Union Cabinet approves rooftop solar scheme

Prime Minister Narendra Modi had launched the scheme on February 13, 2024. The government is hoping that the scheme could result in substantial household savings as well as reduce the strain on electricity grids.

New Delhi: The Union cabinet on Thursday approved PM-Surya Ghar Muft Bijli Yojana for installing rooftop solar in one crore households, with a total outlay of Rs.75,021 crore.

Prime Minister Narendra Modi had launched the scheme on February 13, 2024. 

Under the scheme, the government will provide a financial assistance, or subsidy, of Rs 30,000 for installing solar power equipment of 1 kilowatt (kW). For 2 kW and 3 kW rooftop systems, the subsidies will be Rs 60,000 and Rs 78,000, respectively, said a statement from the government.

The government is hoping that the scheme could result in substantial household savings as well as reduce the strain on electricity grids.

Households covered by the scheme would  be provided free electricity of up to 300 units a month from the grid, as well as access to collateral-free, low-interest loans for installing solar power equipment.

This initiative is expected to contribute to the addition of 30 GW of solar capacity through rooftop installations in the residential sector, significantly reducing carbon emissions by 720 million tonnes over the 25-year lifetime of the systems. Currently, solar power constitutes about 17% of the country's overall power capacity.

The scheme is poised to generate approximately 17 lakh direct jobs across various sectors, including manufacturing, logistics, supply chain, sales, installation, operation, and maintenance, providing a substantial boost to the economy, the government said. 

The government will also develop a ‘model solar village’ in each district of the country to encourage adoption of rooftop solar power in rural areas, Union minister for information and broadcasting Anurag Thakur said after the cabinet meeting.

The scheme will be implemented through special purpose vehicles established by central public sector enterprises designated for each state. State-run REC Ltd will be the implementing agency for the scheme.

Households will be able to apply for subsidy through national portal and can select suitable vendor for installing rooftop solar.

The government has launched a massive campaign since the launch of the scheme for raising awareness and generating applications from interested households. Peopole can register on https://pmsuryaghar.gov.in.