PM Surya Ghar Muft Bijlee Yojana: Solar power scheme promises savings and green benefits

he PM Surya Ghar Muft Bijlee Yojana is a central initiative aimed at providing one crore Indian households with free electricity by incentivising them to install rooftop solar power units. These households can receive up to 300 units of free electricity monthly. This ambitious scheme was approved by the government in February 2024 with a budget of Rs 75,021 crores.

How does the scheme work?

The scheme offers a subsidy to cover 60 per cent of the cost for solar units up to 2 KW and 40 per cent for systems between 2-3 KW, capped at 3 KW. This translates to a subsidy of Rs 30,000 for a 1 KW system, Rs 60,000 for 2 KW, and Rs 78,000 for 3 KW or higher.

Who is eligible to apply for the scheme?

To qualify for the scheme, the applicant must be an Indian citizen. He must own a house with a roof that is suitable for installing solar panels and have a valid electricity connection. He must not have availed any other subsidy for solar panels.

How to apply for PM Surya Ghar Muft Bijli Yojana?

Interested consumers can register on the national portal (www.pmsuryaghar.gov.in) by selecting their state and electricity provider. The portal offers guidance and resources, including appropriate system sizes, a benefits calculator, vendor ratings etc. to help households choose the most suitable rooftop solar unit and installer.

Can a consumer avail of loan facility to finance the solar unit?

Yes, collateral-free loans with an interest rate of around 7 per cent are available for installing residential rooftop solar (RTS) systems up to 3 KW. The interest rate is 0.5 per cent above the prevailing RBI Repo Rate, currently at 6.5 per cent.

Why should a household opt for the Roof Top Solar Scheme?

The PM Surya Ghar Muft Bijli Yojana offers a two-fold economic benefit for participating households: reduced electricity bills and potential income generation. Households installing 3 kW rooftop solar units can expect to save around Rs 15,000 on electricity bills annually, even after loan repayments. Those opting for self-financing can expect even higher savings. Furthermore, any surplus electricity generated can be sold to DISCOMs, generating additional income. The scheme promotes environmental benefits by encouraging a shift towards renewable energy.