PM-Surya Ghar: Muft Bijli Yojana

• 17 Jan 2025

Source: PIB 

Why in News?  

The Union Ministry of New and Renewable Energy has issued operational guidelines for the PM-Surya Ghar Muft Bijli Yojana, detailing RESCO (Renewable Energy Service Company) and Utility-Led Aggregation (ULA) models.  

• These guidelines will supplement the existing consumer-driven implementation of rooftop solar installations through the  National Portal of the scheme. 

What are the Key highlights of the Guidelines for the PM-Surya Ghar? 

• Two Models for Solar Installation: 
  • RESCO (Renewable Energy Service Company) Model: Third-party entities invest in rooftop solar installations. Consumers only pay for the electricity consumed, without bearing upfront costs. Excess power can be sold to DISCOMs. 
  • Utility Led Aggregation (ULA) Model: Power distribution companies (DISCOMs) or state-designated entities install rooftop solar systems for residential households. 
• Payment Security Mechanism (PSM): A Rs 100 crore PSM fund has been established to de-risk investments in RESCO-based rooftop solar models. It can be enhanced with additional grants, subject to Ministry approval. 

What are the Key Facts About PM-Surya Ghar Muft Bijli Yojana? 

• About: The PM Surya Ghar Muft Bijli Yojana, launched in February 2024 by the Ministry of New and Renewable Energy (MNRE), aims to provide free electricity to one crore households by installing rooftop solar panels.  
  • With a total budget of Rs 75,021 crore, the scheme is planned for implementation until FY 2026-27.  
    • It offers up to 300 units of free electricity per month and provides a subsidy covering up to 40% of the installation cost, promoting widespread solar energy adoption across the country. 
• Eligibility: Indian citizens, homeowners, valid electricity connection, no prior solar subsidy.  
• Implementation: The PM Surya Ghar Muft Bijli Yojana will be implemented by the National Programme Implementation Agency (NPIA) at the national level and State Implementation Agencies (SIA) at the state level.  
• Key Components:  
  • Central Financial Assistance (CFA): Provides financial support to residential consumers for installing rooftop solar panels through the National Portal. 
  • Model Solar Village: Create one Model Solar Village per district, promoting solar energy adoption. 
    • Villages with populations over 5,000 (or 2,000 in special states) are eligible for selection, and are evaluated on renewable energy capacity six months after being identified by the District Level Committee (DLC).  
      • The village with the highest RE capacity in each district receives Rs 1 crore in financial assistance. 
• Expected Outcomes: 
  • The scheme is expected to reduce carbon emissions by 720 million tonnes over the lifetime of the rooftop systems. 
  • An estimated 17 lakh direct jobs will be generated across sectors like manufacturing, logistics, installation, and operations. 
  • The scheme will contribute 30 GW to India’s solar energy capacity through residential rooftop systems. 
  • Households can earn income by selling surplus electricity to DISCOMs, with systems like the 3 kW rooftop setup generating over 300 units per month. 

UPSC Civil Services Examination, Previous Year Question (PYQ) 

Prelims 

Q. With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct? (2015)

1. It is a Public Limited Government Company. 
2. It is a Non-Banking Financial Company. 

Select the correct answer using the code given below: 

(a) 1 only  

(b) 2 only 

(c) Both 1 and 2  

(d) Neither 1 nor 2 

Ans: (c)