PM Surya Ghar Scheme Crosses 30 Lakh Rooftop Installations

Prelims: (Economy + CA)
Mains: (GS 3 – Energy Security, Renewable Energy Transition; GS 2 – Welfare Schemes & Governance)

Why in the News?

The Union Minister recently announced that rooftop solar installations under the PM Surya Ghar: Muft Bijli Yojana have crossed 30 lakh households since its launch in February 2024.

The milestone highlights accelerating adoption of decentralised solar power across India.

pm-surya-ghar-scheme

Background and Context

India has committed to expanding non-fossil fuel capacity and promoting distributed renewable energy as part of its climate and energy transition goals.

Rooftop solar is seen as a key pillar in:

  • Reducing household electricity bills.
  • Lowering dependence on fossil fuels.
  • Strengthening energy security.
  • Easing pressure on DISCOMs during peak demand.

The PM Surya Ghar scheme was launched in 2024 to accelerate rooftop solar penetration in the residential sector.

About PM Surya Ghar: Muft Bijli Yojana

The PM Surya Ghar: Muft Bijli Yojana aims to provide free electricity to households by promoting rooftop solar installations.

Core Objective

  • Enable households to generate their own electricity.
  • Reduce monthly power bills.
  • Promote clean and decentralised energy production.

Subsidy Structure

The scheme provides financial assistance as follows:

  • 60% subsidy on solar unit cost for systems up to 2 kW capacity.
  • 40% subsidy on additional system cost for systems between 2–3 kW capacity.
  • Subsidy capped at 3 kW capacity per household.

This structure ensures affordability while encouraging optimal system sizing.

Additional Components

1. Model Solar Village

  • Development of one Model Solar Village in each district.
  • Demonstration of decentralised renewable energy ecosystems.

2. Incentives to Local Bodies

  • ₹1,000 incentive per rooftop solar installation.
  • Applicable to:
    • Urban Local Bodies (ULBs).
    • Panchayati Raj Institutions (PRIs) at Gram Panchayat level.

This promotes grassroots-level ownership and monitoring.

Implementation Mechanism

National Level

  • Implemented through a National Programme Implementation Agency (NPIA).

State Level

  • State Implementation Agencies (SIAs) oversee execution.
  • DISCOMs act as SIAs.

Role of DISCOMs

  • Ensure availability of net meters.
  • Conduct timely inspections.
  • Commission installations.
  • Facilitate grid connectivity.

DISCOMs receive performance-linked incentives for installing additional grid-connected rooftop solar capacity beyond baseline levels.

Eligibility Criteria

A household must:

  1. Be an Indian citizen.
  2. Own a house with a suitable rooftop.
  3. Have a valid electricity connection.
  4. Not have availed any other solar subsidy.

Significance of the Scheme

1. Energy Security

  • Reduces peak demand pressure on the grid.
  • Encourages decentralised energy generation.

2. Climate Goals

  • Supports India’s renewable energy targets.
  • Contributes to emissions reduction.

3. Financial Relief

  • Lowers electricity bills for households.
  • Provides long-term cost savings.

4. DISCOM Reform

  • Promotes distributed generation.
  • Improves demand-side management.

Challenges

  • Financing constraints for households despite subsidy.
  • DISCOM resistance due to revenue loss concerns.
  • Net-metering policy inconsistencies across states.
  • Technical limitations in urban high-rise buildings.

Way Forward

  1. Streamline subsidy disbursal processes.
  2. Strengthen net-metering frameworks nationwide.
  3. Expand awareness campaigns.
  4. Integrate rooftop solar with battery storage.
  5. Ensure DISCOM financial compensation mechanisms.

FAQs

1. What is PM Surya Ghar: Muft Bijli Yojana?

A central scheme promoting rooftop solar installations to provide free electricity to households.

2. What subsidy does it provide?

60% subsidy up to 2 kW and 40% for 2–3 kW systems, capped at 3 kW.

3. Who implements the scheme?

At the national level by NPIA and at the state level by DISCOMs as SIAs.

4. What is a Model Solar Village?

A demonstration village in each district showcasing decentralised solar adoption.

5. Why is rooftop solar important?

It reduces electricity bills, strengthens energy security, and supports climate goals.