Cabinet okays PM Surya Ghar scheme, Rs 78,000 subsidy for 3 kW rooftop solar

The Cabinet has approved on Thursday PM-Surya Ghar: Muft Bijli Yojana with a total outlay of Rs 75,021 crore for installing rooftop solar and providing free electricity up to 300 units every month to one crore households. The scheme had been launched by Prime Minister Narendra Modi on February 13. The scheme provides a Central Financial Assistance (CFA) of 60 percent of system cost for 2 kW systems and 40 percent of additional system cost for systems between 2 to 3 kW capacity.

The CFA will be capped at 3 kW. At current benchmark prices, this will mean Rs 30,000 subsidy for 1 kW system, Rs 60,000 for 2 kW systems and Rs 78,000 for 3 kW systems or higher.

The households will apply for subsidy through the National Portal and will be able to select a suitable vendor for installing the rooftop solar. The National Portal will assist the households in their decision-making process by providing relevant information such as appropriate system sizes, benefits calculator, vendor rating etc. Households will be able to access collateral-free low-interest loan products of around 7 percent at present for the installation of residential RTS systems up to 3 kW.