President Sanctions PM-Surya Ghar: Muft Bijli Yojana to Power One Crore Homes with Solar Energy

The President of India has sanctioned PM-Surya Ghar: Muft Bijli Yojana, aimed at installing rooftop solar plants in one crore households, with a total financial outlay of INR 75,021 crore, including all scheme sub-components. 

The scheme, launched on February 13, 2024, is set to revolutionize the way electricity is accessed and utilized in households across the nation. Under the PM-Surya Ghar: Muft Bijli Yojana, rooftop solar plants will be installed in one crore households, empowering citizens with clean and sustainable energy solutions. 

One of the key features of the PM-Surya Ghar: Muft Bijli Yojana is its comprehensive approach towards incentivizing different stakeholders. The financial outlay includes INR 65,700 crore allocated for Central Financial Assistance (CFA) to residential consumers and has earmarked INR 4,950 crore for providing incentives to Distribution Companies (Discoms). Local bodies will receive incentives amounting to INR 1000 crore, incentivizing community-level engagement in the transition towards cleaner energy sources.

Furthermore, the PM-Surya Ghar: Muft Bijli Yojana allocates funds for the establishment of model solar villages in each district, with INR 800 crore dedicated to this initiative. Additionally, INR 500 crore has been set aside for innovative projects that drive technological advancements in the renewable energy sector.

To ensure the smooth implementation and sustainability of the scheme, provisions have been made for payment security mechanisms (INR 100 crore) and capacity building initiatives (INR 657 crore). Furthermore, INR 657 crore has been allocated for awareness and outreach programs and the same for service charges, facilitating widespread adoption and acceptance of solar energy solutions.

A significant aspect of the PM-Surya Ghar: Muft Bijli Yojana is its integration of previous initiatives, such as Phase-II of the Grid Connected Rooftop Solar program. With the launch of this scheme, all remaining financial outlay and liabilities from previous programs are deemed subsumed, streamlining efforts towards achieving the shared goal of energy sustainability.

The implementation of the PM-Surya Ghar: Muft Bijli Yojana will be facilitated through a dedicated National Portal (https://pmsuryaghar.gov.in), providing a user-friendly platform for stakeholders to access information and submit applications. 

The scheme's subsidy structure ensures equitable distribution of benefits, with different segments of residential consumers eligible for varying levels of assistance based on their rooftop solar capacity.

For the Residential Sector, households with the first 2 kW of rooftop solar (RTS) capacity or part thereof will receive 60 percent of the benchmark cost of 2 kW. Those with additional RTS capacity of 1 kW or part thereof are eligible for 40 percent of the benchmark cost of the additional kW. However, Residential Sector households with additional RTS capacity beyond 3 kW do not qualify for any additional CFA. 

On the other hand, Group Housing Societies/Residential Welfare Associations (GHS/RWA) catering to common facilities, including EV Charging, up to 500 kW (@3 kW per house), and inclusive of individual rooftop plants installed by residents in the GHS/RWA, will receive CFA in accordance with the criteria specified for Residential Sector households (with additional RTS capacity of 1 kW or part thereof). 

Therefore the residential households with rooftop solar plants of capacity up to 2 kW will receive INR 30,000 per kW or part thereof as CFA. For additional capacity between 2 kW and 3 kW, households will be eligible for INR 18,000 for each additional kW or part thereof. However, no additional CFA will be provided for capacity beyond 3 kW. 

Moreover, Group Housing Societies/Residential Welfare Associations (GHS/RWA) and similar entities, facilitating common facilities like EV Charging, up to 500 kW (@3 kW per house), inclusive of individual rooftop plants, will receive INR 18,000 per kW as CFA. These CFA rates will remain in effect until further notice, providing a structured framework to incentivize the installation of rooftop solar systems in both residential and community settings.

The detailed operational guidelines for the implementation of the scheme will be issued separately, ensuring transparency and efficiency in the execution process.