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The Union Cabinet on Thursday approved the PM Surya Ghar Free Electricity Scheme. Through this, the government is making a provision of providing subsidy and 300 units of free electricity for installing solar panels on the rooftop of one crore houses. What is this scheme, how can you apply for subsidy under Roof Top Solar Scheme and how can you avail the subsidy, all this information is given here.
What is PM Surya Ghar Free Electricity Scheme?
PM Surya Ghar Free Electricity Scheme is a central scheme that aims to provide free electricity to one crore households in India who choose to install rooftop solar power units. Such families will be able to get 300 units of free electricity every month. This is a scheme with an expenditure of Rs 75,021 crore.
How does PM Surya Ghar Free Electricity Scheme work?
The scheme subsidizes 60 percent of the solar unit cost for systems up to 2 kW capacity and 40 percent of the additional system cost for systems between 2 to 3 kW capacity. This subsidy has been limited to 3 kilowatt capacity. At current standard prices, this would mean Rs 30,000 for a 1 kW system, Rs 60,000 for a 2 kW system and Rs 78,000 for a 3 kW or more system.
Who is eligible to apply for this scheme?
1. The applicant must be an Indian citizen.
2. The house should have a suitable roof for installing solar panels.
3. The household must have a valid electricity connection.
4. The family should not avail any other subsidy for solar panels.
How to apply for PM Surya Ghar Free Electricity Scheme?
First of all the interested consumer will have to register on the national portal www.pmsuryagarh.gov.in. In this the state and electricity distribution company will have to be selected. The national portal will assist the interested families by providing necessary information like proper system size, benefit calculation, vendor rating etc. Consumers can select the vendor and the rooftop solar unit they want to install on their rooftop.
Can a consumer avail loan facility for installing a solar power unit?
Yes, a family can take a loan at a low interest rate (currently around 7 per cent) without any guarantee for the installation of a residential RTS system up to 3 kW. This interest rate is 0.5 percent more than the repo rate decided by the Reserve Bank of India from time to time. If the repo rate, which is currently 6.5 percent, is reduced to 5.5 percent, the effective interest rate for the consumer will be 6 percent instead of the current 7 percent.
What is the step-by-step process to get subsidy?
Phase 1
Register on the portal
· Select your state and electricity distribution company
· Enter your electricity consumer number, mobile number and email.
Phase 2
· Login with consumer number and mobile number
· Apply for rooftop solar as per the form
step 3
· After receiving NOC, get the plant installed from any registered vendor.
step 4
· After installation of plant, submit plant details and apply for net meter.
Step-5
Once the net meter is installed and inspected by the distribution company (or Discom), a commissioning certificate will be generated from the portal.
Step-6
After receiving the commissioning report, submit your bank account details and a canceled check through the portal. You will get your subsidy in your bank account within 30 days.Why should a family choose a rooftop solar power plan?
Thanks to this scheme, families will be able to save on their electricity bills and will also be able to earn additional income by selling excess electricity to Discoms. PM Surya Ghar Free Electricity Scheme promises assured savings of around Rs 15,000 in a year for a family consuming up to 300 units per month by installing a rooftop solar unit of 3 kW capacity. Such a house, by generating its own electricity, will save around Rs 1,800 – Rs 1,875 on electricity bills.
Even after deducting the EMI of Rs 610 on the loan taken for installation of the solar unit, this saving will amount to approximately Rs 1,265 per month or approximately Rs 15,000 in a year. The families who do not take loans will have even higher savings. Apart from this, the roof top solar scheme will also reduce carbon emissions by promoting the production of renewable energy.