PM-Surya Ghar: Muft Bijli Yojana

Background and Purpose

India’s energy demand is rising rapidly, and much of it is still met by fossil fuels. This creates two big challenges:

1. High electricity bills for households, especially the middle class and rural poor.
2. Dependence on coal and fossil fuels, which worsens pollution and increases carbon emissions.

👉 To address this, the government launched PM-Surya Ghar: Muft Bijli Yojana in 2024.
It is a Central Sector Scheme, meaning 100% funding support comes from the Centre.

Purpose in one line: To boost rooftop solar (RTS) capacity so households can produce their own electricity and get up to 300 units per month free of cost.

Timeline and Targets

• Tenure: 2024 – 2026-27
• Target:
  • Install 30 GW solar capacity through residential rooftop systems.
  • Achieve 1 crore rooftop solar installations.
  • Generate 1,000 billion units of renewable power over 25 years.
  • Prevent 720 million tonnes of CO₂ emissions over the lifetime of these projects.

Objectives

1. Provide free/affordable electricity (up to 300 units/month) to households.
2. Reduce dependence on non-renewable energy → promote clean energy transition.
3. Strengthen local manufacturing, supply chains, and employment generation.
4. Enhance energy security by reducing imports of fossil fuels.
5. Promote awareness in rural areas by creating Model Solar Villages (one per district).

Salient Features

(A) Scheme Background

• Earlier, the Phase II Grid-Connected Rooftop Solar Programme (2019) targeted 40 GW rooftop solar by 2025-26.
• This scheme is now subsumed under PM-Surya Ghar to accelerate adoption.

(B) Eligibility for Central Financial Assistance (CFA)

• Applies to grid-connected RTS systems installed on roof, terrace, balcony, elevated structure, or Building Integrated PV (BiPV).
• Also extends to Group Net Metering and Virtual Net Metering (DISCOM-approved).
• Residential sector only – commercial/industrial consumers not eligible.

(C) Subsidy / CFA Structure

• Subsidy depends on capacity of solar system and household consumption.
• For individual households:
  • ₹30,000 per kWp for the first 2 kWp capacity.
  • ₹18,000 per kWp for the next 1 kWp.
  • No CFA beyond 3 kWp.
• For Group Housing Societies / RWAs: Up to 500 kWp (max 3 kWp per house) with ₹18,000 per kWp CFA.

📌 Example:

• 1.5 kWp system → 30,000 × 1.5 = ₹45,000 subsidy.
• 2.5 kWp system → (30,000 × 2) + (18,000 × 0.5) = ₹69,000 subsidy.

(D) Supportive Measures

1. Collateral-Free Loans: Up to 3 kWp at ~7% interest.
2. Quality Assurance: Technical standards must be met for CFA eligibility.
3. National Portal: Single window for applying, vendor selection, subsidy tracking, grievance redressal.
4. State Subsidies: States/UTs may add their own support over and above CFA.
5. Model Solar Villages: ₹1 crore grant per district for demonstration villages.
6. DISCOM Incentives:
   • DISCOMs get 5–10% incentive on benchmark cost for facilitating RTS adoption.
   • Incentives apply to first 18,000 MW additional installations.

(E) Conditions for CFA

• Solar modules must meet Domestic Content Requirement (DCR).
• CFA available even if inverter size varies.
• If a household already availed subsidy earlier, it can get CFA again for the balance capacity up to 3 kWp.

Wider Significance

• Reduces electricity bills → savings for households.
• Promotes energy self-reliance and climate change mitigation.
• Encourages local manufacturing of solar panels, creating jobs.
• Empowers local bodies with incentives for promotion.
• Acts as a grassroots awareness movement, especially in rural India through model villages.

✅ In summary: PM-Surya Ghar: Muft Bijli Yojana is a game-changer scheme that not only provides free electricity but also pushes India towards clean energy, reduces import dependence, and promotes employment. It is a classic example of a scheme that blends social welfare + environmental protection + economic growth.