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The Pradhan Mantri Suryoday Yojana: What Is It? How It Can Help You
Welcome to our blog, where we provide you with the most recent information on government initiatives to improve India. Today, we examine the Indian government’s ground-breaking Pradhan Mantri Suryoday Yojana. Through the utilization of solar energy, this program seeks to give farmers electricity throughout the day so that they may continue to run their farms. We shall examine the salient characteristics, advantages, and effects of the Pradhan Mantri Suryoday Yojana on rural India in this blog article. Now let’s explore how this program is enhancing the lives of farmers throughout the country.
Prime Minister Narendra Modi declared the start of the Pradhan Mantri Suryodaya Yojana as his first action after the Ram Mandir Pran Pratishtha event. With incentives from numerous states to aid in its execution, this ambitious program seeks to give rooftop solar power systems to one crore families nationwide. This program offers those who are thinking about installing rooftop solar plants a great chance to save a lot of money on power while also embracing sustainable energy.
According to reports, states like Uttar Pradesh, Bihar, Rajasthan, Maharashtra, and Madhya Pradesh have already started installing rooftop solar systems. Nevertheless, despite the possible advantages, there doesn’t seem to be much public excitement.
The federal government is offering a sizable 40% subsidy under this program for the installation of 3-kilowatt solar panels. Customers who choose a 10-kilowatt capacity are eligible for a still-substantial 20% discount.
The Council on Energy, Environment, and Water’s Senior Programme Lead, Neeraj Kuldeep, emphasized the enormous potential for rooftop solar installation in India’s rural and urban regions. The huge scope of this project is demonstrated by research indicating that more than 640 gigawatts of rooftop solar plants might be placed in residences. Approximately 7 to 8 lakh families have already adopted rooftop solar technology, taking advantage of the government’s capital subsidy initiative.
Kuldeep estimated that a 12–14x surge would provide 20–25 gigawatts of solar power capacity, highlighting the benefits of a significant rise in rooftop solar households. In addition to its positive effects on the environment, this surge may help states reduce their reliance on electricity subsidies and strengthen the financial standing of power distribution corporations.
Applications for the installation of solar plants in residences can be made using an online portal on the official website starting in 2022. Important information that must be provided during the application process includes the name of the state, the power distribution company, the mobile number, the email address, and the number of the electricity bill.
How much does installing a rooftop solar panel cost under the Pradhan Mantri Suryodaya Yojana? Verify finance, break-even, subsidies, and other information.
To meet the 500 GW non-fossil fuel capacity objective by 2030, the government has set a target of producing 40 GW of solar electricity yearly in the following five years.
Households in India are becoming more aware of solar rooftop panels as a result of the rising interest in green energy options. Though Prime Minister Narendra Modi announced on January 22 the Pradhan Mantri Suryodaya Yojana with the audacious goal of installing solar panels in over 10 million homes, the nation has not made great strides in this regard, with only 700,000–800,000 homes currently powered by solar energy.
India’s rooftop solar (RTS) capacity has increased to 2.7 GW since 2016. To achieve 40 GW of rooftop solar, the Ministry of New and Renewable Energy (MNRE) launched the Rooftop Solar Programme Phase-II in 2019. We anticipate that the Pradhan Mantri Suryodaya Yojana (PMSY) will hasten the use of solar power. That being said, there are two reasons why RTS adoption hasn’t accelerated as much as it could: a lack of public awareness and a lack of easily accessible RTS financing. However, we are optimistic that demand and usage for RTS will rise with government backing,” stated Vikas Agarwal, Co-Founder and Chief Business Officer of Credit Fair, a consumer lending fintech start-up that provides 8–10% interest rate personal loans for RTS setup. Credit Fair further provides free EMIs.
“So far, we have helped install solar panels in over 2,000 homes. Approximately 7-8 lakh houses currently have solar power. Additionally, we are committed to installing one million household rooftop solar systems nationwide in the next five years in line with the GOI and PM Modi’s goal,” Agarwal continued.
Installed on building roofs, photovoltaic panels—also referred to as rooftop solar panels—are linked to the main power supply unit. Because of this installation, users will pay less for power that is linked to the grid. The costs associated with a solar rooftop system include the initial capital outlay and ongoing upkeep.
To meet its 2030 goal of 500 GW of non-fossil fuel capacity, the government has set an annual target of 40 GW for solar power output over the following five years. But with just 2.2 GW installed in houses, the Indian National Congress President Mallikarjun Kharge tweeted on Tuesday that only around 70% of the 40 GW objective had been reached.
Cost of Break-even
What is the price of installing a solar rooftop system? When installing 3–5KW of solar power, the average home will pay between Rs. 2.20 lakh and Rs. 3.5 lakh. It’s interesting to note that consumers’ financial strain may be lessened by managing this expense through affordable EMIs of around Rs 4,000–5,000 per month, which is comparable to energy rates. With Credit Fair’s simple financing options, customers may pay as little as Rs4,000–Rs5,000 in convenient monthly installments. According to Agarwal of Credit Fair, “We strive to keep EMI comparable to electricity bills so there is no additional burden of EMI on the consumer.”
Source: Solar Navitas
According to a LinkedIn article by Navitas Solar, a 3kW solar plant typically uses 360 units, or kWh, of power each month. Installing a 3kW solar plant, however, would need around 300 square feet of shadow-free space. Therefore, a 3kW solar plant will save a total of Rs 30,240 per year. Without subsidies, a 3kW solar system typically costs about Rs 1,22,979. On the other hand, the government offers a 40% subsidy for a residential rooftop. Thus, the identical equipment will cost about Rs 73,787 after the rebate. The computation of the payback period is further influenced by several additional variables, including rising grid power tariff prices, the availability of financial incentives, net metering, and the simplicity of installation with an EPC. Nonetheless, a solar system’s payback time typically lasts between two and three years.
Source: Solar Navitas
Through the idea of Net Metering, any excess energy produced by the solar panels is routed back into the grid, earning customers credits to offset future utility bills, making the entire process more financially viable. As a result, overall power expenses are significantly decreased by balancing contributions and consumption. The government also provides subsidies to lower the cost of installation. Under the Rooftop Solar Program Phase – II, homeowners and housing societies can install rooftop solar systems up to 10kW and get between Rs. 9,000 and Rs. 18,000 per kW.
Capacity of Rooftop Solar Systems
Relevant Subsidy (₹)
As much as 3kW
18,000/kW
More than 3kW and up to 10kW
9,000/kW*
Over 10 kW
1,17,000**
The first 3 kW are priced at Rs. 18,000 per kW, while the remaining capacity up to 10 kW is priced at Rs. 9,000 per kW. The fixed subsidy amount applies to rooftop solar systems with a capacity greater than 10kW.
In addition, digital lenders are streamlining the installation procedure by working with nearby installers and guaranteeing simple, rapid loan disbursement. As evidence of the initiative’s effectiveness, Credit Fair has assisted in financing over 2300 roofs so far. Significant environmental benefits have also resulted from these initiatives, as they have reduced carbon emissions by approximately 13,000 tons, or the planting of over 500,000 trees. They have also reduced annual power expenditures by about Rs. 12 crore, underscoring their financial advantages “added Agarwal.
