What’s in the news?

• In a bid to boost solar power and sustainable progress, the Government of India has launched the PM-Surya Ghar Muft Bijli Yojana (PM-SGMBY) with a total outlay of ₹75,021 crore for installing rooftop solar in one crore households nationwide.
• The scheme aims to provide free electricity up to 300 units every month to the one crore households of the country.

About the Scheme

• Under the scheme, the households who opt to install rooftop solar electricity units will get 300 units of electricity for free every month.
• The scheme focuses on the household segment with up to 3 kW systems, which covers most of the residential consumers in India.
• The households will apply for subsidy through the National Portal (https://pmsuryaghar.gov.in) and will be able to select a suitable vendor for installing rooftop solar. 

What is the amount of subsidy for households?

• The initiative offers a subsidy of 60% of the solar unit cost for systems up to 2 kW capacity and 40% of the extra system cost for systems between 2 and 3 kW capacity. 
• The subsidy is limited to systems up to 3 kW capacity.
• Based on current benchmark prices, eligible beneficiaries will receive a subsidy of Rs 30,000 for 1 kW systems, Rs 60,000 for 2 kW systems, and Rs 78,000 for 3 kW systems or higher.

• Households will also be able to access collateral-free low-interest loan products of around 7% for installation of residential Rooftop Solar 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.

Outcome and Impact

• Through this scheme, the households will be able to save electricity bills as well as earn additional  income through sale of surplus power to DISCOMs. 
• The proposed scheme will result in addition of 30 GW of solar capacity through rooftop solar in the residential sector, generating 1000 BUs (billion units) of electricity and resulting in reduction of 720 million tonnes of CO2 equivalent 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.

Who is eligible for PM Surya Ghar Muft Bijli Yojana?

• Individuals must meet the following criteria to apply for the scheme:

1. Indian citizenship.
2. Ownership of a house with a suitable roof for solar panel installation.
3. Possession of a valid electricity connection.
4. Absence of prior subsidies for solar panels.