The Government of India, as part of its commitment to sustainable energy solutions and citizen empowerment, introduced the PM Surya Ghar: Muft Bijli Yojana on 29th February 2024. With a substantial financial outlay of ₹75,021 crore, this initiative underscores India’s determination to transition to clean energy while addressing the energy demands of its population.
Contents
- 1 What is PM Surya Ghar Yojana?
- 2 Implementation of PM Surya Ghar: Muft Bijli Yojana
- 3 How does PM Surya Ghar Muft Bijli Yojana work?
- 4 Who is Eligible to Apply for PM Surya Ghar Muft Bijli Yojana?
- 5 How to Apply for PM Surya Ghar Muft Bijli Yojana?
- 6 Capacity Calculator for Rooftop Solar Plant Under PM Surya Ghar: Muft Bijli Yojana
- 7 Vendor Selection and Installation Process
- 8 Step-by-Step Installation and Verification
- 9 Financial Assistance and Subsidies
- 10 Central Financial Assistance (CFA) Framework for PM Surya Ghar: Muft Bijli Yojana
- 11 Key Features of the PMSG National Portal
- 12 Additional Features for Consumers
- 13 Aims and Objectives of PM Surya Ghar: Muft Bijli Yojana
- 14 Transition from Existing Schemes
- 15 Benefits and Socioeconomic Impact
What is PM Surya Ghar Yojana?
The scheme enables homeowners to install solar panels on their rooftops under a subsidized model. The government provides financial support (subsidies) to reduce the upfront cost of the solar system, making it easier for households to switch to renewable energy.
This transformative scheme is aimed at increasing the adoption of solar rooftop systems in residential sectors and enabling households to generate their own electricity. The entire process—from applying for the scheme to receiving subsidies—is handled through a dedicated online platform called the PM Surya Ghar National Portal.
The program also ensures that all installations meet specific quality standards and come with a 5-year free maintenance guarantee. This initiative is a step toward achieving India’s renewable energy goals while directly benefiting the common people.
Implementation of PM Surya Ghar: Muft Bijli Yojana
The scheme is applicable for applications received on the National Portal from its launch date, 13th February 2024, and will remain operational until 31st March 2027.
How does PM Surya Ghar Muft Bijli Yojana work?
PM Surya Ghar Muft Bijli Yojana provides for a subsidy of 60% of the solar unit cost for systems up to 2kW capacity and 40 percent of additional system cost for systems between 2 to 3kW capacity. The subsidy has been capped at 3kW capacity.
At current benchmark prices, this will mean Rs 30,000 subsidy for 1kW system, Rs 60,000 for 2kW systems and Rs 78,000 for 3kW systems or higher.
Who is Eligible to Apply for PM Surya Ghar Muft Bijli Yojana?
The eligibility criteria for the yojana are as follows:
- The applicant must be an Indian citizen.
- Must own a house with a roof that is suitable for installing solar panels.
- The household must have a valid electricity connection.
How to Apply for PM Surya Ghar Muft Bijli Yojana?
To benefit from the scheme, eligible consumers must apply on the official PM Surya Ghar National Portal. This portal will guide you through every step of the process, including understanding solar installations, choosing a vendor, and applying for subsidies. To do so, follow the steps provided below:
Step 1: Register on the Portal
- Visit the official PM Surya Ghar portal, www.pmsuryaghar.gov.in.
- Select your State.
- Select your District.
- Choose your Electricity Distribution Company (DISCOM).
- Enter your Consumer Account Number (as mentioned in your electricity bill).
- Provide your Mobile Number to complete the registration process.
Step 2: Login to the Portal
- Use your registered Mobile Number to log in to the portal.
- Navigate to the application section and apply for the rooftop solar installation.
Step 3: Get Feasibility Approval and Install the Plant
- Once your application is reviewed and approved for feasibility, choose a plant from any of the registered vendors listed under your DISCOM.
- Get the plant installed as per the guidelines.
Step 4: Submit Installation Details and Apply for a Net Meter
- After the solar plant is installed, log in to the portal again.
- Submit the plant installation details.
- Apply for the Net Meter, which enables you to measure the energy flow.
Step 5: Receive the Commissioning Certificate
- Once the installation is inspected and verified by DISCOM, the portal will generate a Commissioning Certificate.
- Ensure all inspections are completed successfully.
