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PM-Surya Ghar scheme receives cabinet approval

editor by editor
March 2, 2024
in News
Reading Time: 1 min read
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Rooftop Solar
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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.

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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.

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