PM-Surya Ghar: Cabinet approves Rs 75,000 crore rooftop solar scheme for 1 crore homes
New Delhi: The Union Cabinet has ‘approved’PM-Surya Ghar‘Free Electricity Scheme’, the objective of a scheme Establishment Rooftop solar and providing free electricity to one crore homes. The total outlay of the scheme is Rs 75,021 crore. Prime Minister Narendra Modi launched the scheme on February 13, 2023.
Addressing a press conference after the Union Cabinet meeting, Information and Broadcasting Minister Anurag Thakur highlighted that the PM-Surya Ghar scheme will not only promote solar energy but also solar manufacturing and supply chain. , which will generate direct employment for about 17 lakh people.
Under the scheme, residential rooftop solar installations will get central benefits financial help (CFA). CFA will cover 60% of the system cost for 2 kW systems and 40% of the additional system cost for systems of 2 to 3 kW capacity. Maximum CFA will be capped at 3 kW. This means that 1 kW system will get a subsidy of Rs 30,000, 2 kW system will get Rs 60,000, and systems of 3 kW or more will get Rs 78,000 or more.
To avail the subsidy, households can apply through the national portal and select a suitable vendor for installation of rooftop solar power. The national portal will provide relevant information and support in decision making including system sizing, benefit calculator and vendor ratings.
Additionally, households will have access to collateral-free, low-interest loan products for the installation of residential rooftop solar systems up to 3 kW. The interest rate for these loans is currently set at around 7%.
To encourage adoption of rooftop solar in rural areas, a model solar village will be developed in each district of the country. Urban local bodies and Panchayati Raj institutions will also get incentives to promote rooftop solar energy installations in their areas.
The scheme also includes a component for payment security for Renewable Energy Service Company (RESCO) based models as well as a fund for innovative projects in rooftop solar energy.
By implementing the PM-Surya Ghar Yojana, households will not only be able to save on electricity bills but will also be able to earn additional income by selling excess electricity to discoms. On an average, a 3 kW system can generate more than 300 units of electricity per month.
The scheme aims to add 30 GW solar capacity through rooftop solar in the residential sector, generate 1000 BU of electricity and reduce 720 million tonnes of CO2 equivalent emissions over the 25 year lifetime of the rooftop system. This ambitious initiative is also expected to create around 17 lakh direct jobs in manufacturing, logistics, supply chain, sales, installation, O&M and other services.
Addressing a press conference after the Union Cabinet meeting, Information and Broadcasting Minister Anurag Thakur highlighted that the PM-Surya Ghar scheme will not only promote solar energy but also solar manufacturing and supply chain. , which will generate direct employment for about 17 lakh people.
Under the scheme, residential rooftop solar installations will get central benefits financial help (CFA). CFA will cover 60% of the system cost for 2 kW systems and 40% of the additional system cost for systems of 2 to 3 kW capacity. Maximum CFA will be capped at 3 kW. This means that 1 kW system will get a subsidy of Rs 30,000, 2 kW system will get Rs 60,000, and systems of 3 kW or more will get Rs 78,000 or more.
To avail the subsidy, households can apply through the national portal and select a suitable vendor for installation of rooftop solar power. The national portal will provide relevant information and support in decision making including system sizing, benefit calculator and vendor ratings.
Additionally, households will have access to collateral-free, low-interest loan products for the installation of residential rooftop solar systems up to 3 kW. The interest rate for these loans is currently set at around 7%.
To encourage adoption of rooftop solar in rural areas, a model solar village will be developed in each district of the country. Urban local bodies and Panchayati Raj institutions will also get incentives to promote rooftop solar energy installations in their areas.
The scheme also includes a component for payment security for Renewable Energy Service Company (RESCO) based models as well as a fund for innovative projects in rooftop solar energy.
By implementing the PM-Surya Ghar Yojana, households will not only be able to save on electricity bills but will also be able to earn additional income by selling excess electricity to discoms. On an average, a 3 kW system can generate more than 300 units of electricity per month.
The scheme aims to add 30 GW solar capacity through rooftop solar in the residential sector, generate 1000 BU of electricity and reduce 720 million tonnes of CO2 equivalent emissions over the 25 year lifetime of the rooftop system. This ambitious initiative is also expected to create around 17 lakh direct jobs in manufacturing, logistics, supply chain, sales, installation, O&M and other services.
