Rooftop Solar scheme renamed with Rs 750 billion allocation

16 Feb 2024 CW Team

Prime Minister Narendra Modi declared the rooftop solar scheme, PM Surya Ghar Muft Bijli Yojana, with an investment exceeding Rs 750 billion. PM Modi stated on the microblogging platform X that, "In order to further sustainable development and people's well-being, the PM Surya Ghar: Muft Bijli Yojana is being launched."

The scheme, initially introduced on January 22 by the Prime Minister as Pradhan Mantri Suryodaya Yojana, aims to illuminate 10 million households, providing them with free electricity of up to 300 units monthly. It envisions substantial subsidies directly credited to the bank accounts of consumers and heavily concessional bank loans. He stated, "The central government will ensure that there is no cost burden on the people. All stakeholders will be integrated into a National Online Portal, which will further enhance convenience."

The interim budget had also proposed the rooftop solar segment, stating that 10 million households would receive up to 300 units of free electricity every month under the scheme initially proposed as Pradhan Mantri Suryodaya Yojana, with an outlay of Rs 100 billion. To promote the scheme, urban local bodies and panchayats will be encouraged to endorse rooftop solar installations in their jurisdictions, as per the Prime Minister's announcement.

Modi mentioned that the scheme would result in increased income, reduced power bills, and employment generation. Following the PM's announcement of the scheme in January, Power Minister RK Singh had stated that the Centre was aiming to raise the subsidy for rooftop solar projects for households to 60% of the capital cost from the current 40%, targeting the lower and lower-middle class. Singh also noted that all power public sector undertakings (PSUs) would implement the program by forming special purpose vehicles.

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