5 min read
The Indian government plans to find one crore households using up to 300 units of electricity monthly for its new rooftop solar scheme called ‘Pradhan Mantri Suryoday Yojna.’ The households in this category won’t need to pay for the solar panels on their roofs, according to RK Singh, the union minister for power and renewable energy.
In the recent Budget, Finance Minister Nirmala Sitharaman mentioned this scheme would enable 10 million households to sell their surplus solar energy and is projected to yield annual savings between ₹15,000 and ₹18,000 per household.
Lighting up India through Nationwide Installation Scheme in India
The nationwide solar panel installation scheme implemented by eight public sector undertakings in India brings forth numerous benefits for the people, fostering sustainable development and enhancing the quality of life. Here are the key advantages of the scheme:
- Energy Cost Reduction:
- Installation of solar panels enables households to generate their electricity, reducing dependency on conventional power sources and lowering energy bills.
- Access to Clean Energy:
- One crore households gain access to clean and renewable energy, contributing to a reduction in environmental pollution and greenhouse gas emissions.
- Improved Energy Security:
- Diversifying the energy mix with solar power enhances energy security, ensuring a reliable and consistent energy supply for households across the nation.
- Job Creation:
- The scheme promotes job opportunities in the renewable energy sector, fostering economic growth and providing employment in installation, maintenance, and related fields.
- Subsidy Increase:
- The increase in the subsidy for rooftop solar panels to 60 percent makes the technology more affordable, encouraging a broader adoption of solar energy among households.
- Rural Electrification:
- Rural households, often underserved in terms of electrification, benefit from this initiative, bridging the urban-rural energy gap and promoting inclusivity.
- Technology Adoption:
- The widespread installation of solar panels introduces households to innovative and sustainable technologies, promoting a culture of environmental consciousness.
- Financial Savings:
- Beyond initial setup costs, households stand to benefit from long-term financial savings due to reduced electricity bills and potential income generation through excess energy production.
- Community Empowerment:
- Empowering communities to harness solar energy fosters a sense of ownership and self-sufficiency, driving community-led initiatives for sustainable living.
- Health and Environment:
- The shift to clean energy contributes to improved air quality and health outcomes, reducing respiratory issues associated with traditional energy sources.
- Climate Change Mitigation:
- The scheme aligns with climate change mitigation efforts by promoting the use of renewable energy, contributing to India’s commitment to sustainable development goals.
- Infrastructure Development:
- The installation program stimulates infrastructure development, including the establishment of solar power plants, contributing to a more resilient and modernized energy infrastructure.
- Education and Awareness:
- The initiative encourages awareness and education about renewable energy, fostering a culture of sustainability and responsible energy consumption among the population.
- Government’s Renewable Energy Goals:
- The scheme aligns with the government’s ambitious renewable energy targets, supporting the nation’s transition towards a greener and more sustainable future.
By addressing energy challenges, promoting economic growth, and fostering environmental sustainability, this solar panel installation scheme stands as a transformative initiative, positively impacting the lives of one crore households in India.
The Solar Scheme
Singh clarified that low-income houses under the Pradhan Mantri Awas Yojna will be included in this scheme, along with other households using up to 300 units per month.
The government has assigned eight public sector undertakings to implement the scheme nationwide. They will handle the installation of solar panels in these one crore households. The funding for this program will come partly from increasing the subsidy for rooftop solar to 60 percent.
- Solar Energy Corporation of India (SECI):
- SECI is a government undertaking responsible for implementing the nationwide solar panel installation scheme. It specializes in solar project development, focusing on both grid-connected and off-grid solutions. SECI plays a pivotal role in promoting renewable energy initiatives, ensuring the efficient deployment of solar technologies across the country.
- National Thermal Power Corporation (NTPC):
- NTPC, a leading power utility in India, is tasked with implementing the solar panel installation program. Leveraging its extensive experience in power generation, NTPC aims to contribute significantly to the government’s renewable energy goals. The corporation plays a key role in advancing sustainable and clean energy solutions.
- Power Finance Corporation (PFC):
- PFC, a financial institution in the power sector, is actively involved in the scheme’s implementation. It provides funding and financial support to facilitate the installation of solar panels in one crore households. PFC’s role is crucial in ensuring the economic viability and successful execution of the solar energy initiative.
- REC Limited (formerly Rural Electrification Corporation):
- REC Limited, a public financial institution, is designated to contribute to the program’s success by providing financial assistance. Specializing in rural electrification, REC focuses on making clean and sustainable energy accessible to households in remote areas. Its involvement enhances the scheme’s reach and impact on diverse communities.
- Indian Renewable Energy Development Agency (IREDA):
- IREDA, a leading financial institution for renewable energy projects, plays a pivotal role in implementing the solar panel installation initiative. Focused on promoting clean energy investments, IREDA facilitates funding to accelerate the adoption of solar solutions in households across the country, contributing to India’s renewable energy targets.
