The Ministry of New and Renewable Energy announced a financial outlay of ₹800 crore ($95.2 million) on Monday to create model solar villages that will serve as a blueprint for other small towns to follow.
The ministry notified the scheme guidelines for the ‘Model Solar Village’ scheme under PM-Surya Ghar: Muft Bijli Yojana on Aug. 9. The goal is to promote renewable energy and enable village communities to become self-reliant in meeting their energy needs.
A model solar village is an area selected to showcase the potential of solar energy and inspire other villages to adopt green power, a ministry statement said.
According to the notification, a village in each district with the highest renewable energy capacity will receive a central financial assistance grant of ₹1 crore.
The PM Surya Ghar: Muft Bijli Yojana is a landmark initiative Prime Minister Narendra Modi launched on Feb. 15, 2024. It aims to transform India’s energy landscape by providing free electricity to households.
This ambitious scheme empowers households to harness solar energy by offering a substantial subsidy covering up to 40 percent of the cost of installing solar panels on their rooftops.
The ministry statement said that the scheme is poised to benefit 1 crore households nationwide due to the widespread adoption of solar power.
Moreover, it is projected to generate significant savings for the government, estimated at Rs. 75,000 crores annually in electricity costs.
The statement further revealed that the scheme has already received 28 crore registrations and 14.84 lakh applications.
The subsidy provided under the scheme varies based on the household’s average monthly electricity consumption and the corresponding suitable rooftop solar plant capacity.
Households can apply for the subsidy through the National Portal, where they can also select a suitable vendor for installing rooftop solar.
The National Portal will assist in decision-making by providing information on appropriate system sizes, a benefits calculator, vendor ratings, and other relevant details.
Households can access collateral-free, low-interest loans at around 7 percent interest for installing residential rooftop solar systems up to 3 kilowatts.
The PM Surya Ghar: Muft Bijli Yojana is expected to have far-reaching outcomes for individual households and the nation as a whole.
Households will benefit from significant savings on their electricity bills. Additionally, they will have the opportunity to earn extra income by selling surplus power generated by their rooftop solar systems to distribution companies.
For instance, an average 3-kW system can generate over 300 units per month, providing a reliable energy source and potential revenue.
The scheme is projected to add 30 GW of solar capacity through rooftop installations in the residential sector, significantly contributing to India’s renewable energy goals.
Additionally, it is estimated that over the 25-year lifetime of these rooftop systems, the scheme will generate 1,000 billion units of electricity while reducing carbon dioxide emissions by 720 million tonnes, making a substantial positive impact on the environment.
