The Centre has launched the Pradhan Mantri Suryoday Yojna or Prime Minister Solar Scheme, targeting one crore households with monthly electricity consumption of up to 300 units. Under this initiative, eligible households will receive free rooftop solar installations, announced Union Power and New and Renewable Energy Minister RK Singh.
The scheme, introduced in the Interim Budget presented by Finance Minister Nirmala Sitharaman on February 1, aims to equip households with rooftop solar systems, facilitating substantial monthly savings on electricity bills.
To execute the program across all States and Union territories, the Central Government has enlisted eight central public sector undertakings or CPSUs. These CPSUs will receive increased subsidies of up to 60 per cent and will secure the remaining funding through loans from institutions like REC Limited.
RK Singh elucidated that the excess solar power generated will contribute to repaying the CPSUs’ loans, with a repayment period of up to 10 years. After loan settlement, households will gain ownership of the solar infrastructure and have the opportunity to sell surplus power to discoms.
While the program primarily targets households consuming up to 300 units per month, households exceeding this threshold can still benefit from enhanced subsidies for rooftop solar installation, albeit at their own expense.
Moreover, the government plans to enhance consumer awareness by rating vendors and solar panels for quality assurance, alongside providing low-cost financing options for rooftop solar.
