The Union cabinet on Thursday approved an outlay of Rs 75,021 crore for installing rooftop solar and providing free electricity up to 300 units every month for 1 crore households.
The PM-Surya Ghar: Muft Bijli Yojana was announced in the interim budget on Feb. 1 and Prime Minister Narendra Modi officially launched the scheme on Feb. 13.
The scheme provides a subsidy of 60% of system costs for 2 kilowatt systems and 40% of additional system costs for systems between 2 and 3 kW in capacity. A 3-kW system will be able to generate more than 300 units a month on average for a household, the government said.
At current benchmark prices, this will mean a Rs 30,000 subsidy for a 1 kW system, Rs 60,000 for 2 kW systems and Rs 78,000 for 3 kW systems or higher, it said.
Households can apply for subsidies through the national portal and will be able to select a suitable vendor for installing rooftop solar.
Eligible households will be able to access collateral-free low-interest loan products of around 7% at present for the installation of residential rooftop solar systems up to 3 kW.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
