Cabinet Approves PM-Surya Ghar: Muft Bijli Yojana; How Is This Scheme Better Than Old Rooftop Solar Scheme?

PM-Surya Ghar: Muft Bijli Yojana will equip one crore households with rooftop solar systems, offering subsidies up to Rs 78,000. How this compares with the old version.
PM Surya Ghar Muft Bijli Yojana
PM Surya Ghar Muft Bijli Yojana

The Central Government has approved the PM-Surya Ghar: Muft Bijli Yojana on February 29, 2024, to equip one crore households across India with rooftop solar systems.

One Crore Households To Get Free Electricity & Additional Income

After the Cabinet meeting in New Delhi Information and Broadcasting Minister Anurag Singh Thakur said that one crore houses will get 300 units of free electricity and beneficiaries can earn an income of Rs 15,000.

It can get rid of electricity expenses for beneficiaries and also offers avenues for generating additional income through selling surplus power to DISCOMs (Distribution Companies). Under the PM Surya Ghar: Muft Bijli Yojana, all residential households are eligible for subsidies on rooftop solar tops, where a 1 kWp device can generate 4 to 5.5 units of electricity on a sunny day. Further, the scheme will create around 17 lakh direct jobs in manufacturing, logistics, supply chain, sales, installation, and other services.

How Is This Scheme Better Than Old Scheme: Subsidies Compared

Compared to its predecessor, the PM-Surya Ghar initiative marks a substantial increase in subsidies, with minimum subsidies raised by over 60 per cent. The 'Rooftop Solar Programme Phase-II' had installed 2,651.10 MW by the end of November 2023 under Phase-II of the scheme that was introduced on March 8, 2019. the ministry clarified that residential rooftop solar applications submitted before February 13, 2024, will not be applicable for central financial assistance (CFA) under the new PM Surya Ghar: Muft Bijli Yojana.

Subsidies Compared: Under the PM Surya Ghar initiative, subsidies have been increased to a great extent. For instance, the minimum subsidy for a 1-kW rooftop solar system now stands at Rs 30,000, compared to Rs 18,000 per kW in the previous scheme.

But in the new scheme, those installing 2-kW systems will receive Rs 60,000 in subsidies, up from Rs 36,000 in the old scheme. Those households opting for 3-kW systems will receive Rs 78,000 in subsidies, increased from Rs 54,000 under the old scheme. For rooftop solar systems larger than 3 kW the new scheme caps subsidy at Rs 78,000.

How To Get Solar Plants In Subsidy?

To guide customers in adopting solar plants, the government said it will develop a Model Solar Village in each district of the country. Further, in addition to subsidy, the households will be able to access collateral-free low-interest loan products of around 7 per cent for installation of residential RTS systems up to 3 kW.

The implementation process is through online registration at - Then log in to your account and apply for rooftop solar plant installation. The next step is feasibility assessments conducted by DISCOMs. Upon installation and inspection, households can obtain commission certificates from DISCOMs. Submit it in the portal along with bank details to receive subsidy directly into their bank accounts within 30 days.

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