The Indian Cabinet on Thursday, February 29, gave its nod to a comprehensive solar subsidy scheme aimed at facilitating the installation of solar rooftops for one crore individual households. The scheme, named "PM-Surya Ghar Muft Bijli Yojana," was initially launched by Prime Minister Modi on February 13, 2024.
The ambitious project, with a total outlay of ₹75,021 crore, aims to empower households by providing central financial assistance through substantial subsidies for solar power systems. Under the scheme, households opting for solar rooftops can benefit from a ₹30,000 subsidy for 1 kW systems, a minimum of ₹60,000 for 2 kW systems, and a maximum of ₹78,000 for 3 kW systems or higher.
#Cabinet approves PM-Surya Ghar: Muft Bijli Yojana for installing rooftop solar in One Crore households with a total outlay of Rs.75,021 crore
Prime Minister had launched the scheme on 13th February, 2024#CabinetDecisions pic.twitter.com/yZsnT3Fl6o— Manish Desai (@DG_PIB) February 29, 2024
To make the transition to solar power more accessible, households can apply for the subsidy through a national portal and choose a suitable vendor for the installation of rooftop solar. Moreover, to encourage participation, households can access collateral-free low-interest loans at approximately 7% for the installation process.
A key component of the initiative is the establishment of Model Solar Villages in each district. These villages will serve as role models for the seamless adoption of rooftop solar in rural areas, promoting sustainability and eco-friendly practices.
The benefits of the PM-Surya Ghar Muft Bijli Yojana are multifaceted. Households stand to save significantly on electricity bills, with the added advantage of earning additional income through the sale of surplus power to DISCOMs.
This initiative is expected to contribute to the addition of 30 GW of solar capacity through rooftop installations in the residential sector, significantly reducing carbon emissions by 720 million tonnes over the 25-year lifetime of the systems.
Furthermore, the scheme is poised to generate approximately 17 lakh direct jobs across various sectors, including manufacturing, logistics, supply chain, sales, installation, operation, and maintenance, providing a substantial boost to the country's economy.
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