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Context: 

The Union Ministry of New and Renewable Energy reported that the Pradhan Mantri Surya Ghar Muft Bijli Yojana, a solar rooftop scheme, had benefited 15.45 lakh households, with 33% of them in Gujarat.

PRADHAN MANTRI SURYA GHAR MUFT BIJLI YOJANA 

What is the Pradhan Mantri Surya Ghar Muft Bijli Yojana? 

It was announced in the Interim Budget 2024-25 by the Finance Minister and officially launched by the Prime Minister in February 2024.

• The Ministry of New & Renewable Energy (MNRE) is the nodal agency at the central level for promotion of grid-connected and off-grid renewable energy in the country.

The government has approved a budget of Rs 75,021 Crore to install rooftop solar in 1 Crore households by March 2027.

Eligibility

What are the Core objectives of this scheme?

Free Electricity => Households can get up to 300 units of free electricity every month by installing solar panels.

• This can save a family approximately Rs 15,000 to Rs 18,000 annually on their electricity bills.

Financial Savings => Government provides a subsidy of up to Rs 78,000 for systems of 3 kilowatts (kW) or more. For a 1kW system, the subsidy is Rs 30,000, and for 2kW, it is Rs 60,000.

• This subsidy can cover up to 40% of the cost of the solar panels. 
• The government directly sends the subsidy money to the beneficiaries bank accounts.
• Households can also get loans at lower interest rates (7%). 
• If they generate more electricity than they use, they can sell the extra power back to the grid, earning additional income.

Environmental Impact => Reduces carbon dioxide (CO2) emissions. For example, every kilowatt-hour (kWh) of solar power produced can save about 0.82 kg of CO2. 

• Helps India achieve its ambitious target of Net Zero emissions by 2070 and contributes to global efforts against climate change.
• The scheme aims to reduce 720 million tons of CO2 equivalent emissions over 25 years.
• Add 30 GW of solar capacity through rooftop installations in the residential sector.

Energy Security & Independence => By generating power locally, India reduces its reliance on imported fossil fuels, making the country more energy-independent. 

• Under the "Model Solar Village" component of the scheme, the focus is on establishing one Model Solar Village per district throughout India.  

Large-Scale Job Creation => Create around 17 lakh new jobs in various sectors, including manufacturing of solar panels, logistics, their installation, and ongoing maintenance.

What are the challenges?

Technical & Infrastructure Hurdles => Electricity companies (DISCOMs) face challenges in connecting these new rooftop solar systems to the existing power grid.

Awareness & Adoption Gaps => Many people, especially in remote areas, might not know enough about the scheme or its benefits

• In some states, people already get free electricity, which makes them less interested in installing solar panels, even with subsidies.
• Houses with small or uneven roof spaces, or those without clear property ownership, can make installation difficult.

Financial Sustainability Concerns => Subsidies provided could become a long-term financial burden on the government.

• All income groups may not easily get loans for the remaining cost of the solar system.
• Some DISCOMs worry that more people producing their own electricity will reduce their customer base and cause financial losses.

Way Forward

Skill Development to ensure quality installations and maintenance.

Streamlined Loans to ensure people get low-interest loans for solar systems.

Targeted Awareness Campaigns to inform and educate the public, especially in rural and remote areas.

Incentivizing DISCOMs to encourage faster approvals and better support for rooftop solar.

Integrating Storage => Making battery storage mandatory with rooftop solar systems, as seen in countries like Germany, the US, and Australia, to make the energy system more stable and sustainable.

Community Solar Models for those without suitable rooftops.

Ensure all government policies related to energy and subsidies work together effectively.

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PM Surya Ghar Scheme - Solar Roof 

PM-Surya Ghar- Muft Bijli Yojana

Source: THE PRINT