Cabinet okays Rs 75,000 crore rooftop solar scheme for 1 crore households

New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved PM-Surya Ghar: Muft Bijli Yojana with a total outlay of Rs 75,021 crore for installing rooftop solar power units and providing free electricity up to 300 units every month for one crore households, according to an official statement issued on Thursday.

The scheme provides Central financial assistance of 60 percent of system costs for 2 kW systems and 40 percent of additional system costs for systems between 2 and 3 kW in capacity. The financial assistance will be capped at 3 kW. At current benchmark prices, this will mean a Rs 30,000 subsidy for a 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 subsidies through the National Portal and will be able to select a suitable vendor for installing rooftop solar. The National Portal will assist households in their decision-making process by providing relevant information such as appropriate system sizes, benefits calculators, vendor ratings, etc.

Households will be able to access collateral-free low-interest loan products of around 7 percent at present for the installation of residential RTS systems up to 3 kW.

Other highlights of the scheme include a Model Solar Village being developed in each district of the country to act as a role model for the adoption of rooftop solar in rural areas, and Urban Local Bodies and Panchayati Raj Institutions also benefiting from incentives for promoting RTS installations in their areas.

The scheme provides a component for payment security for renewable energy service company (RESCO)-based models as well as a fund for innovative projects in RTS.

The scheme, announced by the Prime Minister on February 13, will enable households to save on electricity bills as well as earn additional income through the sale of surplus power to discoms. A 3 kW system will be able to generate more than 300 units a month on average for a household. (IANS)

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