PM Surya Ghar: Muft Bijli Yojana (PMSY)

The Indian government has recently launched the PM Surya Ghar: Muft Bijli Yojana (PMSY), a significant initiative aimed at promoting rooftop solar energy across the country. With a budget of Rs 75,000 crore, the scheme seeks to address rising electricity costs, reduce reliance on financially struggling electricity distribution companies, and enhance the adoption of clean energy solutions among households.

Key Highlights

• As of August 2024, Gujarat leads the rooftop solar race with 4,195 MW installed capacity, followed by Maharashtra (2,487 MW) and Rajasthan (1,269 MW), contributing to India’s total RTS capacity of 13,889 MW.
• Despite Gujarat’s dominance, Assam surprised analysts by leading PMSY applications with 2.23 lakh, followed by Gujarat (2.1 lakh) and Maharashtra (1.9 lakh).
• However, the promise of “zero electricity bills” isn’t guaranteed for everyone.
  • About 90 per cent of applicants are availing loans for installations, with many opting for systems larger than the subsidised 3 kW, which incurs charges for usage above 300 units.

 About the Scheme

• PM Surya Ghar: Muft Bijli Yojana is a Rs 75,000 crore initiative designed to install one crore rooftop solar systems nationwide.
• Subsidy Structure: The scheme offers substantial subsidies—60% for solar units up to 2 kW and 40% for systems between 2-3 kW, capped at a maximum capacity of 3 kW.
  • 60% subsidy for systems up to 2 kW.
  • 40% subsidy for systems between 2-3 kW.
  • Maximum capacity for subsidies is capped at 3 kW.
  • Financial support translates to up to Rs 78,000 for larger installations.
• PMSY aims to transform household energy consumption by promoting the installation of rooftop solar systems. The key features of the scheme include:
• Household Empowerment: The PMSY envisions households becoming independent power producers, potentially generating their own electricity while remaining connected to the grid.
• Regional Insights: Gujarat's prior initiatives, like the Surya Gujarat scheme, have significantly influenced current success in rooftop solar capacity, while states like Assam are showing unexpected leadership in applications.
• Financial Implications: Despite expectations for reduced electricity bills, consumers face fixed grid charges and may incur costs for excess usage beyond the subsidized limits. The scheme encourages long-term savings and sustainability through clean energy.