Published: 9th Feb, 2024
Context
The government is all set to increase the subsidy provided to consumers under the newly announced rooftop solar scheme, Suryodaya Yojana, to 60% against the current 40% provided for installation of rooftop solar projects up to 3 kW capacity. This subsidy for the northeast and hilly states will be 70%.
What is Pradhan Mantri Suryodaya Yojana?
- Pradhanmantri Suryodaya Yojana is a central government scheme which aims to provide electricity to low and middle-income individuals through solar rooftop installations, along with offering additional income for surplus electricity generation
- Aim: It aims to benefit around 10 million (one crore) households by allowing them to sell their surplus electricity (to DISCOMS).
- Nodal Agency: The state-run Rural Electrification Corporation (REC) Limited is the designated nodal agency for the project.
- The new scheme will focus on consumers whose consumption of electricity is less than or equal to 300 units per month.
- This scheme to make India self-reliant in the energy sector will include citizens who belong to the BPL or poor people with very minimal investment.
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Related Government Initiatives:
- Rooftop Solar Programme: In 2014, the government launched the Rooftop Solar Programme that aimed to achieve a cumulative installed capacity of 40,000 megawatts (MW) or 40 gigawatts (GW) by 2022.
- However, this target could not be achieved. As a result, the government extended the deadline from 2022 to 2026.
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Other Government Initiatives for Solar Energy
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- Financial assistance: Currently, the government provides financial assistance for residential solar rooftop projects. To make it more attractive, the union ministry for new & renewable energy has recently revised the Central Financial Assistance for residential solar rooftop projects.
- New beneficiaries can get additional financial assistance of ?10,000 to ?22,000 under the subsidy scheme through the national solar rooftop portal.
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India’s Solar Capacity
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Significance of the initiative
- Self-sufficiency: This scheme not only addresses the immediate needs of millions but is also expected to propel nation towards energy self-sufficiency.
- Growth: The impact of the scheme resonates across the entire solar supply chain, which may lead to creation of demand right from the level of panel glass to aluminium to solar modules, and various components associated with them.
- Employment generation: This, in turn, will not only aid the growth of the industry but also serve as a catalyst for employment generation.
- With India already at a local manufacturing capacity of 62.85 GW for solar PV, complemented by the upcoming 39.6 GW under the PLI scheme, the nation is prepared to meet the demands of this project
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