outreach programmes, alongside service charges, are collectively allocated ₹6.57 billion. Each of these components is strategically set at 1% of the CFA, ensuring a balanced distribution of resources.
The execution of the PM Surya Ghar Muft Bijli Yojana will be facilitated through a national portal, ensuring transparency and ease of access. Subsidies and CFA will be retroactively applicable to all applications submitted from the programme’s inception date.
Eligibility
- The household must be an Indian citizen.
- The household must own a house with a roof that is suitable for installing solar panels.
- The household must have a valid electricity connection.
- The household must not have availed any other subsidy for solar panels.
The subsidy structure is designed to incentivize residential sectors, with 60% of the benchmark cost for installations up to 2 kW. For additional capacity up to 3 kW, 40% of the benchmark cost is reimbursable. However, no further CFA is available for capacities beyond 3 kW.
Group housing societies (GHS) and residential welfare associations (RWA) are entitled to 40% of the benchmark cost for each additional kW, catering to communal facilities like electric vehicle charging stations, capped at 500 kW or 3 kW per household.
How to apply for PM-Surya Ghar Muft Bijli Yojana online
- Step-1: Visit the official website.
- Step 2: Provide the following details for registration.
- Select your State
- Select your Electricity Distribution Company
- Enter your Electricity Consumer Number
- Enter Mobile Number
- Enter Email
- Please follow the directions from the portal.
- Step 3: Login with Consumer Number & Mobile Number.
- Step-4: Apply for the Rooftop Solar as per the form.
- Step 5: Fill out the online application form.
- Step 6: Wait for the feasibility approval from DISCOM. Once you get the feasibility approval install the plant by any of the registered vendors in your DISCOM.
- Step-7: Once installation is over, submit the plant details and apply for net meter.
- Step-8: After installation of net meter and inspection by DISCOM, they will generate commissioning certificate from portal.
- Step-9: Once you get the commissioning report. Submit the bank account details and a cancelled cheque through the portal. You will receive your subsidy in your bank account within 30 days.
Documents Required
- Proof of identity.
- Proof of address.
- Electricity bill.
- Roof ownership certificate.
For rooftop solar projects up to 2 kW, households can avail ₹30,000 per kW, in line with the benchmark cost for the fiscal year 2023–2024. Any additional capacity between 2 kW to 3 kW is eligible for ₹18,000 per kW. Similarly, GHS/RWA can claim ₹18,000 per kW as CFA for their installations.
This comprehensive programme not only underscores India’s commitment to sustainable development but also aligns with global efforts to combat climate change by reducing dependency on non-renewable energy sources.
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