Solar Rooftop System Subsidy Under PM Surya Ghar Yojana

Who can avail of the solar rooftop subsidy in India?

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved PM-Surya Ghar: Muft Bijli Yojana with a total outlay of Rs.75,021 crore for installing rooftop solar and providing free electricity up to 300 units every month for One Crore households. The Prime Minister had launched the scheme on 13th February, 2024.

The major highlights of the scheme include:
Central Financial Assistance (CFA) for Residential Rooftop Solar
i. The scheme provides a CFA of 60% of system cost for 2 kW systems and 40% of additional system cost for systems between 2 to 3 kW capacity. The CFA will be capped at 3 kW. At current benchmark prices, this will mean Rs 30,000 subsidy for 1 kW system, Rs 60,000 for 2 kW systems and Rs 78,000 for 3 kW systems or higher.
ii. The households will apply for subsidy through the National Portal and will be able to select a suitable vendor for installing rooftop solar. The National Portal will assist the households in their decision-making process by providing relevant information such as appropriate system sizes, benefits calculator, vendor rating etc.
iii. Households will be able to access collateral-free low-interest loan products of around 7% at present for the installation of residential RTS systems up to 3 kW.

How much subsidy is available in India for installing Grid Connected Solar Rooftop Systems?

Central Financial Assistance (CFA)/ Central Government Subsidy for rooftop solar plant installed by a residential consumer is common for the entire country under the new subsidy scheme, PM – Surya Ghar: Muft Bijli Yojna, which is as under:

Here’s how to apply for the PM Surya Ghar Muft Bijli Yojana:

1. Start by visiting https://pmsuryaghar.gov.in.
2. Click on the “Apply for Rooftop Solar” option.
3. Before proceeding, you’ll need to register with some necessary details, including your State, Electricity Distribution Company, Electricity Consumer Number, Mobile Number, and Email.
4. After registration, log in using your mobile number to continue.
5. You can now proceed to apply for the Rooftop scheme. Be prepared to submit your bank details at any point during the application process.
6. Once you receive feasibility approval, arrange for the installation of the solar plant through any of the registered vendors in your DISCOM.
7. After installation is complete, submit the plant details and apply for a net meter.
8. A commissioning certificate will be generated from the portal after the net meter is installed and inspected by the DISCOM.
9. Upon receiving the commissioning report, submit your bank account details and a cancelled cheque through the portal. Your subsidy will be credited to your bank account within 30 days.

PM Surya Ghar Muft Bijli Yojana (https://pmsuryaghar.gov.in/) for Rooftop Solar was launched on 13.02.2024. On the PM Surya Ghar Muft Bijli Yojana any residential consumer from any part of the country can apply for installation of RTS and get CFA directly in his/her bank account. All the steps starting from application to release of CFA can be monitored by consumers online on the Portal.

The interested beneficiary may install the solar rooftop systems through project developers/system integrators/manufacturers etc. after obtaining necessary approval from DISCOMs within the capacity limit as laid down in the order of the respective State Electricity Regulatory Commission/Joint Electricity Regulatory Commission of the respective States/UTs.

Other Features of the Scheme
i. A Model Solar Village will be developed in each district of the country to act as a role model for adoption of rooftop solar in rural areas,

ii. Urban Local Bodies and Panchayati Raj Institutions shall also benefit from incentives for promoting RTS installations in their areas.

iii. The scheme provides a component for payment security for renewable energy service company (RESCO) based models as well as a fund for innovative projects in RTS.

Outcome and Impact
Through this scheme, the households will be able to save electricity bills as well as earn additional income through the sale of surplus power to DISCOMs. A 3 kW system will be able to generate more than 300 units a month on average for a household.

The proposed scheme will result in the addition of 30 GW of solar capacity through rooftop solar in the residential sector, generating 1000 BUs of electricity and resulting in the reduction of 720 million tonnes of CO2 equivalent emissions over the 25-year lifetime of rooftop systems.

