The Government of India has been actively pushing towards achieving a sustainable future by promoting renewable energy sources like solar power. With the recent approval of the PM Surya Ghar Muft Bijli Yojana on 29th February 2024, the government has taken a giant leap in its mission to enhance solar rooftop capacity across the country, empowering residential households to generate their own electricity. This landmark scheme is aimed at driving widespread adoption of solar power in homes, reducing electricity costs, and helping the nation reach its renewable energy goals. In this blog, we’ll explore how the PM Solar Yojana works, its benefits, eligibility criteria, and the overall impact of the scheme.
What is PM Surya Ghar Muft Bijli Yojana?
The PM Solar Yojana, formally known as PM Surya Ghar Muft Bijli Yojana, is a solar rooftop subsidy scheme initiated by the Indian government. It is part of India’s larger vision to enhance renewable energy production and reduce dependency on traditional energy sources, like coal. The scheme has been allotted a substantial budget of ₹75,021 crore and will be implemented until FY 2026-27. Its primary objective is to incentivize residential households to install solar rooftop systems by providing substantial subsidies.
Objectives of PM Surya Ghar Muft Bijali Subsidy
The overarching goals of the PM Solar Yojana are multi-fold:
Increased Solar Capacity: By encouraging residential solar adoption, the scheme aims to add 30 GW of solar capacity in the residential sector.
Reduction of Carbon Emissions: Through widespread solar adoption, the scheme hopes to reduce 720 million tonnes of CO2 over the lifetime of these rooftop systems.
Economic Empowerment: In addition to reducing electricity bills, households can sell surplus electricity back to the grid, creating an extra source of income.
Job Creation: The scheme is expected to create 17 lakh direct jobs in sectors such as manufacturing, logistics, installation, and operations.
How Does PM Solar Subsidy Work?
One of the most attractive aspects of the PM Solar Yojana is the subsidy offered to households for installing solar rooftop systems. The scheme offers subsidies based on the capacity of the solar system:
60% subsidy on the system cost for installations up to 2 kW.
40% subsidy for systems between 2 to 3 kW.
The subsidy is capped at 3 kW.
For example, under current pricing, a 1 kW system would earn a subsidy of approximately ₹30,000, while a 3 kW system could get up to ₹78,000. This effectively reduces the upfront cost for households, making solar installations far more affordable and accessible.
Key Facilitative Measures Under the Scheme
Net Meters: DISCOMs (Distribution Utility companies) will ensure that net meters are made readily available. These meters measure the electricity consumed and generated, enabling households to sell surplus electricity back to the grid.
Timely Commissioning: The DISCOMs are responsible for ensuring that solar installations are inspected and commissioned promptly.
Vendor Registration: Households can choose from registered vendors, ensuring quality control and efficient installation.
Interdepartmental Convergence: Collaboration across various departments will ensure smooth implementation, especially for installing solar panels on government buildings.
Who is Eligible for PM Solar Yojana?
To avail of the benefits of the PM Surya Ghar Muft Bijli Yojana, the following eligibility criteria must be met:
Indian Citizenship: The applicant must be a citizen of India.
House Ownership: The applicant must own a house with a roof that is suitable for the installation of solar panels.
Valid Electricity Connection: The household must have a valid electricity connection.
No Previous Subsidy: The household should not have availed any prior government subsidy for solar installations.
How to Apply for PM Solar Yojana?
Applying for the PM Solar Yojana is a straightforward process that can be done online. Follow these simple steps to register:
Visit the National Portal: Households need to go to the official website (https://pmsuryaghar.gov.in) for registration.
State Selection: Once on the portal, select your state and electricity distribution company (DISCOM).
System Size and Vendor Selection: The portal offers helpful tools like a benefits calculator and vendor ratings to help consumers choose the right system size and vendor.
Installation: Once you’ve chosen a vendor, they will assist with the installation process, including the required inspections and net meter setup.
While the above process will take a lot of time and effort, an easier alternative is to book a solar rooftop with ZunRoof and let us handle the hassle of subsidy approval.
Benefits of PM Solar Scheme
The benefits of this scheme extend far beyond the initial subsidy and cost savings:
Lower Electricity Bills: Households can significantly reduce their electricity bills as solar systems provide free energy once installed.
Income Generation: Households with solar systems can sell surplus power to the grid, generating extra income.
Environmental Impact: By adopting solar energy, households will contribute to reducing harmful carbon emissions and curbing climate change.
Energy Independence: Solar rooftops empower households to become less dependent on conventional energy sources, which are subject to fluctuating prices and shortages.
Special Features of the Scheme
The PM Solar Yojana comes with several unique features designed to ensure its success and widespread adoption:
Model Solar Villages: A model solar village will be developed in each district to showcase the potential of solar rooftops in rural areas. These villages will act as role models, encouraging nearby communities to adopt solar energy.
Urban Local Bodies and Panchayati Raj Institutions: These institutions will also be incentivized to promote rooftop solar installations in their areas.
RESCO Models: The scheme includes a payment security component for Renewable Energy Service Company (RESCO)-based models. This ensures that companies providing solar services are financially secure.
Innovative Projects Fund: A special fund has been allocated to support innovative rooftop solar projects that could help further streamline the implementation and efficiency of the scheme.
Long-Term Goals of the Central Solar Subsidy Scheme
The impact of this scheme will be felt on multiple fronts—economic, environmental, and social. By 2027, the PM Solar Yojana aims to:
Add 30 GW of rooftop solar capacity.
Generate over 1,000 billion units (BU) of electricity over the 25-year lifetime of the installed systems.
Create 17 lakh direct jobs, contributing significantly to the country’s economy.
Reduce 720 million tons of CO2 emissions, helping India meet its climate goals.
The PM Solar Yojana is a transformative step in India’s journey towards energy self-reliance and sustainability. By offering generous subsidies and promoting solar adoption across urban and rural areas, the government is ensuring that even the common household can contribute to the country’s renewable energy targets. This scheme not only offers significant financial savings but also empowers citizens to play an active role in reducing carbon emissions and creating a greener future.
If you’re a homeowner with a suitable roof and want to take advantage of this incredible opportunity, now is the time to apply for the PM Surya Ghar Muft Bijli Yojana. Visit the official National Portal today and start your journey toward sustainable living.
FAQs about PM Solar Yojana
What is the maximum subsidy I can get under the scheme?
The maximum subsidy is capped at ₹78,000 for a 3 kW system.
Can I install a system larger than 3 kW?
Yes, but the subsidy applies only up to 3 kW of the system size.
How long does it take to install the system after application?
This depends on your chosen vendor and the timely inspection by DISCOMs. Usually, it takes a few weeks.
Can I sell extra electricity back to the grid?
Yes, any surplus electricity generated can be sold to DISCOMs, allowing you to earn extra income.