The Union Cabinet 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.
Key features
- The Prime Minister had launched the scheme on 13th February, 2024. The scheme provides a Central Financial Assistance (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.
- 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.
- 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.
- 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.