It is estimated that the scheme will create around 17 lakh direct jobs in manufacturing, logistics, supply chain, sales, installation, O&M and other services.
Availing Benefits of PM-Surya Ghar: Muft Bijli Yojana
The Government has launched a massive campaign since the launch of the scheme for raising awareness and generating applications from interested households. Households can register themselves on https://pmsuryaghar.gov.in to avail of benefits under the scheme

Procedure for the consumers to install Rooftop Solar and avail subsidy –

1. Register at National Portal www.pmsuryaghar.gov.in and submit the application. At the time of application, the beneficiary will be informed about the complete process and subsidy amount that can be availed for the installation of a rooftop solar plant.
2. The application will be forwarded online to the concerned DISCOM for issuance of technical feasibility. The DISCOM will issue technical feasibility within next 15 days.
3. After issuance of technical feasibility, the beneficiary can install the rooftop solar plant through any of the registered vendors. List of registered vendors will be displayed on the portal.
4. After the installation of the rooftop solar plant, the beneficiary will submit plant details on the portal and apply for net metering. The application for net metering will be forwarded online to the concerned DISCOM.
5. Upon installation of the net meter and successful inspection of the plant, commissioning certificate would be generated online by DISCOM.
6. Once the commissioning certificate has been received, the beneficiary will submit bank account details on the portal along with copy of canceled cheque.

When will you get the Solar Subsidy?

Central government subsidy will be credited directly into the bank account of the beneficiary within 30 working days of receipt of the bank account details and uploading of all necessary documents.

• What are the documents/information required for online application for solar rooftop subsidy?

• Electricity connection number / Consumer number (mentioned in electricity bill), email id and mobile number.
• copy of the latest electricity bill.
• bank details and a copy of the canceled cheque.

• Approved/Empanelled vendors under solar rooftop subsidy scheme

• Vendors willing to register/empanel themselves in the Programme under simplified procedure may get themselves registered with the consumers’ DISCOM by submitting an application along with a declaration (as per Annexure) and depositing a PBG of Rs. 2,50,000/- (Rupees Two Lakh Fifty Thousand only) valid for at least five years.
• The vendors can submit the application at the Division/Circle level and the name of the vendor will be included in the list of registered/empanelled vendors within a period of one month from the date of submission of the application.
• Registration/empanelment of vendors will be valid initially for one year from the date of empanelment and can be renewed thereafter on yearly basis.
• The DISCOM will notify the registered/empanelled vendors on its website for information of residential consumers and update the same every month.
• The registered/empanelled vendor selected by the beneficiaries will conduct the physical survey to assess the RTS capacity and guide the beneficiary on the RTS capacity that can be installed in the beneficiary’s premises considering technical and financial parameters.
• The vendor shall also provide assistance to the beneficiary in getting necessary approvals, installing the net-meter and facilitating inspection by the DISCOM.

Where to apply for solar subsidy online?

A consumer can apply online at National Portal https://pmsuryaghar.gov.in/.

For more details read this blog: ROOFTOP SOLAR SUBSIDY (DBT SCHEME) BY MNRE NATIONAL PORTAL STEP-BY-STEP PROCESS

MNRE Subsidy circular can be accessed at https://mnre.gov.in/img/documents/uploads/file_f-1674816949680.pdf

• The updated list of Approved List of Models and Manufacturers (ALMM) can be accessed at https://mnre.gov.in/img/documents/uploads/file_f-1677495693355.pdf

1. Links for the list of approved/empanelled vendors for some states are provided below:
2. Maharashtra https://www.mahadiscom.in/ismart/empanelled_agencies.php.
3. Uttar Pradesh https://upnedasolarrooftopportal.com/Approved-Firms.
4. Gujarat https://suryagujarat.guvnl.com/documents/2020/InstallerList_GUVNL%20for%20(2020-21).pdf
5. Telangana https://tsredco.telangana.gov.in/Updates_2021/Empanel-List-13-04-2022.pdf
6. Rajasthan http://rreclmis.energy.rajasthan.gov.in/Vendor/AllVendorlist.aspx?Appid=2