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Tweaks in Prime Minister’s Rooftop Solar ‘free electricity’ scheme

9th March, 2024 Economy

Tweaks in Prime Minister’s Rooftop Solar ‘free electricity’ scheme

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  • The Centre has tweaked the new ₹75,000-crore PM-Surya Ghar Muft Bijli Yojna (Prime Minister’s Rooftop Solar: Free Electricity Scheme).

READ ALL ABOUT PM SURYA GHAR YOJANA: https://www.iasgyan.in/daily-current-affairs/pm-surya-ghar-muft-bijli-yojana


PM-Surya Ghar Muft Bijli Yojna Update: Key Points

  • The scheme, initially planned to fully subsidize 1-3 KW solar systems for 1 crore households, will now only contribute up to 60% of the costs.
  • Interested households will have to pay the balance amount, with a minimum of ₹20,000, depending on the system's capacity. This can be offset by a low-interest, collateral-free loan.
  • Eligibility requires a suitable roof and an existing grid connection, and consumers must pay for all net power consumed via the grid.
  • The scheme aims to reduce electricity bills, with a payback period of 3-7 years. Excess solar power can be fed back into the grid through net-metering, potentially leading to reduced bills or even earnings.
  • Public sector units will reach out to eligible households, install rooftop solar systems for free, and repay the installation cost from the electricity savings.
  • The scheme aims to generate up to 300 units of free electricity per month, translating to ₹15,000-18,000 in annual benefits for households.
  • Focus has shifted towards individuals taking loans and getting installations, aiming for greater ownership and freedom of choice.
  • The subsidy on rooftop solar has doubled, and service delivery is expected to improve, with a convenient online application process.
  • 12 public sector banks will offer collateral-free loans at 1% above the prevailing RBI repo rate for viable roof and grid-connected installations.
  • The target is to install rooftop solar systems in 1 crore houses in three years, with Gujarat already underway in installations.
  • This initiative is expected to boost domestic manufacturing capacity as only Indian-made solar panels are eligible for the subsidy.


Q. Discuss the significance of rooftop solar installations in India's energy landscape, their socio-economic impacts, challenges in scaling up adoption, and the role of schemes like the PM-Surya Ghar Muft Bijli Yojna. How can these challenges be overcome?