How PM Surya Ghar Muft Bijli Yojana is different from the previous rooftop solar scheme

The new scheme caps the total subsidy for systems larger than 3 kW at Rs 78,000.

On January 22, Prime Minister Narendra Modi said his first decision after returning from Ayodhya following the consecration ceremony at the Ram temple would be to launch a new rooftop solar scheme to be implemented in 10 million houses across the country.

Soon after, Finance Minister Nirmala Sitharaman said in the Interim Budget on February 1 that the new scheme could result in savings of Rs 15,000-18,000 annually for households that install rooftop solar systems.

On February 13, PM Modi renamed the new rooftop solar scheme as 'PM Surya Ghar: Muft Bijli Yojana'. He said the initiative, with an investment of over Rs 75,000 crore, would provide up to 300 units of free electricity every month.

Also Read - Tata Power will be a leading supplier for PM Rooftop Solar Scheme: CEO Praveer Sinha

To be sure, a residential rooftop solar scheme was already in place, which has now been upgraded with new guidelines and incentives. The Ministry of New and Renewable Energy (MNRE) had launched the old 'Rooftop Solar Programme Phase-II' on March 8, 2019, with the objective of achieving 4,000 MW of rooftop solar capacity in the residential sector by providing subsidy or central financial assistance. As of November 2023, the capacity installed under Phase-II of the scheme was 2,651.10 MW.

Moneycontrol tells you all about the new rooftop solar scheme and how it differs from the old programme.

Subsidy difference

The good news is that the government has increased subsidies under the PM Surya Ghar: Muft Bijli Yojana by at least 67 percent from the previous rooftop solar scheme.

An exclusive comparison of subsidies under the old and new rooftop solar schemes. Source: MNRE

As per MNRE data accessed by Moneycontrol, the minimum subsidy for anyone installing a 1-kW rooftop solar system under the new scheme will be Rs 30,000, an increase from Rs 18,000 earlier.

For those installing a 2-kW system, the new subsidy will be Rs 60,000, compared with Rs 36,000 (Rs 18,000 per kW) earlier.

Households installing a rooftop solar system of 3 kW will get a subsidy of Rs 78,000 instead of Rs 54,000 under the old scheme. The new scheme caps the total subsidy for systems larger than 3 kW at Rs 78,000.

How to apply for PM Surya Ghar: Muft Bijli Yojana

First, the interested consumer has to register on the portal www.pmsuryaghar.gov.in. This has to be done by selecting the state and the electricity distribution company (discom). One will also have to enter the electricity consumer number, mobile number and email id.

Once registered, one can login with the consumer number and mobile number. The consumer can apply for a rooftop solar by filling the form on the portal. That being done, the consumer will have to wait for feasibility approval from the local discom.

"Once you get the feasibility approval install the plant by any of the registered vendors in your discom," the government said. The list of empanelled vendors is on the portal.

After the installation, the consumer has to submit the plant details and apply for a net meter. Following installation of the net meter and inspection by the discom, a commissioning certificate will be generated on the portal. On receiving the commissioning report, the consumer should submit the bank account details and a cancelled cheque through the portal. The consumer will receive the subsidy in their bank account within 30 days.

Low-income houses may get free rooftop solar power

As per Union minister for power and new and renewable energy RK Singh, the government will identify households that consume up to 300 units of electricity a month for the new rooftop solar scheme. More importantly, such households may not have to pay for solar installations on their rooftops. Singh said those who were allotted low-income houses under the Pradhan Mantri Awas Yojna could be considered.

"We will also go beyond Pradhan Mantri Awas Yojna to identify houses that consume up to 300 units electricity a month. The scheme is being designed in such a way that such households will not have to pay anything for the rooftop solar installations," the minister told reporters on February 2.

However, MNRE officials said the system is not yet final and could change because modalities of the scheme are still being worked out.

The government has appointed eight central public sector undertakings (CPSUs) to implement the scheme in 10 million households across states and union territories.

While households can get solar rooftop systems installed under the new scheme and claim subsidy, low-income households will be provided systems by the CPSUs. In their case, the subsidy will go to the CPSU for installing the system and the remaining funding will be borne through loans by the CPSU.

Once the solar power system is installed, a low-income household can get up to 300 units of free electricity every month through the power generated on their rooftops.

Eligibility

Earlier this month, the MNRE clarified that residential rooftop solar applications submitted before February 13, 2024, will not be eligible for central financial assistance under the new scheme. They will be eligible for subsidies only under the old regime.