Cabinet Greenlights ‘PM-Surya Ghar’ Initiative for Rooftop Solar Installation in 1 Cr Homes

New Delhi: The Union Cabinet, headed by Prime Minister Narendra Modi, has given the green light to the “PM-Surya Ghar” initiative. This ambitious scheme has been allocated a substantial budget of Rs 75,021 crore, aimed at facilitating the installation of rooftop solar panels. Under this program, approximately one crore households will benefit from free electricity up to 300 units per month.

Key highlights of the scheme include:

• Central Financial Assistance (CFA) for Residential Rooftop Solar: The scheme offers financial assistance covering 60% of the system cost for 2 kW systems, and 40% for additional capacity up to 3 kW, capped at 3 kW. This translates to subsidies ranging from Rs 30,000 to Rs 78,000 based on system size.
• Easy Application Process: Households can apply for subsidies through the National Portal and choose vendors for installation. The portal offers guidance on system sizes, benefits, vendor ratings, etc.
• Low-Interest Loans: Collateral-free loans at around 7% interest are available for installing residential rooftop solar systems up to 3 kW.
• Model Solar Villages: Each district will have a model solar village to encourage rural adoption of rooftop solar. Urban local bodies and Panchayati Raj Institutions will receive incentives for promoting rooftop solar installations.
• Financial Security and Innovation Fund: The scheme includes provisions for payment security for renewable energy service companies and a fund for innovative rooftop solar projects.
• Cost Savings and Income Generation: Participating households can save on electricity bills and earn income by selling surplus power to DISCOMs. A 3 kW system can generate over 300 units monthly.
• Environmental Impact: The scheme aims to add 30 GW of solar capacity, producing 1,000 BUs of electricity and reducing CO2 emissions by 720 million tonnes over 25 years.
• Job Creation: It is projected to create approximately 17 lakh direct jobs in various sectors related to manufacturing, logistics, supply chain, sales, installation, and maintenance.