Step 6: Submit Bank Details for Subsidy
- After receiving the commissioning report, upload your Bank Account Details and a Cancelled Check through the portal.
- Your subsidy amount will be directly credited to your bank account within 30 days.
Capacity Calculator for Rooftop Solar Plant Under PM Surya Ghar: Muft Bijli Yojana
The calculator will provide the recommended capacity of the solar plant based on your inputs, helping you make an informed decision for your rooftop solar installation. Check the complete process below:
Step 1: Visit the Official Website
- Go to the official PM Surya Ghar portal.
- On the main page, locate the “Calculator“ option and click on it.
Step 2: Enter Basic Details
- Select Your State from the dropdown menu.
- Choose Your Category (e.g., residential, commercial, etc.).
- Enter your Average Monthly Electricity Bill (in Rs).
Step 3: Provide Additional Information (Optional)
For more accurate calculations, provide the following optional details:
- Total Available Rooftop Area (in square meters or square feet).
- How Much You Want to Invest (in Rs).
- Required Solar Plant Capacity (in kW).
- Sanction Load (in kW).
Step 4: Calculate
- After entering all the necessary information, click on the “Calculate” button.
Vendor Selection and Installation Process
Choose Your Vendor:
- The portal lists registered and verified vendors.
- You can compare vendors based on ratings, costs, and services offered.
- You are free to finalize a vendor and negotiate rates directly, ensuring no involvement of middlemen or pre-fixed rates.
Decide on Terms and System Design:
- Discuss with the vendor about the type of solar system, its quality, design, and any additional features you may need.
- Once finalized, you can sign a mutual agreement with the vendor outlining the terms. A sample agreement is available for reference.
Minimum Quality Standards:
- All vendors are required to meet minimum technical standards for solar systems.
- This ensures you receive high-quality and durable systems. These standards will also be verified by your electricity supplier during inspections.
Step-by-Step Installation and Verification
Approval for Installation:
- For solar systems up to 10 kW, you don’t need technical feasibility approval in most cases, as per government rules.
- However, in some states, you may need to submit documents for initial approval.
Vendor Installation:
- The chosen vendor will install the system, perform safety checks, and train you on its maintenance.
- After installation, the system details must be updated on the portal, along with photos and documents.
Inspection by Electricity Supplier (DISCOM):
- Your electricity supplier will inspect the system to ensure it meets all guidelines and is installed correctly.
- They’ll also handle agreements like net metering (where excess power generated is sent to the grid).
Meter Installation:
- A special meter (like a net meter or smart meter) will be installed to measure your electricity usage and generation.
- You can either procure the meter yourself or get it through your DISCOM.
Financial Assistance and Subsidies
Subsidy (Central Financial Assistance):
- After inspection and approval, you will receive a subsidy directly into your bank account or loan account.
- The subsidy will be processed within 15 days of approval by your electricity supplier.
E-Token for Subsidy Tracking:
- After applying, an e-token will be issued to track your subsidy amount. Once your system is inspected and approved, the subsidy amount will be credited to your account.
Loan Options:
- The portal offers loan products from various banks to help you finance your solar system at low interest rates.
- Loans are available for systems up to 3 kW as well as larger systems. The subsidy will also be adjusted against any outstanding loan amount.
Central Financial Assistance (CFA) Framework for PM Surya Ghar: Muft Bijli Yojana
Eligibility
To qualify for CFA, residential rooftop solar systems must:
- Be grid-connected and associated with a residential power connection.
- Be installed on roofs, terraces, balconies, or elevated structures.
- Adhere to approved metering mechanisms such as Group Net Metering and Virtual Net Metering.
CFA Structure
The Central Government will provide CFA as per the following structure:
Residential Segment | CFA Rate |
First 2 kWp of RTS capacity | 60% of benchmark cost |
Additional RTS capacity up to 1 kWp | 40% of benchmark cost |
Additional RTS capacity beyond 3 kWp | No additional CFA |
Group Housing Societies/Residential Welfare Associations (up to 500 kWp, @3 kWp/house) | As per above rates |
Illustrations:
- A household installing a 1.5 kWp system will receive CFA of:
- ₹30,000 × 1.5 = ₹45,000
- A household installing a 2.5 kWp system will receive CFA of:
- (₹30,000 × 2) + (₹18,000 × 0.5) = ₹69,000
- An RWA installing 100 kWp capacity for 20 households will receive: (Lower of (20×3 kW), 100 kW) = ₹ 10,80,000)
- ₹18,000 × 60 kWp = ₹10,80,000
- An RWA installs a capacity of 100 kW, with 50 households, it will be eligible for a CFA
of ₹ 18,000×100 kW (Lower of (50×3 kW), 100 kW)= ₹ 18,00,000
Benchmark Costs
- ₹50,000/kW for the first 2 kW of RTS capacity.
