Context
Recently, the Ministry of New and Renewable Energy (MNRE) has proposed a new incentive scheme for States to accelerate the adoption of the “Utility-Led Aggregation (ULA)” model under the PM Surya Ghar: Muft Bijli Yojana. To achieve the national target of one crore rooftop solar households by March 2027, the government is encouraging State Power Distribution Companies (DISCOMs) to lead the installation process, particularly for households that face financial or infrastructural barriers.
1. Overview and Objectives
- Launch: Launched in February 2024 by the Prime Minister.
- Nodal Ministry: Ministry of New and Renewable Energy (MNRE).
- Primary Goal: To provide up to 300 units of free electricity every month to one crore households across India.
- Target Capacity: Aiming to reach 30 GW of solar capacity through residential rooftop systems.
- Financial Outlay: A total central investment of over ₹75,021 crore.
2. Implementation Models
The scheme moves beyond individual applications by introducing systemic models to ensure scalability:
- Utility-Led Aggregation (ULA) Model: DISCOMs or designated state agencies act as aggregators. They float bulk tenders to install systems across multiple households, lowering costs through economies of scale.
- RESCO (Renewable Energy Service Company) Model: A third-party developer (RESCO) installs, owns, and operates the solar plant on the consumer’s roof. The consumer only pays for the electricity generated, often at a rate lower than the grid tariff.
3. Central Financial Assistance (CFA) & Subsidy Structure
The subsidy is directly credited to the consumer’s bank account following installation and inspection.
- For 1–2 kW systems: Up to 60% of the benchmark cost.
- For 2–3 kW systems: 40% of the additional cost for the capacity beyond 2 kW.
- Upper Limit: The total subsidy is capped at a maximum of 3 kW capacity (approx. ₹78,000).
- Low-Interest Loans: Collateral-free, low-interest (around 7%) loan options are available through banks for systems up to 3 kW.
4. Special Components
- Model Solar Village: The scheme aims to develop one “Model Solar Village” in every district of India to act as a demonstration hub for solar adoption.
- Local Body Incentives: Urban Local Bodies (ULBs) and Panchayati Raj Institutions (PRIs) are provided financial incentives to promote and facilitate rooftop solar in their respective areas.
- National Portal: A dedicated digital platform handles the end-to-end process from registration to subsidy release, ensuring transparency.
Q. With reference to the ‘PM Surya Ghar: Muft Bijli Yojana’, consider the following statements:
1. The scheme provides a 100% subsidy for households installing rooftop solar systems up to 3 kW.
2. REC Limited has been designated as the National Programme Implementation Agency (NPIA) for the scheme.
3. Under the Utility-Led Aggregation (ULA) model, the ownership of the solar asset remains with the private developer for the entire life of the project.
How many of the statements given above are correct?
A) Only one
B) Only two
C) All three
D) None
Solution: A) Only one
• STATEMENT 1 IS INCORRECT: The scheme provides a subsidy of up to 60% for systems up to 2 kW and 40% for the additional capacity between 2 kW and 3 kW. It is not a 100% subsidy.
• STATEMENT 2 IS CORRECT: REC Limited is indeed the National Programme Implementation Agency (NPIA) responsible for coordinating the scheme across the country.
• STATEMENT 3 IS INCORRECT: In the ULA model, the utility (DISCOM) aggregates demand and facilitates installation, but ownership typically rests with the consumer or is transferred after a set period. Ownership remaining with a developer is a characteristic feature of the RESCO model, not necessarily the ULA model.
