It approved a scheme aimed at increasing the share of solar rooftop capacity and empowering residential households to generate their electricity. The government, through the PM-Surya Ghar: Muft Bijli Yojana, has set a target to incentivize Panchayati Raj institutions to popularize rooftop solar installations within rural communities.
In a July 8 letter, additional secretary in the Panchayati Raj Ministry Chandra Shekhar Kumar wrote to state departments, asking them to share the operational guidelines of the scheme with PRIs, State Panchayati Raj Departments, and other stakeholders. He insisted on necessary actions being taken to ensure there was no hitch in the implementation of the scheme.
Overview of the Scheme
PM-Surya Ghar: Muft Bijli Yojana the scheme was rolled out in February 2024 with a Rs 75,021 crore outlay that will be implemented till FY 2026-27. It plans to provide free electricity for up to 300 monthly units for one crore households by installing rooftop solar panels. It covers a Central Financial Assistance of 60 percent of the system cost for 2 kW systems and 40 percent of the additional system cost for systems between 2 kW and 3 kW capacity. The CFA shall be restricted to a maximum of 3 kW.
In effect, this would be a subsidy of ₹30,000 at benchmark prices prevalent today for a 1 kW system, ₹60,000 for 2 kW systems, and ₹78,000 for 3 kW systems or more: ministry guidelines on the PM Surya Ghar Yojana. The guidelines have also incorporated the provision where households can surrender the subsidy available under the PM Surya Ghar National Portal.
b. Incentives to Panchayati Raj Institutions
It encourages PRIs to promote rooftop solar installations in rural areas. Such institutions can adopt clean energy not only for environmental sustainability but also as a new source of revenue. This scheme has Rs 800 crore earmarked for developing a “model village” in every district for adopting rooftop solar. Another outlay of Rs 1,000 crore is taken under the scheme to incentivize local bodies to promote rooftop solar installations in their areas.
Financial and Ecological Impact
The Centre’s nod to the PM-Surya Ghar: Muft Bijli Yojana is aimed at enhancing the share of solar rooftop capacity in the energy mix. By empowering residential households with the capacity to generate their electricity, this plan caters to the increasing rural energy demand while shifting them from dependency on conventional sources of power.
These monetary incentives of the scheme work to make rooftop solar more accessible to rural households. Lowering the upfront cost barrier with financial assistance from the Centre will allow the households to undertake investment in the clean energy solution, which otherwise would have been too heavy on their pockets. This may spur heavy growth in the solar rooftop market, which would go a very long way to increase the country’s total capacity in renewable energy.
Role of State Governments
State governments play a very instrumental role in the successful implementation of PM-Surya Ghar: Muft Bijli Yojana. The Panchayati Raj Ministry has called for active involvement on the part of state departments with PRIs and other stakeholders to make sure that guidelines are clearly understood and followed up. Effective communication and coordination at the state and local body levels will be highly instrumental for this scheme.
States shall be proactive in propagating the benefits of rooftop solar installations to rural communities. States create awareness and support rural communities to drive high adoption rates, towards maximising the impact of this scheme.
Conclusion
PM-Surya Ghar: Muft Bijli Yojana is one such major initiative towards greater adoption of solar energy in rural India. With financial incentives and the roping of Panchayati Raj Institutions, this scheme would help residential households generate their electricity. Active participation by state governments and local bodies is needed for the successful implementation of the scheme.
This is not only a step towards fulfilling the need for energy, but also in an environmentally sustainable manner through reduction in dependence on conventional sources of energy. PM-Surya Ghar: Muft Bijli Yojana thus becomes a potential game-changer in rural energy consumption and one of the major milestones in India’s journey toward renewable energy.