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.
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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.
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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.
July 25, 2024
