MNRE Issues Clarification on Residential Rooftop Solar Subsidy

Applications submitted before February 13, 2024, will receive CFA under the previous structure


Residential rooftop solar applications submitted before February 13, 2024, will not be applicable for central financial assistance (CFA) under the new PM Surya Ghar: Muft Bijli Yojana, the Ministry of New and Renewable Energy (MNRE) has said.

Under the new program announced by Prime Minister Narendra Modi recently, a subsidy of ₹30,000 (~$361)/kW will be provided for residential rooftop solar systems up to 2 kW for applications submitted after February 13, 2024. An additional ₹18,000 (~$217)/kW will be available for systems of over 2 kW and up to 3 kW capacity, while for projects exceeding 3 kW, depending on the average monthly power consumption of the household, the total subsidy will be capped at ₹78,000 (~$939).

The program, with an outlay of ₹750 billion (~$9.04 billion), aims to install rooftop solar systems in 10 million households in a bid to reduce the electricity expenditure of poor and middle-class households.

The ministry also clarified that all earlier applications would receive CFA under the notified subsidy structure issued on January 5, 2024.

The older structure states that CFA for systems ranging from 1 kW to 3 kW will be ₹18,000 ($216)/kW for general states and ₹20,000 ($240)/kW for special category states. Systems above 3 kW and up to 10 kW capacities will receive CFA of ₹9,000 (~$108)/ kW in general states and ₹10,000 ($120)/kW in special category states.

Additionally, an individual household with up to a 3 kW system in a general category state is eligible for a subsidy of ₹18,000 ($216)/kW, an increase from the earlier ₹14,588 (~$175)/ kW. However, the ministry removed CFA for systems with over 10 kW capacity for individual households.

Mercom recently reported that Central Public Sector Undertakings (CPSU) designated as the implementing agencies may no longer be involved in executing the PM Surya Ghar: Muft Bijli Yojana. Minister R K Singh had announced that CPSUs will receive a 60% subsidy, up from 40%, for setting up solar systems, with the income from the sale of surplus electricity used for loan repayment.