On February 13, 2024, the Prime Minister launched the PM-Surya Ghar: Muft Bijli Yojana under which rooftop solars will be installed in 1 crore households. The scheme will provide up to 300 units of electricity to the households and also the opportunity to earn up to Rs. 15,000 per month. This is a significant decision by the Cabinet as it not only provides free electricity but can also generate around 17 Lakh new jobs in manufacturing, supply, transportation, installation, and other sectors. 

Central Financial Assistance (CFA) for Residential Rooftop Solar

For the installation of the 2kW solar, the government will provide a subsidy of 60% and for the systems between 2kW to 3kW, an additional 40% subsidy will be provided. According to this, Rs, 30,000 for 1kW solar, Rs. 60,000 for 2kW solar, and Rs. 78,000 for 3kW systems or higher. 

How to apply for the scheme

To apply for the subsidy, the households have to visit the National Portal and then select a suitable vendor to install the system. The portal will guide the households and provide the necessary information like the right systems for the house, vendor ratings, calculation of costs and benefits, and more. Under the scheme, households can also access the collateral-free low-interest loan products of around 7% for installation of the rooftop solar systems for up to 3kW. 

Every district of the country will have a Model Solar Village to demonstrate the benefits and act as a role model for the adoption of rooftop solar. The local government bodies like Panchayati Raj institutions will also benefit from this as they will get incentives for the promotion of RTS. The government will also make sure that the renewable energy service company (RESCO) will get the payment for their services and won’t lose money. 

In simpler terms, the PM-Surya Ghar: Muft Bijli Yojana is a great scheme for households to cut down electricity bills and also make money from the extra electricity generated. Installation of rooftop solar systems also ensures a reduction of CO2 emissions in the long run. For registration and more information visit PM-Surya Ghar: Muft Bijli Yojana.