Cabinet okays ₹75,000 crore rooftop solar scheme, 1 crore households to get subsidy of up to ₹78,000

The Prime Minister launched the scheme on 13th February 2024.

The scheme provides a central financial assistance (CFA) of 60% of system cost for 2 kW systems and 40% of additional system cost for systems between 2 kW to 3 kW capacity. The CFA will be capped at 3 kW.

At current benchmark prices, this will mean ₹30,000 subsidy for 1 kW system, ₹60,000 for 2 kW systems and ₹78,000 for 3 kW systems or higher.

The households will apply for subsidy through the National Portal and will be able to select a suitable vendor for installing rooftop solar.

The National Portal will assist the households in their decision-making process by providing relevant information such as appropriate system sizes, benefits calculator, vendor rating etc.

Households will be able to access collateral-free low-interest loan products of around 7% at present for installation of residential RTS (rooftop solar) systems up to 3 kW.

Other Features of the scheme include a Model Solar Village to be developed in each district to act as a role model for adoption of rooftop solar in rural areas.

Besides, Urban Local Bodies and Panchayati Raj Institutions shall also benefit from incentives for promoting rooftop solar (RTS) installations in their areas.

The scheme provides a component for payment security for renewable energy service company (RESCO) based models as well as a fund for innovative projects in RTS.

Through this scheme, the households will be able to save electricity bills as well as earn additional income through sale of surplus power to DISCOMs. A 3 kW system will be able to generate more than 300 units a month on average for a household.