PM Surya Ghar Muft Bijli Yojana: Empowering India with Rooftop Solar Panels

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Cabinet approves rooftop solar subsidy scheme at an outlay of US$ 9.1 billion (Rs. 75,021 crore)

Team Finance Saathi

01/Mar/2024

The recent approval by the cabinet of the PM Surya Ghar Muft Bijli Yojana marks a significant step towards promoting solar energy adoption in India. With an allocated budget of US$ 9.1 billion (Rs. 75,021 crore), the scheme aims to install rooftop solar panels in one crore households.

Launched on February 13, 2024, this initiative offers central financial assistance, providing subsidies ranging from US$ 361.92 (Rs. 30,000) for 1 kW systems to US$ 940.99 (Rs. 78,000) for 3 kW systems or higher.

Households can easily apply for these subsidies through a national portal and select installation vendors of their choice. Moreover, they can access collateral-free, low-interest loans to facilitate the installation process. To showcase the benefits of solar energy in rural areas, Model Solar Villages will be established in each district.

The scheme also introduces an integrated National Online Portal to streamline the application process, while incentives for urban local bodies and panchayats aim to promote awareness and adoption at the grassroots level.

This initiative aligns with India's ambitious goal of achieving 500 GW of renewable energy by 2030, with rooftop solar playing a pivotal role in enhancing consumer benefits, reducing costs, and ensuring energy security.

According to Neeraj Kuldeep from the Council on Energy, Environment, and Water, solar capacity additions have witnessed significant growth, nearly doubling from 6,510 MW in 2019-20 to 12,760 MW in 2021-22.

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Cabinet approves rooftop solar subsidy scheme at an outlay of US$ 9.1 billion (Rs. 75,021 crore)

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