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Business News/ Industry / Energy/  Govt's rooftop solar scheme gets a name; investment pegged at 75,000 cr
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Govt's rooftop solar scheme gets a name; investment pegged at ₹75,000 cr

PM Modi reiterated the government's commitment to providing 300 units of free power to 10 million beneficiary households.

The plan to come up with a new scheme was announced on 22 January by the Prime Minister. The scheme was then expected to be named ‘Pradhan Mantri Suryodaya Yojana’.(Image: Pixabay)Premium
The plan to come up with a new scheme was announced on 22 January by the Prime Minister. The scheme was then expected to be named ‘Pradhan Mantri Suryodaya Yojana’.(Image: Pixabay)

New Delhi: The government on Tuesday officially launched the rooftop solar scheme that was announced in the interim budget. Named PM Surya Ghar: Muft Bijli Yojana, the scheme is projected to entail an investment of 75,000 crore.

Prime Minister Narendra Modi, while announcing the launch of the scheme on social media platform X, reiterated the government's commitment to providing 300 units of free power to 10 million beneficiary households.

“In order to further sustainable development and people’s well-being, we are launching the PM Surya Ghar: Muft Bijli Yojana. This project, with an investment of over Rs. 75,000 crores, aims to light up 1 crore households by providing up to 300 units of free electricity every month," he said in a tweet.

The focus on free electricity is particularly relevant with the general elections around the corner. To popularize the scheme at the grassroots, urban local bodies and panchayats will be incentivized to promote rooftop solar systems in their jurisdictions, he said, claiming that the scheme will lead to more income, lower power bills and employment generation for people.

In another tweet, Modi said “From substantive subsidies, which will be given directly to people’s bank accounts, to heavily concessional bank loans, the Central Government will ensure that there is no cost burden on the people. All stakeholders will be integrated into a National Online Portal which will further convenience," he said.

Presenting the interim budget for FY25 on 1 February, union finance minister Nirmala Sitharaman had said that the 10 million beneficiaries of the new scheme would be able to get 300 units of free power through the rooftop solar installations, resulting in an annual saving of 15,000-18,0000 per year.

Union finance secretary TV Somanathan after the presentation of the budget said that the government has provisioned 10,000 crore for rooftop solar in the budget.

The plan to come up with a new scheme was announced on 22 January by the Prime Minister. The scheme was then expected to be named ‘Pradhan Mantri Suryodaya Yojana’.

Speaking to reporters on 2 February, union minister for new and renewable energy R.K. Singh said the subsidy for rooftop solar installations had been hiked to about 60% under the new scheme from the current 40%.

The scheme will be implemented through Special Purpose Vehicles (SPVs) established by central public sector enterprises (CPSEs) designated for each state. Singh had said that the SPVs would take the loans and the excess unit of power that a household generates would go towards paying off the loan. The loan tenure is expected to be 10 years.

Post the 10-year period when the loan is repaid, the rooftop solar infrastructure would be transferred to the household, which can then sell the excess power to the discoms, Singh had said.

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ABOUT THE AUTHOR
Rituraj Baruah
Rituraj Baruah is a senior correspondent at Mint, reporting on housing, urban affairs, small businesses and energy. He has reported on diverse sectors over the last six years including, commodities and stocks market, insolvency and real estate. He has previous stints at Cogencis Information Services, Indo-Asian News Service (IANS) and Inc42.
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Published: 13 Feb 2024, 05:19 PM IST
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