RU-451

PM Surya Ghar: Muft Bijli Yojana - Redefining Solar Power and Energy Access
1.28 crore registrations and 14.84 lakh applications fuel India’s solar energy expansion
(Ministry of New and Renewable Energy)
August 12, 2024
Introduction
The PM Surya Ghar: Muft Bijli Yojana is a landmark initiative that was launched by Prime
Minister Narendra Modi on February 15, 2024. It aims to transform India's energy landscape
by providing free electricity to households. This ambitious scheme empowers households to
harness solar energy by offering a substantial subsidy covering up to 40% of the cost of
installing solar panels on their rooftops. By enabling widespread adoption of solar power, the
scheme is poised to benefit 1 crore households across the country. Furthermore, it is projected
to generate significant savings for the government, estimated at Rs. 75,000 crores annually in
electricity costs. Through this initiative, the government underscores its commitment to
promoting sustainable energy and ensuring energy access for all.

Key Benefits
The PM Surya Ghar: Muft Bijli Yojana offers several significant benefits to participating
households:

❖ Free Electricity for Households: The scheme provides households with free electricity
by installing subsidised rooftop solar panels, significantly reducing their energy costs.

❖ Reduced Electricity Costs for the Government: By promoting the widespread use of
solar power, the scheme is expected to save the government an estimated ₹75,000 crore
annually in electricity costs.

❖ Increased Use of Renewable Energy: The scheme encourages the adoption of

renewable energy sources, contributing to a more sustainable and environmentally
friendly energy mix in India.

❖ Reduced Carbon Emissions: The transition to solar energy under this scheme will
help lower carbon emissions, supporting India's commitment to reducing its carbon
footprint.
Subsidy Details
The subsidy provided under the scheme varies based on the household's average monthly
electricity consumption and the corresponding suitable rooftop solar plant capacity:

Average Monthly Suitable Rooftop Solar Subsidy Support

Electricity Consumption Plant Capacity
(units)

0-150 1-2 kW ₹ 30,000/- to ₹ 60,000/-

150-300 2-3 kW ₹ 60,000/- to ₹ 78,000/-

> 300 Above 3 kW ₹ 78,000/-

Subsidy Application and Vendor Selection: Households can apply for the subsidy through
the National Portal, where they can also select a suitable vendor for installing rooftop solar.
The National Portal will assist in decision-making by providing information on appropriate
system sizes, a benefits calculator, vendor ratings, and other relevant details.

Collateral-Free Loans: Households will have access to collateral-free, low-interest loans at

around 7% interest for installing residential rooftop solar (RTS) systems up to 3 kW.
Eligibility

The household must

The household must own a house with a
be an Indian citizen. roof that is suitable for
installing solar panels.

The household must

The household must
not have availed any
have a valid electricity
other subsidy for solar
connection.
panels.

Application Process
The application process follows nine steps to ensure a smooth and efficient submission and
approval of solar panel installation.

Step-1 : Visit the official website

Step-2 : Provide personal details for registration

Step-3 : Login with Consumer Number & Mobile Number.

Step-4 : Apply for the Rooftop Solar as per the form.

Step-5 : Fill out the online application form.

Step 6: Await DISCOM approval and then install the plant with a registered vendor.

Step-7 : Once installation is over, submit the plant details and apply for net meter.

Step 8: After net meter installation and DISCOM inspection, obtain the commissioning certificate from
the portal.

Step 9: Submit bank details and a cancelled cheque. Receive subsidy within 30 days.
As of July 23, 2024, the scheme has received 1.28 crore registrations and 14.84 lakh
applications, supported by 6,552 registered vendors across the country.

Impact
The PM Surya Ghar: Muft Bijli Yojana is expected to have far-reaching outcomes, both for
individual households and the nation as a whole:

❖ Household Savings and Income Generation: Households will benefit from

significant savings on their electricity bills. Additionally, they will have the opportunity
to earn extra income by selling surplus power generated by their rooftop solar systems
to DISCOMs. For instance, an average 3-kW system can generate over 300 units per
month, providing a reliable energy source and potential revenue.

❖ Expansion of Solar Capacity: The scheme is projected to add 30 GW of solar capacity

through rooftop installations in the residential sector, significantly contributing to
India's renewable energy goals.

❖ Environmental Benefits: Over the 25-year lifetime of these rooftop systems, it is

estimated that the scheme will generate 1000 BUs of electricity while reducing CO2
emissions by 720 million tonnes, making a substantial positive impact on the
environment.

❖ Job Creation: The scheme is also expected to create approximately 17 lakh direct jobs
across various sectors, including manufacturing, logistics, supply chain, sales,
installation, operations and maintenance (O&M), and other services, thereby boosting
employment and economic growth in the country.

Model Solar Village

Under the "Model Solar Village" component of the scheme, the focus is on establishing one
Model Solar Village per district throughout India. This initiative aims to promote solar energy
adoption and empower village communities to achieve energy self-reliance. An allocation of
₹800 crore has been designated for this component, with ₹1 crore provided to each selected
Model Solar Village.

To qualify as a candidate village, it must be a revenue village with a population of over 5,000
(or 2,000 in special category states). Villages are selected through a competitive process and
evaluated on their overall distributed renewable energy (RE) capacity six months after being
identified by the District Level Committee (DLC).

The village in each district with the highest RE capacity will receive a central financial
assistance grant of ₹1 crore. Under the supervision of the DLC, the State/UT Renewable Energy
Development Agency will oversee the implementation, ensuring these model villages
successfully transition to solar energy and set a benchmark for others across the country.

Conclusion

The "PM Surya Ghar: Muft Bijli Yojana" represents a transformative step in India's sustainable
energy and economic empowerment journey. By providing substantial subsidies for rooftop
solar installations, the scheme promises to significantly reduce household electricity costs and
contributes to the government's broader goal of enhancing renewable energy use and cutting
carbon emissions. With 1.28 crore registrations and over 14 lakh applications received with
substantial financial outlay for initiatives like the Model Solar Village, the scheme
demonstrates a robust commitment to fostering energy independence and environmental
stewardship. The expected solar capacity expansion, job creation, and environmental benefits
underscores the scheme's potential to drive long-term positive change. As India progresses with
this ambitious initiative, it will undoubtedly set a precedent for solar energy adoption and
inspire similar efforts globally.

References:

• https://x.com/FinMinIndia/status/1815636683884462566
• https://pib.gov.in/PressReleasePage.aspx?PRID=2010133
• https://pib.gov.in/PressReleasePage.aspx?PRID=2005596
• https://www.myscheme.gov.in/schemes/pmsgmb
• https://www.pmsuryaghar.gov.in/whatIsNew
• https://cdnbbsr.s3waas.gov.in/s3716e1b8c6cd17b771da77391355749f3/uploads/2024/08/2024
080998431910.pdf

Santosh Kumar/ Ritu Kataria/ Saurabh Kalia