Last Updated:
Ministry has allowed two more payment methods for the installation of rooftop solar system under PM Surya Ghar: Muft Bijli Yojana.
PM Surya Ghar Muft Bijli Yojana: Under this scheme, Rs 100 crore has been earmarked for payment security mechanism. (Representative image)
PM Surya Ghar Muft Bijli Yojana: The Ministry of New & Renewable Energy has come out with new guidelines, allowing two more payment methods for the installation of rooftop solar system under PM-Surya Ghar: Muft Bijli Yojana.
The move will ensure payment security as well as the grant of subsidy to households in case of payments through Renewable Energy Service Company (RESCO) and utility-led aggregation models.
The ministry has notified scheme guidelines for implementation of ‘Payment Security Mechanism’ component and ‘Central Financial Assistance’ component for RESCO models/ utility-led aggregation models under PM-Surya Ghar: Muft Bijli Yojana, an official statement said.
Under this scheme, Rs 100 crore has been earmarked for payment security mechanism (PSM) for de-risking investments in RESCO-based grid-connected rooftop solar models in residential sectors, which may be supplemented through other grants, funds and sources after due approval, the statement said.
Under the RESCO model, third-party entities invest in rooftop solar installations, enabling consumers to pay only for the electricity consumed without bearing the upfront costs.
Under the utility-led aggregation (ULA) model, power distribution companies or state designated entities install rooftop solar projects on behalf of individual households.
The ministry further clarified that these guidelines are in addition to the existing mode of implementation undertaken by consumers (capex mode) through the national portal and said these alternative models will supplement the national portal-based implementation of the scheme.
PM Surya Ghar Muft Bijli Yojana: Background
In February of last year, the Union Cabinet approved the PM-Surya Ghar Muft Bijli Yojana (PM-SGMBY), with a total budget allocation of Rs 75,021 crore. The initiative aims to install rooftop solar panels in one crore households across India, offering free electricity of up to 300 units per month. Announced by Prime Minister Narendra Modi on February 13, 2024, the scheme includes central financial assistance to encourage the adoption of solar energy.
PM Surya Ghar Muft Bijli Yojana Subsidy Amount
The PM-SGMBY offers central financial assistance to encourage households to adopt rooftop solar systems. These installations provide significant savings on electricity bills and even offer the potential for additional income through the sale of surplus power to DISCOMs.
The scheme will add 30 GW of solar capacity nationwide, reducing 720 million tonnes of CO2 emissions over 25 years. Households are eligible for the following subsidies:
- Rs 30,000 for a 1 kW system
- Rs 60,000 for a 2 kW system
- Rs 78,000 for systems of 3 kW or higher
Additionally, every district will feature a Model Solar Village to promote rooftop solar adoption in rural areas.
How To Apply For PM Surya Ghar Muft Bijli Yojana?
If you own a home with a suitable roof, you can participate in this initiative. Here’s how to get started:
-Register: Visit the national rooftop solar portal pmsuryaghar.gov.in and complete the registration process.
-Choose a Vendor: Select a vendor from the curated list available on the portal.
These vendors are already registered with local DISCOMs, ensuring quality and reliability. A national vendor registry may be introduced later to simplify the process further.
PM Surya Ghar Muft Bijli Yojana Eligibility
-A valid electricity connection is required.
-Your household must not have previously received a subsidy for solar panel installations.
The scheme is expected to generate 17 lakh jobs across sectors like manufacturing, logistics, installation, operations, and related services. This will not only boost economic growth but also advance India’s green energy agenda.
