Union Budget 2024: PM Surya Ghar Muft Bijli scheme to power 1 cr homes. Here's how it lowers your electricity bill

In Budget 2024, Finance Minister extended the PM Surya Ghar Muft Bijli scheme, for installing rooftop solar panels,  to 1 crore households. The scheme has already seen an overwhelming response, with 1.28 crore registrations and 14 lakh applications, marking a significant step in India's renewable energy journey.

The scheme is designed to provide substantial financial relief to households by harnessing solar power. Photovoltaic panels installed on rooftops will not only reduce reliance on grid electricity but also enable households to generate and sell surplus energy, leading to annual savings of Rs 15,000 to Rs 18,000. The implementation of Net Metering ensures that excess energy fed back into the grid earns users credits, effectively lowering future utility bills.

The benefits of this initiative extend beyond cost savings. The widespread adoption of rooftop solar will facilitate the charging of electric vehicles, promote entrepreneurship among vendors supplying and installing solar panels, and create numerous employment opportunities for youth with technical skills in manufacturing, installation, and maintenance.

The government has made it financially feasible for homeowners to set up solar rooftops, offering subsidies ranging from Rs 9,000 to Rs 18,000 per kW under the Rooftop Solar Program Phase-II. Additionally, the cost of installation, which ranges from Rs 2.20 lakh to Rs 3.5 lakh for a 3KW to 5KW system, can be managed through easy EMIs, equivalent to regular electricity bills.

Since 2016, India's rooftop solar capacity has grown to 2.7 GW, but the goal is to reach 40 GW. Despite the slow pace of adoption due to a lack of awareness and financing options, initiatives like the Pradhan Mantri Suryodaya Yojana (PMSY) aim to accelerate the uptake of solar energy. Companies like Credit Fair are stepping in to offer personal loans and no-cost EMIs to make solar installations more accessible.

The government is targeting an annual solar power generation of 40 GW over the next five years, striving to achieve a 500 GW non-fossil fuel capacity by 2030. However, with only 2.2 GW currently installed in homes, there's a significant gap to bridge. The PM Surya Ghar Muft Bijli scheme represents a vital effort to meet these ambitious targets and transform India's energy landscape.

With this initiative, the Centre not only aims to alleviate the burden of electricity costs for millions of households but also pushes forward its commitment to sustainable and renewable energy solutions.