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					</table><p>The Union Cabinet has approved the Pradhan Mantri-Surya Ghar: Muft Bijli Yojana, aimed at installing rooftop solar systems on 10 million households, with a total outlay of ₹750.21 billion (~$9.05 billion) until the financial year (FY) 2025-26.</p>
<p>Prime Minister Narendra Modi had <a href="https://www.mercomindia.com/pm-surya-ghar-to-offer-%e2%82%b978000-for-3-kw" target="_blank" rel="noopener">announced</a> the new subsidy program for residential consumers on February 13, 2024.</p>
<p>Under the new program, 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).</p>
<p>Consumers must apply for subsidy through the <a href="https://pmsuryaghar.gov.in" target="_blank" rel="noopener">National Portal</a> and select a vendor to install the rooftop solar system. The portal will provide consumers with information on system sizes, benefits calculators, vendor ratings, etc., to help with the decision-making process.</p>
<p>Under the program, valid for two years – FY 2023-24 and FY 2024-25 &#8212; consumers will get access to collateral-free, low-interest loan options at as low as 7% to install rooftop solar systems of up to 3 kW capacity.</p>
<p>Households are expected to save on electricity costs as well as earn additional income through the sale of surplus power from the rooftop solar systems to the state DISCOMs.</p>
<p>The government will develop a model solar village in every district of the country to promote rooftop solar adoption in rural areas. It will also incentivize urban local bodies and Panchayati Raj institutions to promote rooftop solar in their respective areas.</p>
<p>According to Anurag Thakur, Minister of Information and Broadcasting, only domestically manufactured solar cells and modules will have to be used in these projects.</p>
<p>The program budget will allow for payment security for renewable energy service company-based installations and also fund innovative projects in the rooftop solar segment.</p>
<p>The PM-Surya Ghar program is expected to add up to 30 GW of residential rooftop solar capacity, generate 1,000 BUs of electricity, and reduce 720 million tons of CO2e emissions over a 25-year project lifetime.</p>
<p>The program is expected to create ~1.7 million direct jobs in manufacturing, logistics, supply chain, sales, installation, operation and maintenance, and other services.</p>
<p>The government, however, has yet to clarify the subsidy structure for residential welfare associations and group housing societies adopting rooftop solar.</p>
<p>Recently, the Maharashtra State Electricity Distribution Company <a href="https://www.mercomindia.com/maharashtra-3-million-residential-rooftop-solar-target" target="_blank" rel="noopener">announced</a> plans to install 3 million rooftop solar systems on houses in the state under the new program. The state has set a district/region-wise target and directed all field offices to focus on technical feasibility approvals and meter testing.</p>


Cabinet Approves New Rooftop Solar Subsidy Program with Outlay of ₹750.21 Billion


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					</table><p>The Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/" target="_blank" rel="noopener">MNRE</a>) has issued new and simplified central financial assistance (CFA) calculations for rooftop solar systems installed by residential consumers. The ministry also launched a portal to enable transparent processing of the subsidy.</p>
<p>The central government subsidy is available only to those who register on the national <a href="https://solarrooftop.gov.in/" target="_blank" rel="noopener">portal</a> by December 31, 2022. It will be released after clearance by the inspecting authority (the regional power distribution company).</p>
<p>The national portal is part of the simplification procedure to register the subsidy applications and help track the bank transfer of subsidies to the residential consumers.</p>
<p>The subsidy calculation will now be on the capacity of the rooftop solar system instead of the earlier method <a href="https://mercomindia.com/mnre-lowers-benchmark-costs-rooftop-solar-projects-fy-2022/" target="_blank" rel="noopener">based</a> on the benchmark cost set every year for these consumers.</p>
<p>According to the new procedure, for up to a 3 kW rooftop solar system, a subsidy of ₹14,588 (~$185)/kW will be provided. Previously, according to the benchmark costs calculations set by MNRE, a 1 kW rooftop solar system would be granted a subsidy of ₹18,768 (~$237)/kW.</p>
<p>For consumers who install rooftop solar systems of 3 kW to 10 kW, a subsidy of ₹14,588 (~$185)/kW is applicable for the first 3 kW capacity and ₹7,294 (~$92)/kW for the rest of the capacity.</p>
<p>For systems of 10 kW and above, a fixed subsidy of ₹94,822 (~$1,198) will be provided. Earlier, there was no subsidy for systems above 10 kW.</p>
<p><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-39093" src="https://mercomindia.com/wp-content/uploads/2022/08/CFA-rooftop-solar-systems-final-png.png" alt="CFA rooftop solar systems final png" width="542" height="217" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/08/CFA-rooftop-solar-systems-final-png.png 542w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2022/08/CFA-rooftop-solar-systems-final-png-300x120.png 300w" sizes="auto, (max-width: 542px) 100vw, 542px" /></p>
<p>The applicable subsidies will be notified each calendar year under the simplified procedure. They will be made available to the beneficiaries who have registered their applications on the portal during the year.</p>
<p>Early this year, MNRE <a href="https://mercomindia.com/residential-consumers-can-soon-order-rooftop-solar-system-online/" target="_blank" rel="noopener">issued</a> a simplified procedure for residential consumers to install the rooftop solar system through any vendor of their choice under the Rooftop Solar Program. The ministry had said that it would launch a national portal wherein homeowners can apply for rooftop systems, get approvals, and track their progress.</p>
<p>The Department of Expenditure, Ministry of Finance recently <a href="https://mercomindia.com/daily-news-wrap-up-online-platform-open-access/" target="_blank" rel="noopener">issued</a> a new procedure for fund flow under Central Sector programs, including grid-connected rooftop solar program (GCRTS) Phase I and II. Under the new procedure, entities must open a zero-balance savings account in the Bank of Maharashtra for the subsidies to be credited.</p>
<p>According to the <a href="https://mercomindia.com/product/q1-2022-india-rooftop-solar-market-report/" target="_blank" rel="noopener">Mercom India Rooftop Solar Market Report Q1 2022</a>, India <a href="https://mercomindia.com/india-added-over-456-mw-of-rooftop-solar-capacity-in-q1-second-highest-in-a-quarter/" target="_blank" rel="noopener">added</a> 456 MW of rooftop solar capacity in the first quarter of 2022, recording a 34% year-over-year growth. The installation numbers were the second highest in any quarter after Q2 2021.</p>


Residential Rooftop Solar Systems Above 10 kW Are Eligible for Subsidy of ₹94,822

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