PM Surya Ghar: Muft Bijli Yojana' 2024

The Indian government unveiled an ambitious scheme named 'PM Surya Ghar: Muft Bijli Yojana' in February 2024 aimed at promoting widespread adoption of rooftop solar panels across Indian households. Announced by Prime Minister Narendra Modi, the program plans to install rooftop solar photovoltaic (SPV) systems on one crore homes over the next few years. This would give a significant boost to renewable energy generation while helping common citizens reduce monthly electricity expenses.

The scheme offers 40% upfront capital subsidy on purchase and installation of rooftop solar equipment along with opportunities for households to earn income by feeding surplus power back to grids. By streamlining grid connectivity processes and providing monetary incentives for facilitating bodies, the government aims to rapidly solarize Indian rooftops.

Objectives and Targets

The primary objectives of the scheme include:

- Promoting large-scale adoption of grid-connected rooftop solar systems to boost India's renewable energy capacity

- Reducing household electricity bills by solarizing homes and enabling self-consumption of solar power

- Creating employment opportunities and boosting economic growth via the domestic solar rooftop industry

- Mitigating climate change effects and enhancing India's energy security through higher solar power penetration

The scheme aims to solarize one crore Indian households over the next few years. This is estimated to entail an investment of over ₹75,000 crore into rooftop solar infrastructure.

Benefits for Households

Capital Subsidy

The scheme provides upfront capital subsidy of 40% on purchase and installation costs of rooftop solar systems. This subsidy shall be directly transferred to beneficiaries' bank accounts via DBT. This significantly reduces overall system costs.

Electricity Bill Savings

Households can save on monthly electricity expenses by up to ₹300 by self-consuming solar power generated. Surplus solar power can also be fed back to grids under net-metering policies to earn extra income.

Streamlined Grid Connectivity

Complex conventional procedures for connecting rooftop solar systems to nearest grids have been simplified for ease of adoption. Standardized online applications and approvals within fixed timelines.

Sense of Contribution

Participating households also get the satisfaction of adopting clean energy and contributing to India's climate change mitigation efforts.

What is a Grid Connected Rooftop Solar System?

In a grid-connected rooftop solar photovoltaic (SPV) system, the DC power generated from solar panels is converted into AC power using a power conditioning unit/inverter. This AC power is then fed into the nearest electricity grid usually maintained by the applicable distribution company (discom).

The household can then consume solar power generated directly, reducing draws from the grid. Surplus solar power is exported back to the grid, enabling households to also earn income by selling this excess generation.

Advantages of Grid-Connected Rooftop Solar

Saving on Electricity Bills

Rooftop solar allows households to directly consume the solar power generated, reducing expensive grid power draws. Monthly electricity bill savings can be over ₹300.

Optimal Utilization of Space

Rooftop solar utilizes vacant roof spaces without needing additional land. Easy to install and maintain.

Low Gestation Period

Rooftop solar systems can start generating power within weeks of installation, with 25+ years lifespan.

Reduced Transmission Losses

Onsite solar generation eliminates grid transmission and distribution (T&D) losses since power consumption is collocated with generation.

Enhanced Grid Voltages

Distributed rooftop solar improves tail-end grid voltages and reduces system congestion by meeting local loads.

Environmental Benefits

Solar cuts conventional fossil fuel usage, enabling avoided carbon emissions. Enhances India's energy and ecological security.

Efficient Energy Management

DISCOM grid operators can better manage loads by tapping into rooftop solar during sunny daytime peak periods.

Meeting RPOs

Rooftop solar contributions also help obligated entities under electricity regulators meet their Renewable Purchase Obligations.

Way Forward

The PM Surya Ghar scheme aims to usher in rooftop solar revolution across Indian households. Attractive financial incentives for households and simplified adoption processes should drive mass-scale adoption of solar rooftops. This would significantly expand renewable energy penetration while providing households reliable and clean power supply. The scheme perfectly aligns India's sustainable development and climate action goals. By promoting community participation, the government also aims to make rooftop solar a people-centric movement.