Interim Budget promises up to 300 units monthly free electricity to households from rooftop solar

The FM said solar installations is intended in one crore households through this scheme, which will result in savings of about 300 units of electricity per month for such homes

The Interim Budget presented by Finance Minister Nirmala Sitharaman on February 1 mentioned the recently announced rooftop solar scheme for households, also known as the 'Pradhan Mantri Suryoday Yojna'.

In her Budget speech, the FM said solar installations is intended in one crore households through this scheme, which will result in savings of about 300 units of electricity per month for such homes. On an annual basis, Sitharaman said the scheme could result in savings of Rs 15,000-18,000 annually for households that install rooftop solar systems.

Moneycontrol was the first to report on January 24 that the 'Pradhan Mantri Suryoday Yojna' would find a mention in the FM's Budget speech, in which enhanced subsidies under the scheme are also expected.

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"Through rooftop solarisation, one crore households will be enabled to attain up to 300 units free electricity every month. This scheme follows the resolve of the Prime Minister on the historic day of the consecration of Ram Mandir in Ayodhya," Sitharaman said in her Budget speech.

"Following benefits are expected: Savings up to Rs 15,000-18,000 annually for households from free solar electricity and selling the surplus to the distribution companies," she said.

State-owned REC Ltd has been appointed as the implementing agency for the scheme and the target is to have rooftop solar installations in one crore households within a year.

On January 22, Prime Minister Narendra Modi announced that his first decision after returning from Ayodhya following the consecration ceremony at the Ram temple was to launch the Pradhan Mantri Suryoday Yojna in in one crore houses.

To be sure, a residential rooftop solar (RTS) scheme is already in place, which is likely to be upgraded to the 'Pradhan Mantri Suryoday Yojna' with new guidelines and incentives. The Ministry of New and Renewable Energy (MNRE) launched the existing 'Rooftop Solar Programme Phase-II' on March 8, 2019 with an objective to achieve 4,000 MW of RTS capacity in the residential sector by providing subsidy or Central Financial Assistance (CFA). However, until November, 2023, the capacity installed under the RTS Phase-II subsidy scheme was 2651.10 MW.