The Ministry of New and Renewable Energy has announced that Indian prime minister unveiled the PM Surya Ghar Muft Bijli Yojana programme, aimed at providing free electricity through residential rooftop solar installations. With an investment exceeding Rs 750.21 billion, this programme seeks to provide electricity to 10 million households. The programme, initiated on February 13, 2024, encompasses every facet of the preceding Phase II, including its financial allotment and responsibilities.
The programme’s budget breakdown is as follows, with funds allocated to nine sub-components accordingly. Central financial assistance (CFA) for residential consumers is set at Rs 657 billion, while DISCOMs’ incentives amount to Rs 49.5 billion, covering expenses from previous programme. Moreover, local bodies receive incentives totaling Rs 10 billion, while each district’s model solar villages are allocated Rs 8 billion. Innovative projects receive Rs 5 billion, and Rs 1 billion is earmarked for the payment security mechanism. An amount of Rs 6.57 billion is allocated for capacity building, awareness and outreach programmes, and service charges, with each component set at 1 per cent of the CFA.
The implementation of the programme will be carried out via the national portal, and subsidies/CFA provided under the programme will be applicable to all applications submitted on or after February 13, 2024. The benchmark cost of 2 kW shall be divided 60 per cent among residential sectors with capacities up to or including 2 kW. 40 per cent of the benchmark cost of another 1 kW of capacity in the residential sector is eligible for reimbursement. No additional CFA will be extended to residential sectors beyond 3 kW. Group housing societies (GHS)/ residential welfare associations (RWA) are entitled to receive 40 per cent of the benchmark cost for each additional kW, for common facilities such as electric vehicle charging, up to 500 kW at 3 kW per house. Rooftop solar projects up to 2 kW in residential households are eligible for Rs 30,000 per kW or part thereof, based on the benchmark cost for FY 2023–2024 whereas additional capacity ranging from 2 kW to 3 kW qualifies for Rs 18,000 per Kw or part thereof. GHS/RWA are granted Rs 18,000 per kW as CFA.
