The Union Cabinet on Thursday approved a ?75,021-crore package for the “PM-Surya Ghar: Muft Bijli Yojana” (PM Free Electricity scheme) to promote rooftop solar (RTS) installations in India. The scheme claims to be able to provide 300 units of “free electricity” every month to one crore households. However, details of the scheme officially unveiled on Thursday are unclear on how exactly this would result in free electricity to one crore householders.
talled at the Pavagada Solar Park north of Bangalore, India, March 1, 2018. | Photo Credit: AP
The Union Cabinet on Thursday approved a ?75,021-crore package for the “PM-Surya Ghar: Muft Bijli Yojana” (PM Free Electricity scheme) to promote rooftop solar (RTS) installations in India. The scheme claims to be able to provide 300 units of “free electricity” every month to one crore households. However, details of the scheme officially unveiled on Thursday are unclear on how exactly this would result in free electricity to one crore householders.
The Centre will fund, an accompanying press statement from the Power Ministry says, 60% of the cost for installing for 2 kW (kilowatt) systems and 40% of the cost for systems from 2-3 kW capacity. Systems of higher wattage will not be eligible for Central subsidy. “At current benchmark prices, this will mean ?30,000 subsidy for 1 kW system, ?60,000 for 2 kW systems and ?78,000 for 3 kW systems or higher,” a press statement from the Power Ministry noted. As a next step, households will apply for subsidy through a Central portal and be able to select a suitable vendor for installing rooftop solar system. 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.
For the remaining costs, households will be able to “access collateral-free low-interest loan products of around 7% at present for installation of residential RTS systems up to 3 kW,” the release noted. This implies that minus the Central subsidy, the rest of the installation expenses have to be borne by the aspirant consumer.