PM-Surya Ghar Muft Bijli Yojana was launched for installing rooftop solar and providing free electricity up to 300 units every month for One Crore household. Read here to learn more about the scheme.
Rooftop solar electricity generation involves installing solar panels on the roofs of residential, commercial, institutional, or industrial buildings to generate electricity.
This method has gained popularity worldwide due to its potential to reduce carbon footprints, decrease electricity bills, and increase energy independence.
PM-Surya Ghar Muft Bijli Yojana
The Union Cabinet had approved PM-Surya Ghar Muft Bijli Yojana (PM’s Rooftop Solar Free Electricity Scheme) with a total outlay of Rs.75,021 crore for installing rooftop solar and providing free electricity up to 300 units every month for One Crore households.
The Prime Minister had launched the scheme on 13th February 2024.
The major highlights of the PM-Surya Ghar Muft Bijli Yojana include:
Central Financial Assistance (CFA) for Residential Rooftop Solar
- The PM-Surya Ghar Muft Bijli Yojana provides a CFA of 60% of system cost for 2 kW systems and 40% of additional system cost for systems between 2 to 3 kW capacity.
- The CFA will be capped at 3 kW. At current benchmark prices, this will mean Rs 30,000 subsidy for 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 subsidy through the National Portal and will be able to select a suitable vendor for installing rooftop solar. The National Portal will assist the 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% at present for installation of residential RTS systems up to 3 kW.
Other Features of the Scheme
- A Model Solar Village will be developed in each district of the country to act as a role model for adoption of rooftop solar in rural areas,
- Urban Local Bodies and Panchayati Raj Institutions shall also benefit 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.
Outcome and Impact
- Through PM-Surya Ghar Muft Bijli Yojana, the households will be able to save 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.
- The proposed scheme will result in the addition of 30 GW of solar capacity through rooftop solar in the residential sector, generating 1000 BUs of electricity and resulting in a reduction of 720 million tonnes of CO2equivalent emissions over the 25-year lifetime of rooftop systems.
- It is estimated that the scheme will create around 17 lakh direct jobs in manufacturing, logistics, supply chain, sales, installation, O&M, and other services.
The free component is that it will reduce the electricity bill as the consumer will receive a payback that can range from 3-7 years. Whatever capital cost is invested by consumers will be recovered in three to five years.
- Through a system of net metering, any solar power produced in a household and unused will flow back into the grid and will be offset in the household’s electricity bill.
- Depending on consumption patterns, this could even mean consumers earning money, though the general experience, the world over, shows a reduction in bills.
The major difference from previous versions of the scheme is a doubling of the subsidy on rooftop solar (from an earlier ₹14,500 per kW) and an anticipated improvement in service delivery.
Also, only solar panels made by Indian industry would be eligible for the subsidy, this would also lead to a boost in domestic manufacturing capacity.
Availing Benefits of PM-Surya Ghar Muft Bijli Yojana
The Government has launched a massive campaign since the launch of the PM-Surya Ghar Muft Bijli Yojana to raise awareness and generate applications from interested households.
- Households can register themselves on https://pmsuryaghar.gov.in to avail of benefits under the scheme.
- Households interested in availing of the scheme’s benefits will have to fork out the balance amount and pay a minimum of ₹20,000 depending on the power capacity of the installed system though this could be defrayed by a low-interest, collateral-free loan.
The initial plan was to fully subsidize the installation of 1-3 KW solar systems in one crore households, but the scheme will now only contribute up to 60% of the costs.
- Currently, a rooftop solar system costs about ₹50,000 per KW. A householder can either pay the balance or take a loan.
- A vendor will appraise the site and then install the system along with an inverter and a smart meter that can switch between grid and solar supply.
- Operation and maintenance costs of up to five years will be factored into the cost.
Rooftop solar electricity: How it works?
- Solar Panels: These are the most critical components. They are installed on rooftops and convert sunlight into direct current (DC) electricity. The number of panels installed depends on the available roof space, the energy needs of the building, and budget constraints.
- Inverter: The DC electricity generated by the panels is not directly usable by most home appliances, which run on alternating current (AC). An inverter converts DC into AC, making the electricity suitable for household use.
- Grid Connection: Many rooftop solar systems are connected to the power grid. This allows for a two-way flow of electricity. When the system produces more power than needed, the excess can be fed back into the grid, often in exchange for credits (net metering). When the system underproduces, such as during nighttime, electricity can be drawn from the grid.
- Battery Storage (Optional): Some systems include battery storage to keep excess energy for use when solar production is low. This enhances energy independence but adds to the cost.
Way forward
The potential impact of widespread rooftop solar electricity generation is significant. It can play a crucial role in achieving global renewable energy targets, reducing the strain on traditional power grids, and combating climate change.
Technological advancements and decreasing costs are making solar more accessible, promising a brighter, cleaner future for global energy production.
India was to have installed 40 GW of rooftop solar by 2022 but has only managed about 12 GW so far. Only a quarter of these are in houses with the rest in commercial settings. The PM-Surya Ghar Muft Bijli Yojana with its target of one crore households will expedite the target achievement for India.
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-Article by Swathi Satish
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