Fenice Energy logo

Guide to Pradhan Mantri Solar Panel Yojana -Benefits & Eligibility

Want Free Electricity? Here is a complete guide to Pradhan Mantri Solar Panel Yojana – eligibility, benefits, how to apply & more!

Follow us on:

22nd January 2024 was a great day for India — not only did our honourable Prime Minister, Shri Narendra Modi, inaugurate the Ram Mandir at Ayodhya after a prana pratishtha (consecration) ceremony but also announced the ‘Pradhan Mantri Suryodaya Yojana’, a government scheme under which one crore households will get rooftop solar power systems. The pradhan mantri solar panel yojana would not only reduce the electricity bill of the poor and middle class but would also make the country self-reliant in the energy sector.

Reduce your electricity bills upto 90% with Fenice

Get an Estimate

“Today, on the auspicious occasion of the consecration in Ayodhya, my resolve has been further strengthened that the people of India should have their own solar roof-top system on the roof of their houses. The first decision I have taken after returning from Ayodhya is that our government will launch ‘Pradhanmantri Suryodaya Yojana’ with the target of installing rooftop solar on one crore houses. This will not only reduce the electricity bill of the poor and middle class but will also make India self-reliant in the field of energy,” Mr. Modi tweeted from his account.

In this article, we give you more details about what the Pradhan Mantri solar yojana is, what are it’s benefits, whom is it for, and other details.

What is Pradhan Mantri Solar Panel Yojana?

This visionary scheme introduced by the Indian Government aims at providing rooftop solar panels to one crore households, from poor to middle-class families. These rooftop solar panels will be installed on the rooftops of houses and will use sunlight to make electricity. Rooftop solar panels are panels that change sunlight into electricity. They’re put on the roof and connected to the main power supply. This means less electricity from the grid is needed, which saves money for the people using them. In February, the Prime Minister officially launched the scheme under the name, Surya Ghar Muft Bijli Yojana. The Pradhan Mantri free solar panel yojana will help these families save money on their electricity bills and also make India less dependent on other countries for energy. This scheme is an important rollout from the government of India because in a solar rooftop system, there is only an upfront capital investment with minimal cost for maintenance. In fact, several states are offering subsidies to facilitate its implementation. Know More About Rooftop Solar Panels

Who Can Apply (Eligibility) for the Pradhan Mantri Solar Panel Yojana?

As mentioned before, the citizens (with yearly income up to Rs. 1 to 1.5 lakhs) who are under the poverty line (BPL) or belong to the middle-class are eligible for the Pradhan Mantri Solar Yojana. This initiative offers a prime opportunity for those contemplating rooftop solar installation, not only to embrace sustainable energy but also to realize substantial electricity savings within their homes.

Despite the promising commencement of rooftop solar plant installations in states like Uttar Pradesh, Bihar, Rajasthan, Maharashtra, and Madhya Pradesh, there appears to be a lack of widespread public enthusiasm for the endeavor, despite its potential benefits. Under this scheme, the central government extends a significant 40% subsidy for the installation of solar panels with a 3-kilowatt capacity. For those opting for a larger 10-kilowatt capacity, a still substantial 20% subsidy is available. Neeraj Kuldeep, Senior Programme Lead at the Council on Energy, Environment, and Water, underscores the immense potential for rooftop solar installations in both rural and urban areas across India. Research suggests that more than 640 gigawatts of rooftop solar plants could be installed in homes, highlighting the substantial scale of this initiative. Currently, around 7 to 8 lakh households have already adopted rooftop solar, benefiting from the government’s capital subsidy program. Kuldeep emphasizes the positive impact of a significant increase in rooftop solar installations, estimating that a 12-14x surge could add 20-25 gigawatts of solar power capacity. Besides environmental benefits, this surge could help states save on power subsidies and contribute to the financial health improvement of power distribution companies. Since 2022, an online portal has been accessible on the official website for individuals interested in applying for home solar plant installations. The application process entails providing essential details such as state name, electricity bill number, mobile number, email ID, and the name of the electricity distribution company.

Benefits and Objectives of the Pradhan Mantri Suryodaya Yojana

Let’s take a quick glance about the PM Suryodaya Yojana.

  • Objective -Help citizens economize on electricity savings.
  • Program Details -Offers 300 units of complimentary electricity. -Subsidizes 60% of the cost for installing panels up to 2 kilowatts. -Extends a subsidy of Rs 18,000 per kilowatt for 500 kilowatts. -Benefits electric vehicles (EVs) and RWA/group housing societies.
  • Aims To -Promote renewable energy adoption. -Reduce carbon footprints. -Incentivize sustainable practices in residential and transportation sectors.
  • Beneficiary Savings -Even after paying loan installments from electricity bill savings, beneficiaries will save money. -Example: Installing a 3 kW rooftop solar plant could save over Rs 15,000 annually.
  • Scale -Rooftop solar panels to be installed on 1 crore houses. -300 units of free electricity provided.
  • Subsidy and Loan Details -60% subsidy available for up to 2 kilowatts. -Loans for rooftop solar available at affordable interest rates. -Interest rate set at 0.5% above the repo rate. -Rs 18,000 per kilowatt subsidy available for EV and housing societies.

How to Apply for the Pradhan Mantri Suryodaya Yojana

Joining the PM Suryodaya Yojna is very simple. Individuals / families who wish to avail the benefits of this scheme can apply online at https://pmsuryaghar.gov.in/. Once applied, they can pick their preferred solar vendor and rooftop solar setup easily. Once the installation process is complete, the power meter from DISCOMs will be set up and its confirmation will be shared online. Post this, the subsidy will be directly sent to the applicant’s bank account. The government also offers loans for the remaining solar panel costs through the same portal. Banks provide these loans with interest rates not exceeding 0.5% above the repo rate.

Documents Required to Avail Pradhan Mantri Solar Panel Yojana

If you wish to avail the benefits of any solar scheme, then for this you will need the below-mentioned documents: -Aadhar card -Income certificate -Domicile certificate -Necessary documents related to the land you own and on which the solar panels need to be installed. -Electricity bill -PAN card -Bank passbook -Passport size photograph image of pradhan mantri suryodaya yojana

Closing Thoughts

The government’s efforts to promote rooftop solar power systems in India have a history dating back to the initiation of the Rooftop Solar Programme in 2014, with the aim of reaching a capacity of 40 GW by 2022. However, this target was not achieved, leading to an extension of the deadline to 2026. The recent introduction of the Pradhan Mantri Suryodaya Yojana signifies a renewed effort to meet the 40 GW rooftop solar capacity goal. According to the latest World Energy Outlook by the International Energy Agency, India faces a significant increase in energy demand over the next three decades. To address this, India aims to diversify its energy sources beyond coal, with a commitment to achieving 500 GW of renewable energy capacity by 2030. Given this context, expanding solar power capacity is essential. Although the nation has made substantial progress in solar power, with capacity increasing from under 10 MW in 2010 to 70.10 GW by 2023, this growth underscores the importance of further developing solar energy infrastructure to meet the country’s energy needs.

Reduce your electricity bills upto 90% with Fenice


March 25, 2024


Top Products

Recent Blogs

Please enable JavaScript in your browser to complete this form.
Please enable JavaScript in your browser to complete this form.
Full Name
Please enable JavaScript in your browser to complete this form.
Full Name
Please enable JavaScript in your browser to complete this form.
Full Name