PM-Surya Ghar (2024): Muft Bijli Yojana- A Revolutionary Step Towards Energy Equity In India

Policy Update
Deepa Baghel

Introduction

The “PM-Surya Ghar: Muft Bijli Yojana is the plan of the Government to provide free electricity of maximum 300 units to each of the households with the help of rooftop solar power systems. Starting in February of 2024, it plans to target electricity expenditures, encourage renewable energy sources, and cut down carbon emissions. The people especially in the rural areas are anticipating to achieve financial comfort through the initiative as a contributing factor to India, the country aspiring to be net zero emitter by 2070.

Key Features of the Scheme

1. Subsidy as financial assistance:-

Households can self-generate power from rooftops using solar panels with a 40 % government rebate on any system that does not exceed 2 kW. For somewhat larger power systems (2 to 3 kW), the subsidy rate is 40%.

This means where a 3 kW solar system might cost ₹ 1.3 lakh, after subsidies, it would cost around ₹ 52000.

For those families, which are unable to pay cash, credit at a very low interest rate is offered. They offer the credit facility at an interest of 7% and above and the same is accessible without any security.

2. Streamlined Application Process:

Currently, there is a central government online portal where members of the public can see whether they qualify for the scheme, estimate possible savings, choose between approved suppliers, and even monitor the status of submitted applications. This kills time and brings about clarity to the entire process.

3. Energy Savings and Income Generation:

Households that use electricity of less that 300 units per month are provided free power supply.

Also, for households, extra electricity produced by the solar panels may be fed back to the power distribution companies (DISCOMs). For instance, a family in Maharashtra can earn ₹1,200 every month more than they used to through the sales of excess power.

How the Scheme Works

1. Installation of Rooftop Solar Panels:
This system can be availed on a government portal where a family applies and the approved vendors supply and install the panels. Installation of panels triggers automatic conversion of the sunlight to electricity and this is used directly to meet the demands of households.

2. Subsidized Cost and Loans:
Subsidies pay for initial capital costs and loans for families which cannot afford even the lower prices.

3. Monthly Electricity Benefits:
For those families who use less than 300 units, electricity becomes completely free and puts no much pressure on the families.Extra power produced is returned to the utility company that supplied power into the specific system. It helps some families generate extra cash to augment their income, and at the same time provide India with energy.

Expected Outcome

The scheme is expected to deliver significant benefits across multiple domains:

1. Environmental Impact:
Solar energy is renewable hence a natural source of power. Promising to shift millions of households to solar power, the scheme can lower 720 million tonnes of CO₂ emissions over the next 25 years. This is in consonance with India’s global obligation towards mitigation of climate change.

2. Economic Benefits:
Under the given scheme, the government gets relief from a subsidy of ₹75,000 crore for electricity per annum.
– Job creation: According to Larsen, the solar industry is expected to create 17 lakh new jobs by the year 2022 for the posts related to manufacturing, installing, logistics, and maintenance workforce.

3. Empowerment of Rural Areas:
By far, those that will benefit greatly are the rural villages, where shortages of electricity power are always prevalent. For example, people with solar power in Gujarat and Maharashtra now have regular electricity supply, which was improving lighting for children’s learning needs and doing away with kerosene lamps.

4. Self-Sufficiency:
These communities improve local energy self-sufficiency when they produce the electricity they use. It is in the same breath that systems such as the Model Solar Village enables whole villages across the countryside to become models of sustainable living.

Challenges

Despite its promise, the scheme faces several challenges:

1. High Initial Costs:
However, there will always be families who cannot afford installation costs regardless of subsidies; especially families operating below the poverty line. The loan system does this but could use some more encouragement to help families feel okay about borrowing.

2. Awareness and Technical Knowledge:
As for the rural population there is still a lack of understanding on how the solar systems operate and how to navigate around them. These should be replaced by training and extensive education campaigns on the need to use the technology.

3. Power Grid Limitations:
Some of the DISCOM entities in the states are old structures which are not capable of managing the supply of excess energy developed by the solar rooftop systems. This might eventually result in the problems of incorporating solar energy into the national energy grid system.

Case and Examples

1. Maharashtra’s Solar Households:
This system was installed in March 2024 by a family who resides in Nashik, Maharashtra and they availed the 2 kW capacity solar power system. They further were reduced to paying zero electricity bills from the initial ₹3,500 per month they used to spend. They also get ₹1000 monthly by selling excess energy produced by the solar power system.

2. Gujarat’s Solar Villages:
From the solar energy adoption studies of villages in Gujarat, have it that electricity accessibility has improved significantly and hence the efficiency of the irrigation pumps. One farmer claims a cut down in the use of costly diesel generators.

3. Uttar Pradesh Model Solar Villages:
People say that in pilot villages use of solar energy in their homes, business and public places has brought a difference in their lives under which some have indicated that night working, extended business marketing hours, more light in the public domain for group activities etc.

Way Forward

To ensure the success and sustainability of the PM-Surya Ghar Yojana, the following steps are recommended:

1. Increased Awareness Campaigns:
Awareness on the scheme and its funds have to be created through government organizations along with local authorities for implementation of such schemes. An interactive workshop when conducted in the rural areas would be useful in a way that will help enlighten the residents.

2. Policy Integration:
That is why this process has to be linked to other initiatives, for example, the already mentioned National Solar Mission. The states should also ensure that policies in the utilization of renewable energy sources are bound by this scheme.

3. Improved Grid Infrastructure:
There must be investments to enhance the DISCOM infrastructure to accommodate the enhanced energy flow that they received from excessive solar power. This will ensure aggregation with the national grid In complete synchronization.

4. Focus on Battery Technology:
A particularly key invention is compact and cheap energy storage solutions which power companies can deploy at individual homes, especially in developing regions where access to grid power remains unpredictable.

5. Incentives for Local Entrepreneurs:
There is also the need to foster the local manufacture of solar products as well as supporting local business people to set up solar businesses like designing and maintaining solar panels.

Conclusion

The PM-Surya Ghar: Muft Bijli yojna is not just a subsidy policy; it is the nation’s promise to energy democracy, reasonability, and prosperity. Solving both the financial and environmental issues make a $150 billion a month promise effective in benefiting millions of households, reducing carbon emissions thus changing India into a global leader in the renewable energy sector.

However, some obstacles including prohibitive costs, awareness, and development of requisite structures require immediate attention. As improvements are made continuously and a strong implementation process works for this scheme, people can look forward to a cleaner country, which is also able to stand on its own.

References

Hindustan Times. (2024). *Details of the PM-Surya Ghar Muft Bijli Yojana*. Retrieved from [Hindustan Times](https://www.hindustantimes.com).
Ministry of New and Renewable Energy. (2024). *Cabinet Approval for Rooftop Solar Subsidy*. Retrieved from [PIB India](https://pib.gov.in).
The Economic Times. (2024). *India’s Big Push Towards Solar Energy*. Retrieved from [Economic Times](https://economictimes.indiatimes.com).

About the Contributor: Deepa Baghel is a research intern at IMPRI , currently pursuing her BA English Hons. From Delhi University.

Acknowledgement: The author would like to express thei sincere gratitude to DR. Arjun Kumar and Aasthaba Jadeja , for their invaluable input in reviewing the article.