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CASE STUDIES

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PM Surya Ghar: Muft Bijli Yojana launched to boost solar power adoption

The PM Surya Ghar Muft Bijli Yojana is a solar rooftop scheme launched by the Indian government
to provide free electricity to households in India. The initiative aims to support households with the
installation of solar power systems on their rooftops. Prime Minister Narendra Modi, on February 29
approved India’s latest rooftop solar scheme - ‘PM Surya Ghar: Muft Bijli Yojana’ - with an outlay of Rs
75,021 crore.
Here’s a brief overview of the key aspects of the PM Surya Ghar Muft Bijli Yojana:

1. Financial Assistance and Subsidy: The PM Surya Ghar Muft Bijli Yojana provides financial support
for the installation of solar panels. Homes that opt for solar power systems on their roofs will receive
300 units of free power. The scheme offers subsidies, with Rs 30,000 subsidy for a 1 kW system, Rs
60,000 for 2 kW systems, and Rs 78,000 for 3 kW systems or higher at current benchmark prices.
2. Loan Facility: The scheme also provides access to collateral-free, low-interest loan products for the
installation of residential rooftop solar systems up to 3 kW, with interest rates at around 7% at present
3. Eligibility: The eligibility criteria include ownership of a house with a suitable roof for solar panel
installation and a valid electricity connection. Additionally, households should not have availed of
any other subsidy for solar panels.

This initiative aims to promote the use of solar energy, reduce electricity costs for households, and
contribute to a cleaner and cost-effective energy future for India. The PM Surya Ghar : Muft Bijli Yojna is
a part of India’s broader commitment to sustainable development and its obligations under international
climate agreements. By offering generous subsidies , the government aims to accelerate the transition to
renewable energy , making solar installations a viable option for a vast segment of the population.

April, 2024, Volume 25. No.1 - SHELTER 53