Union Finance Minister launched the Pradhan Mantri-Surya Ghar Muft Bijli Yojana to boost rooftop solar installations in India.

About Surya Ghar Muft Bijli Yojana 

• It was launched in February 2024.  
• Nodal Ministry: The Ministry of New and Renewable Energy (MNRE). 
• Objective: To promote rooftop solar installations in India.
  • Provide one crore households with free electricity up to 300 units per month.
• Implementation:
  • Incentive: DISCOM will earn incentives for increasing grid connected rooftop solar capacity beyond an established baseline.
  • Staff recognition: There is a reward system to acknowledge and motivate field staff of DISCOM. 
• Budget Allocation: A ₹75,021-crore package was approved earlier this year, now tweaked to a ₹75,000-crore scheme.
• Subsidies:
  • The Centre will fund 60% of the cost for 2 kW systems.
  • 40% of the cost will be covered for systems from 2-3 kW capacity.

Enroll now for UPSC Online Course

Rooftop Solar panels?

• Rooftop solar involves installation of solar panels on the roof to produce electricity from sunlight. 
• Main components
  • Solar Modules: Capture sunlight and convert it into electricity. 
  • Solar Inverter: Convert the generated DC into AC. 
• Current Solar Capacity in India
  • 2023: In 2023, India’s solar power capacity was 70,096 megawatts (MW).
  • Top performing states:  Gujarat, Rajasthan, Tamil Nadu, and Karnataka.
  • 2024: According to NISE, India’s solar energy potential is around 748 GW. 

Benefits of the scheme

• Financial Savings: Households can save up to ₹15,000-18,000 crore annually through free solar electricity and by selling surplus to distribution companies.
• Promotion of Renewable Energy: The scheme aims to accelerate the adoption of rooftop solar power, contributing to India’s renewable energy goals.
• Electric Vehicle Charging: Solar electricity can be used to charge electric vehicles.
• Entrepreneurship Opportunities: Numerous vendors will benefit from supply and installation services.
• Employment Opportunities: The scheme will create jobs for youth skilled in manufacturing, installation, and maintenance.

Check Out UPSC CSE Books From PW Store

Challenges and Considerations

• Financial Viability: The scheme’s long-term financial sustainability is a concern, given the substantial government expenditure involved.
• Implementation Challenges: Ensuring efficient distribution of subsidies, timely installation of solar systems, and addressing potential corruption risks are critical for the scheme’s success.
• Grid Integration: Integrating large-scale rooftop solar generation into the existing grid requires careful planning and infrastructure development.
• Limited Impact: The scheme’s focus on households might not significantly impact India’s overall renewable energy targets, as commercial and industrial rooftops offer greater potential.
• Policy Consistency: The government needs to maintain consistent policies and support for the solar industry to encourage long-term investments.

DOWNLOAD PDF