PM Surya Ghar Muft Bijli Yojana: How you can apply for rooftop solar scheme and get subsidy

Solar

The Union Cabinet, led by Prime Minister Narendra Modi, on February 29 approved India's latest rooftop solar scheme - 'PM Surya Ghar: Muft Bijli Yojana' - with an outlay of Rs 75,021 crore.

The scheme provides a Central Financial Assistance (CFA) of 60 percent of the system cost for 2 kW systems and 40 percent of additional system cost for systems between 2 to 3 kW capacity. The CFA has been capped at 3 kW and Rs 78,000. At current benchmark prices, this means, consumers can get Rs 30,000 subsidy for a 1 kW rooftop solar system, Rs 60,000 for 2 kW systems and Rs 78,000 for 3 kW systems or higher.

How to apply for PM Surya Ghar Muft Bijli Yojana

First, the interested consumer has to register on the national 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.

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"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. The national portal will assist the households in their decision-making process by providing relevant information such as appropriate system sizes, benefits calculator, vendor rating etc.

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.

Financial assistance other than the subsidy

Households covered by the scheme will be given collateral-free, low-interest loans, which currently is around 7 percent for residential rooftop solar (RTS) systems up to 3 kW.

The interest rate has been pegged at 0.5 percent above the prevailing repo rate decided by the Reserve Bank of India (RBI) from time to time.  In the event of repo rate, which is 6.5% at present, getting reduced to say 5.5 percent, the effective interest rate for consumer will become 6 percent instead of the current 7 percent.

Through this scheme, 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 an average for a household.

Who are eligible to apply for the Scheme?

The applicant must be an Indian citizen. She or he must own a house with a roof that is suitable for installing solar panels. The household must have a valid electricity connection and it must not have availed of any other subsidy for solar panels.

Housing Societies

For common facilities of residents welfare associations (RWA) and Group Housing Societies, a subsidy of Rs 18,000 every KW for up to 500 KW will be given.

Besides, discoms will be incentivised to adjust to this new arrangement.

Does it make sense to opt for the rooftop solar scheme? 

It does. The households will be able to save electricity bills as well as earn additional income through sale of surplus power to discoms.

PM Surya Ghar Muft Bijli Yojana promises an assured saving of approximately Rs 15,000 in a year for a household consuming up to 300 units a month, by installing rooftop solar unit of 3 kW capacity. Such a household, by generating its own electricity will save on electricity bill approximately Rs 1,800 – Rs 1875.

Even after deducting the EMI of Rs 610 on the loan availed for financing the solar unit, the saving would be around Rs 1,265 per month or approximately Rs 15,000 in a year.  The savings for the households not availing of loan will be even higher. Furthermore, by opting for renewable energy, it is an opportunity to contribute towards a greener planet.

Currently, household RTS installations account for only about a quarter of the nearly 12 GW (1 GW is 1,000 megawatt) generated from RTS installations.

(This story has been updated with additional details on eligibility from the Ministry of New and Renewable Energy)