The Union Cabinet has approved the PM-Surya Ghar scheme with a total outlay of Rs 750 billion. The scheme will provide a Central Financial Assistance (CFA) of 60% of system cost upto capacities of 2 kW and 40% of additional system cost for systems between 2 to 3 kW capacity. The CFA will be capped at 3 kW capacity. At current prices, this means a subsidy of Rs 30,000 for 1 kW systems, Rs 60,000 for 2 kW systems and Rs 78,000 for 3 kW systems or higher.
Households can avail collateral-free loans around 7% interest for installing rooftop solar systems up to 3 kW under the scheme. The scheme is estimated to result in addition of 30 GW of rooftop solar capacity and 1.7 million direct jobs.
Other features of the scheme include development of a model solar village in each district of the country, provision of a component for payment security for renewable energy service company (RESCO) based models as well as a fund for innovative projects in RTS. Furthermore, urban local bodies and panchayati raj institutions can also avail the incentives for promoting RTS installations in their areas.