- ₹45,000/kW for additional capacity.
- Higher benchmarks apply to special category states such as Uttarakhand, Himachal Pradesh, J&K, and the Northeast.
Additional Provisions
- State Subsidies: States/UTs may supplement CFA with additional subsidies, subject to alignment with the scheme’s guidelines.
- Domestic Content Requirement (DCR): Solar modules must be domestically manufactured to qualify for CFA.
- Pre-existing Installations: Households with prior CFA-supported installations can claim additional CFA for expanded capacities up to 3 kW.
Key Features of the PMSG National Portal
User-Friendly Platform:
- The portal integrates state and national systems, offering tools to help consumers understand the costs, benefits, and technical details of solar systems.
- Consumers can raise complaints, track installations, and view vendor profiles easily.
Real-Time Generation Data:
- Consumers will be able to track how much electricity their solar system generates. This data will also help improve the planning and maintenance of rooftop solar installations.
Limit on Applications:
- The scheme is budget-limited and will accept only up to 1 crore active applications.
- Once the application is dormant (inactive for a certain period), consumers can reactivate it later.
Additional Features for Consumers
Non-Metered Systems:
- Even if your system doesn’t feed excess power back to the grid (like hybrid systems with batteries), it may still qualify for a subsidy.
“Give It Up” Option:
- If you don’t want to avail of the subsidy but still want to use the portal’s services, you can opt-out and enjoy streamlined processes and financing options.
Aims and Objectives of PM Surya Ghar: Muft Bijli Yojana
The PM Surya Ghar: Muft Bijli Yojana is guided by the following key objectives:
- Wide-scale Adoption: Achieve the installation of 1 crore rooftop solar systems in the residential sector.
- Energy Affordability: Provide free or low-cost electricity up to 300 units per month to 1 crore households through rooftop solar systems.
- Environmental Impact: Generate 1,000 billion units of renewable electricity, reducing CO2 emissions by 720 million tons over 25 years.
- Ecosystem Development: Foster a robust ecosystem for rooftop solar projects, including regulatory support, manufacturing, supply chain, and maintenance networks.
- Economic Growth: Boost local economies and create employment opportunities while enhancing energy security.
- Global Commitments: Contribute to India’s climate goals, particularly its Nationally Determined Contributions (NDCs) at the UNFCCC.
Transition from Existing Schemes
The PM Surya Ghar initiative subsumes the Grid Connected Rooftop Solar Phase II Programme, which was launched in 2019. Key transition highlights include:
- Budget Allocation: The CFA and other releases under PM Surya Ghar will utilize the budgetary outlays of the Phase II programme until the new scheme’s dedicated budget becomes operational.
- Integration of Guidelines: Ongoing projects under the Phase II programme will adhere to its existing guidelines but will receive funding through the new scheme’s budget.
- Enhanced Support: Additional CFA provisions for expanded rooftop solar installations beyond the Phase II programme’s scope.
Benefits and Socioeconomic Impact
Cost Savings and Affordability
- The scheme offers significant cost reductions for households adopting rooftop solar systems, ensuring affordable and sustainable electricity.
Environmental Benefits
- By generating 1,000 billion units of clean electricity, the scheme contributes to substantial reductions in greenhouse gas emissions, aligning with global climate commitments.
Economic Development
- Local economies stand to benefit from increased manufacturing, supply chain activities, and maintenance services, fostering job creation and skill development.
Energy Independence
- Empowering households to generate their electricity enhances energy security and reduces dependence on conventional energy sources.
The PM Surya Ghar: Muft Bijli Yojana is a game-changer in India’s renewable energy landscape. By combining financial incentives, environmental sustainability, and economic growth, the scheme aims to revolutionize energy consumption in the residential sector. With the potential to impact millions of households, the initiative represents a significant stride toward achieving India’s vision of a greener and more self-reliant future.