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Written by: JK Monitor News Network

Published: 01 March 2024

How You Can Apply for and Get Subsidy under the Roof Top Solar Scheme

What is PM Surya Ghar Muft Bijlee Yojana about? 

PM Surya Ghar Muft Bijlee Yojana is a Central Scheme that aims to provide free electricity to one crore households in India, who opt to install roof top solar electricity unit.  The households will be able to get 300 units of electricity free every month.  It is an ambitious scheme approved by the Union Cabinet on February 29th, with an outlay of Rs.75,021 crore. 

How does PM Surya Ghar Muft Bijlee Yojana work ?

The scheme provides for a subsidy of 60% of the solar unit cost for systems up to 2 kW capacity and 40 percent of additional system cost for systems between 2 to 3 kW capacity.  The subsidy has been capped at 3 kW capacity.  

At current benchmark prices, this will mean Rs 30,000 subsidy for 1 kW system, Rs 60,000 for 2 kW systems and Rs 78,000 for 3 kW systems or higher. 

Who are eligible to apply for the Scheme?

How to apply for PM Surya Ghar Muft Bijli Yojana?

First, the interested consumer has to register on the national portal www.pmsuryaghar.gov.in. This has to be done by selecting the state and the electricity distribution company. The National Portal will assist the households by providing relevant information such as appropriate system sizes, benefits calculator, vendor rating etc. The consumers can choose the vendor and the make of the Roof Top Solar unit they wish to get installed. 

Can a consumer avail of loan facility to finance the solar unit?

Yes. Households will be able to access collateral-free low-interest loan products of around 7% at present for installation of residential RTS systems up to 3 kW. The interest rate has been pegged at 0.5% above the prevailing Repo Rate decided by the Reserve Bank of India from time to time.  In the event of Repo Rate, which is 6.5% at present, getting reduced to say 5.5%, the effective interest rate for consumer will become 6% instead of the current 7%. 

What is the step by step procedure for availing of subsidy? 

Step 1

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Step 6

Why should a household opt for the Roof Top Solar Scheme? 

Simple economics.  The households will be able to save electricity bills as well as earn additional income through sale of surplus power to DISCOMs.

PM Surya Ghar Muft Bijlee Yojana promises an assured saving of approximately Rs 15,000 in a year for a household consuming up to 300 units a month, by installing Roof Top Solar unit of 3 kW capacity.  Such a household, by generating its own electricity will save on electricity bill approximately Rs 1,800 – Rs 1875. 

Even after deducting the EMI of Rs 610 on the loan availed for financing the solar unit, the saving would be around Rs 1,265 per month or approximately Rs 15,000 in a year. The savings for the households not availing of loan will be even higher. Furthermore, by opting for renewable energy, it is an opportunity to contribute towards a greener planet.