Cabinet Greenlights Solar Initiative to Offer 300 Units of Complimentary Power per Month to One Crore Households

In its ongoing commitment to advancing renewable energy, the government has sanctioned a program designed to provide financial support of up to ₹78,000 to one crore households for the installation of rooftop solar systems. These systems will enable participating households to receive up to 300 units of electricity per month at no cost.

During a press briefing, Union Minister Anurag Thakur announced on Thursday that the Union Cabinet has given its approval to the PM Surya Ghar: Muft Bijli Yojana. Launched by Prime Minister Narendra Modi on February 13, the scheme will entail a total outlay of ₹75,021 crore.

The minister underscored that the scheme is intended not only to benefit households and bolster domestic solar energy component manufacturing but also to generate employment opportunities for approximately 17 lakh individuals.

Under the scheme’s provisions, central financial assistance (CFA) will be extended for residential rooftop solar installations. According to an official statement, households will receive 60% of the system cost for 2-kilowatt (kW) systems, with an additional 40% of the cost covered for systems ranging from 2 to 3 kilowatts. The CFA will be capped at 3 kW.

“The prevailing benchmark prices equate to a subsidy of ₹30,000 for a 1 kW system, ₹60,000 for a 2 kW system, and ₹78,000 for a 3 kW system or larger,” the statement elucidated.

Consumer Benefits

The government highlighted that participating households will not only realize savings on their electricity bills but also have the opportunity to generate additional income by selling surplus power to electricity distribution companies (discoms). A 3 kW system, it noted, could yield over 300 units of electricity on average per month for a household.

“Of the approximate total cost of ₹1.45 lakh for a 3 kW rooftop solar installation, ₹78,000 will be provided as a subsidy by the Central government. For the remaining balance, households may avail themselves of low-interest loans from banks. By availing of 300 units free of charge, consumers will accrue savings on their electricity expenses. Any surplus units can be sold to discoms through net metering,” elaborated Mr. Thakur.

“Assuming a household currently incurs expenses of ₹1,875 per month, with an EMI of ₹610, they stand to save ₹1,265 monthly on electricity bills. This translates to savings of ₹15,000 per month for one crore households,” the minister further elaborated.

Households can submit subsidy applications via the National Portal and select suitable vendors for the installation of rooftop solar systems. The National Portal will facilitate informed decision-making by providing pertinent information such as system specifications, a benefits calculator, and vendor evaluations.

To facilitate the installation of these systems, households will have access to collateral-free, low-interest loan products, currently at approximately 7%, for systems with capacities of up to 3 kW.

Shruti Suman

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