The Union Cabinet chaired by Prime Minister Shri Narendra Modi has approved PM-Surya Ghar: Free Electricity Scheme with a total outlay of Rs 75,021 crore to install rooftop solar energy and provide up to 300 units of free electricity every month to one crore households. Has given. The Prime Minister launched this scheme on February 13, 2024.
The scheme will provide CFA equal to 60 per cent of the additional system cost for a 2 kW capacity system and 40 per cent of the additional system cost for a 2 to 3 kW capacity system. CFA will be capped at 3 kW. At current standard prices, this would mean a subsidy of Rs 30,000 for a 1 kW capacity system, Rs 60,000 for a 2 kW capacity system and Rs 78,000 for a 3 kW or more system.
Families joining the scheme will apply for subsidy through the national portal and will be able to select a suitable vendor to install rooftop solar power. The national portal will assist households in their decision making process by providing relevant information regarding appropriate size of the system to be installed, calculation of benefits, rating of the vendor, etc.
Households joining the scheme will be able to avail guarantee-free low-interest loans currently available at around 7 per cent for installation of residential RTS systems up to 3 kW.
A model solar village will be developed in each district of the country as an exemplary example of adoption of rooftop solar energy in rural areas. Urban local bodies and Panchayati Raj institutions will also benefit from various incentives to promote RTS establishments in their areas.
The scheme will provide a fund for innovative projects in RTS along with a component for payment security for Renewable Energy Service Company (RESCO) based models.