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Last Updated:  18 March 2024

PM Surya Ghar: Muft Bijli Yojana

The Government of India has launched a significant initiative aimed at promoting the adoption of rooftop solar power systems in households across the nation. Known as the PM Surya Ghar: Muft Bijli Yojana, this scheme has been approved by the President of India and boasts a substantial financial outlay of ₹75,021 crore.

This ambitious project, launched on February 13, 2024, targets the installation of rooftop solar plants in approximately one crore households. It encompasses various components, including the incorporation of the previous Phase II of the grid-connected rooftop solar program, thereby consolidating financial resources and responsibilities under the new scheme.

Under the PM Surya Ghar: Muft Bijli Yojana, financial allocations have been earmarked for different aspects. This includes ₹65,700 crore for providing financial assistance (CFA) to residential consumers, ₹4,950 crore as incentives for Discoms, ₹1,000 crore for local bodies, and ₹800 crore for establishing model solar villages in each district, among other allocations.

The implementation of this scheme will be facilitated through a dedicated national portal (pmsuryaghar.gov.in), making the process more accessible and transparent for interested parties. Notably, the subsidy or CFA provided under this scheme will apply to all applications submitted on or after February 13, 2024.

To streamline the subsidy structure, specific criteria have been outlined. For instance, residential sectors will receive CFA for the first 2 kW of rooftop solar capacity at 60% of the benchmark cost, with additional incentives for every additional kW installed.

Furthermore, the scheme defines the baseline benchmark costs for setting up rooftop solar systems for the fiscal year 2023-24. Accordingly, a structured CFA framework has been established. Residential households installing rooftop solar plants of up to 2 kW will receive ₹30,000 per kW as CFA, with reduced incentives for additional capacity ranging between 2 kW and 3 kW.

The operational guidelines for implementing the scheme will be provided separately, ensuring clarity and uniformity in execution. These guidelines have been formulated following the delegated powers conferred to the Ministry, with the concurrence of the Integrated Financial Division.

Overall, the PM Surya Ghar: Muft Bijli Yojana represents a significant stride towards promoting renewable energy adoption at the grassroots level. By incentivizing rooftop solar installations in households, the scheme not only contributes to reducing carbon emissions but also empowers citizens with access to clean and sustainable energy sources.

Please view the document below for more details.

https://solarquarter.com/wp-content/uploads/2024/03/MNRE_16.03.2023_PM-Surya-Ghar_-Muft-Bijli-Yojana1.pdf

Source: https://solarquarter.com/2024/03/18/india-launches-pm-surya-ghar-muft-bijli-yojana-with-%E2%82%B975021-crore-outlay-for-rooftop-solar-power-adoption/