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Govt energises rooftop solar plan with Rs 75,021 crore outlay


NEW DELHI: The government on Thursday approved an outlay of

Rs 75,021 crore

to assist one crore



rooftop solar

systems under the

PM-Surya Ghar scheme

launched by prime minister Narendra Modi on February 13, envisaging 300 units of free power each month.
Approving the scheme, the Cabinet approved financial assistance of 60% of the cost of a 2 kilowatt (kW or 2,000 watt) solar system and 40% of additional system cost for units with 2-3 kW capacity.

According to a government statement, at current benchmark rates this will translate into a subsidy of Rs 30,000 for a 1 kW system, Rs 60,000 for a 2 kW system and Rs 78,000 for a 3 kW system.
Households will also be able to access collateral-free loans at low interest rate of 7% for setting up rooftop solar systems up to 3 kW. No assistance will be given under the scheme to systems above 3 kW capacity.

The interim Budget in February had put Rs 10,000 crore on the table as seed money for the scheme and projected annual savings of Rs 15,000-18,000 in energy bill for each beneficiary household.
The Cabinet also decided that a ‘solar village’ will be set up in each district to serve as a role model for adoption of rooftop solar in rural areas. Urban local bodies and Panchayati Raj institutions shall also benefit from incentives for promoting rooftop solar 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 rooftop project arena.
The scheme will help households to reduce electricity bills and earn additional income through sale of surplus power to distribution utilities. A 3 kW system will be able to generate more than 300 units a month on an average, the Centre said.
The scheme will lead to addition of 30 gigawatt of solar power capacity in the residential sector, generating 1,000 billion units of electricity and resulting in reduction of 720 million tonnes of CO2 equivalent emissions over the 25-year lifetime of rooftop systems.
The government also claimed the scheme will create an estimated 17 lakh direct jobs in manufacturing, logistics, supply chain, sales, installation and maintenance services.
Interested households can seek assistance and select suitable vendors through the national portal for the scheme, which provides relevant information such as appropriate system sizes, benefit calculator and vendor rating.

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