PM-SURYA GHAR MUFT BIJLI YOJANA - ENVIRONMENT

News: Cabinet approves ₹75,000-crore ‘free electricity’ solar scheme

 

What's in the news?

       The Union cabinet has recently tweaked the new ₹75,000-crore PM Surya Ghar Muft Bijli Yojana (Free rooftop solar electricity scheme).

 

PM Surya Ghar Muft Bijli Yojana:

Key takeaways

1. Original Plan:

       To completely subsidize the installation of 1 kW-3 kW solar systems in one crore households through partnerships with renewable energy service companies.

2. Changed Plan:

       Now, the scheme will only cover up to 60% of the installation costs.

       Households interested in the scheme will need to pay the remaining amount, starting from a minimum of ₹20,000, depending on the power capacity of the installed system.

       Households can get a low-interest, collateral-free loan.

       Only houses with a suitable roof and an existing grid connection can participate in the scheme. Consumers must still pay for all the net power they use from the grid.

 

Go back to basics:

Pradhan Mantri Surya Ghar Muft Bijli Yojana

Objective:

       To deliver 300 units of ‘free electricity’ monthly to 1 crore households via rooftop solar setups.

 

Nodal Ministry - Ministry of New & Renewable Energy

 

Central Subsidy:

       60% of installation costs for 2 kW systems.

       40% of costs for systems ranging from 2-3 kW capacity.

       Systems with higher wattage are ineligible.

       At present rates, there will be a subsidy of Rs 30,000 for 1 kW systems, Rs 60,000 for 2 kW systems, and Rs 78,000 for 3 kW systems or higher.

 

National Portal:

       It will facilitate subsidy applications and assist in finding a suitable vendor for installing rooftop solar.

       It will also aid in decision-making by providing relevant information as needed.