- Bharat Heavy Electricals Limited (BHEL):
- BHEL, a major engineering enterprise, is entrusted with the responsibility of deploying solar panels in the one crore households under the scheme. Leveraging its expertise in manufacturing and technology, BHEL contributes to the program’s success by ensuring the production and installation of high-quality solar components, thereby advancing India’s renewable energy landscape.
- Power Grid Corporation of India Limited (POWERGRID):
- POWERGRID, a central transmission utility, is actively involved in the implementation of the solar panel installation program. Focused on ensuring reliable power transmission, POWERGRID plays a crucial role in connecting the solar installations to the grid, promoting efficient energy distribution and contributing to the overall success of the initiative.
- National Hydroelectric Power Corporation (NHPC):
- NHPC, a leading hydropower company, is engaged in the widespread implementation of solar panels in one crore households. Leveraging its experience in the power sector, NHPC contributes to the diversification of renewable energy sources, supporting the government’s vision for a sustainable and clean energy future in India.
The rest will be covered by loans from institutions like REC Ltd.
Singh explained that the excess solar power generated will be used to pay off the loan taken by the public sector undertakings. The loan term is expected to be up to 10 years.
| Aspect | Details |
| Loan Interest | Typically 5% to 10%, subject to creditworthiness and terms |
| Loan Duration | Ranges from 5 to 15 years, providing flexibility for borrowers |
| Eligibility | Individuals, MSMEs, and community groups with a stable credit history and financial capacity |
| Target Beneficiaries | Those committed to sustainable energy, promoting widespread adoption for a greener future |
| Objective | Facilitate accessible solar financing, empowering individuals and entities for energy efficiency |
Prime Minister Narendra Modi announced the launch of the Pradhan Mantri Suryoday Yojna for one crore houses. It will also be open to households using more than 300 units of electricity per month, but they’ll have to install the rooftop panels themselves, although they’ll still be eligible for a subsidy.
Documents needed to Avail this Scheme
The specific documents required to avail the solar panel installation scheme may vary based on the financing institution and the nature of the scheme. However, common documents typically include:
- Application Form:
- Completed application form providing personal or business details.
- Proof of Identity:
- Valid government-issued identification (Aadhar card, passport, driver’s license, etc.).
- Proof of Address:
- Recent utility bills, rent agreement, or any document confirming the residential or business address.
- Income Proof:
- Salary slips, income tax returns, or financial statements for businesses.
- Credit History:
- Credit score reports or credit history statements.
- Property Ownership Documents:
- Property ownership proof, if applicable.
- Business Registration (For MSMEs):
- Registration documents for MSMEs, including GST registration.
- Solar Installation Quote/Proposal:
- Quotation or proposal from a certified solar panel installation provider outlining the project details and cost estimates.
- Bank Statements:
- Recent bank statements providing insights into financial stability.
- Legal Documents:
- Any legal documents related to the property or business.
- Employment Proof (For Individuals):
- Employment certificate or business ownership proof.
- Subsidy Application (if applicable):
- Application for subsidies or grants, if available under the scheme.
It is advisable to check with the specific financing institution or agency implementing the scheme for a comprehensive list of required documents. Additionally, the eligibility criteria and necessary documentation may be subject to periodic updates, so applicants should stay informed about any changes in requirements.
How to apply for this Scheme
- Visit the Official Website:
- Go to the Pradhan Mantri Suryoday Yojana’s official website at https://solarrooftop.gov.in.
- Register Online:
- Register by providing essential details such as your name, Aadhar card number, address, and phone number.
- Upload Necessary Files:
- Complete the registration process by uploading required documents through the online portal.
- Note Application ID:
- After submission, note down the application ID for future reference and tracking of your application status.
Direct Engagement with Authorized Agencies for Seamless Access to Solar Initiative Benefits
These agencies serve as the primary contact points, guiding applicants through the application process, providing information on eligibility criteria, and facilitating the necessary documentation. Applicants can directly engage with these authorized agencies to access the benefits of the scheme, ensuring a streamlined and credible implementation of the solar initiative.
| Level | Agencies | Contact Details |
| National Level | Solar Energy Corporation of India (SECI) | SECI Contact |
| National Thermal Power Corporation (NTPC) | NTPC Contact | |
| Power Finance Corporation (PFC) | PFC Contact | |
| REC Limited | REC Contact | |
| Indian Renewable Energy Development Agency
(IREDA) |
IREDA Contact | |
| State/District Level | State/District Renewable Energy Agencies | Contact your respective State/District Renewable Energy Agency |
| Municipal Bodies and Panchayats | Visit local municipal offices or Panchayat offices | |
| Connecting Online/ Helpline | Official websites of respective agencies | Check the “Contact Us” section on their official websites |
| State/District Renewable Energy Agency Websites | Search for online application portals or contact information | |
| National Helpline Numbers (if available) | Check respective agency websites for helpline/contact details |
Note: Always refer to the official websites of these agencies for the most accurate and up-to-date information on contact details and application procedures. Online application portals and helpline numbers may be available to facilitate easy communication for interested applicants.
The government is also working on making low-cost financing available for rooftop solar and is improving its vendor list to help consumers make informed decisions about solar panels’ quality.