Free Electricity Scheme: How Does It Work And To Avail The Subsidy?

According to the Press Information Bureau, PM Surya Ghar Muft Bijlee Yojana is a central scheme that aims to provide free electricity to one crore households in India, who opt to install rooftop solar electricity units. The households will be able to get 300 units of electricity free every month. It was approved by the Union Cabinet on February 29, with an outlay of Rs 75,021 crore. Through this yojana, the households will be able to save on electricity bills and also earn additional income through the sale of surplus power to distribution companies (DISCOMs).

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How Does PM Surya Ghar Muft Bijlee Yojana Work?

“The scheme provides for a subsidy of 60 per cent of the solar unit cost for systems up to two kilowatts (kW) capacity and 40 per cent of additional system cost for systems between two to three kW capacity. The subsidy has been capped at three kW capacity. At current benchmark prices, this will mean Rs 30,000 subsidy for one kW system, Rs 60,000 for two kW systems, and Rs 78,000 for three kW systems or higher,” according to a press release issued recently.

Who Are Eligible For The Scheme: The applicant needs to be an Indian citizen. He must own a house with a roof that is suited for the installation of solar panels. The household needs to have a valid electricity connection. Also, the household should not avail of any other subsidy for solar panels.

Can You Avail Of A Loan To Finance The Solar Unit: For installation of residential RTS systems up to three kW, households will be able to access collateral-free low-interest loan products of around seven per cent at present. As decided by the Reserve Bank of India (RBI), the interest rate has been pegged at 0.5 per cent above the prevailing repo rate.

How Do You Avail Subsidy: First, register on the portal. Then, select your State & Electricity Distribution Company. Next, enter your electricity consumer number, mobile number & email. You could also log in with your consumer number and mobile number. As per the form, apply for the rooftop solar panel. Get the plant installed by any of the registered vendors once you get the feasibility approval. Submit the plant details and apply for net meter, once the installation is completed. After the installation of the net meter and inspection by DISCOM, a commissioning certificate will be generated from the portal. After you get the commissioning report, submit the bank account details and a canceled cheque through the portal. You will receive your subsidy in your bank account within 30 days.