PM Surya Ghar Muft Bijli Yojana, Features, Benefits

PM Surya Ghar Muft Bijli Yojana was launched by the Indian government that aims to provide free electricity to households. Check here the key features and benefits of PM-Surya Ghar Yojana.

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Context: The Union Cabinet approved a ₹75,021-crore package for the ‘PM-Surya Ghar: Muft Bijli Yojana’ (PM Free Electricity scheme) to promote rooftop solar (RTS) installations in India.

About ‘PM Surya Ghar Muft Bijli Yojana’ (PM Free Electricity Scheme)

Free Electricity: The government will provide 300 units of free electricity per month to 1 crore households, aiming to light up their homes.
Rooftop Solar Promotion: Urban local bodies and Panchayats will be encouraged to promote rooftop solar systems in their areas. This aligns with the free electricity provision, potentially utilising solar power as the source.
Financial Support: The government guarantees no financial burden on the beneficiaries. This will likely involve subsidies deposited directly into bank accounts and offering affordable loans to help cover any costs associated with the program.
- Central Financial Assistance (CFA):
  - 60% subsidy for 2 kW systems
  - 40% additional subsidy for systems between 2-3 kW (capped at 3 kW)
  - This translates to:
    - ₹30,000 for a 1 kW system
    - ₹60,000 for a 2 kW system
    - ₹78,000 for 3 kW or higher systems
- Application and Selection:
  - Apply for subsidies through a National Portal.
  - Portal provides information on system size, benefits, and vendor ratings.
  - Choose a suitable vendor for installation.
- Financing: Access collateral-free, low-interest loans (around 7%) for installation up to 3 kW.

Additional Features of PM Surya Ghar Muft Bijli Yojana

Model Solar Villages: Developed in each district to showcase rooftop solar adoption in rural areas.
Incentives for Local Bodies: Encourage the promotion of rooftop solar installations in their areas.
Payment Security: Supports payment security for RESCO models (Renewable Energy Service Company).
Innovation Fund: Dedicated funds for innovative projects in rooftop solar technology.

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Benefits of PM Surya Ghar Bijli Yojana

The PM Surya Ghar Bijli Yojana scheme anticipates several advantages, including:

Household Savings: Households can potentially save ₹15,000 to ₹18,000 annually through free electricity and selling surplus solar power back to the grid.
Electric Vehicle Charging: The increased adoption of solar power could support the charging of electric vehicles, promoting a shift towards sustainable transportation.
Job Creation: Opportunities for entrepreneurs and skilled youth are expected to arise in areas like supplying, installing, and maintaining rooftop solar systems.

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