Decoding the PM Surya Ghar Muft Bijli Yojana

India is witnessing a transformative phase in its energy sector, propelled by ambitious initiatives aimed at promoting rooftop solar installations. In February, the government officially launched the PM Surya Ghar Muft Bijli Yojana, a groundbreaking scheme with an allocation of ?75,000 crore, targeting 1 crore beneficiaries across the nation.

This scheme, often hailed as a watershed moment for India's population-scale call to climate action, aims to provide 300 units of free power monthly to households, resulting in significant annual savings ranging from ?15,000 to ?1,80,000 per year.

The Surya Ghar Yojana represents a significant leap forward in India's transition to renewable energy. It builds upon previous initiatives, including a ?11,800 crore rooftop solar scheme launched in 2014, which aimed to achieve 40 gigawatts (GW) of solar energy capacity by 2022.

Despite facing challenges and a slow uptake, with only 10.4 GW capacity achieved by November 2023, the government remains committed to driving progress in this sector.

Under the new scheme, beneficiaries not only receive subsidies ranging from ?30,000 to ?78,000 for solar systems but also have access to collateral-free low-interest loans, further incentivizing the adoption of solar technology.

Industrial users are also reaping the benefits with significant reductions in electricity bills through net metering.

While the government's initiatives have garnered praise for their ambition, challenges remain. Issues such as cumbersome paperwork, difficulty in finding installation providers, and delays in subsidy disbursements have been cited as impediments to widespread adoption.

With highlights the importance of timely subsidy disbursements, emphasising the need for smoother implementation processes.Looking ahead, experts stress the importance of a fully integrated supply chain and emphasise the need for streamlining administrative procedures to ensure the success of these initiatives.

By addressing these challenges, the government aims to accelerate India's adoption of solar energy, moving closer to its green energy targets and a cleaner, more sustainable future for all.

Through schemes like the PM Surya Ghar Muft Bijli Yojana, India is not only revolutionising its energy landscape but also paving the way for a brighter, more sustainable future powered by renewable energy.

Thank you for joining us for another edition of our newsletter. We hope you found the information helpful and relevant. If you have any questions or would like to learn more about us, Please reach out to us at [email protected]

Writer: Soha Kapadia, CIO at Solnce Energy