Cabinet approves Rs 75,000 crore solar rooftop subsidy scheme

Briefing media after the Union Cabinet meeting, I&B Minister Anurag Thakur informed that approval has been given for the scheme for installing rooftop solar and providing free electricity up to 300 units every month for one crore households.

Autocar Pro News Desk By Autocar Pro News Desk calendar 29 Feb 2024 Views icon2925 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Cabinet approves Rs 75,000 crore solar rooftop subsidy scheme

The government on Thursday approved a rooftop solar scheme, PM-Surya Ghar: Mufti Bijli Yojna, with an outlay of Rs 75,021 crore, to provide up to Rs 78,000 subsidy for the installation of solar plants and 300 units free power for one crore households, PTI reported. 

Briefing media after the Union Cabinet meeting, I&B Minister Anurag Thakur informed that approval has been given for the scheme for installing rooftop solar and providing free electricity up to 300 units every month for one crore households.

“The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved PM-Surya Ghar: Muft Bijli Yojana with a total outlay of Rs 75,021 crore for installing rooftop solar and providing free electricity up to 300 units every month for one crore households,” an official statement said.

The Prime Minister launched the scheme on 13th February 2024.

The scheme provides a central financial assistance (CFA) of 60 per cent of system cost for 2 kW systems and 40 per cent of additional system cost for systems between 2 kW to 3 kW capacity. The CFA will be capped at 3 kW.

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.

The households will apply for subsidy through the National Portal and will be able to select a suitable vendor for installing rooftop solar.

Through this scheme, the households will be able to save electricity bills as well as earn additional income through sale of surplus power to DISCOMs. A 3 kW system will be able to generate more than 300 units a month on average for a household.

It is estimated that the scheme will create around 17 lakh direct jobs in manufacturing, logistics, supply chain, sales, installation, O&M and other services, PTI noted.

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