Guidelines for ‘Model Solar Village’ under PM-Surya Ghar: Muft Bijli Yojana

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Context

• On 9th August 2024, the Ministry of New and Renewable Energy notified the scheme guidelines for the implementation of the 'Model Solar Village' component under the PM-Surya Ghar: Muft Bijli Yojana.

Background of PM-Surya Ghar: Muft Bijli Yojana

• The Government of India approved the PM-Surya Ghar: Muft Bijli Yojana on 29th February 2024.
• This scheme aims to enhance the share of solar rooftop capacity and enable residential households to generate their own electricity. With an outlay of ₹75,021 crore, the scheme is set to be implemented until FY 2026-27.

Details

Feature	Details
Launch Date	January 22, 2024
Objective	Install rooftop solar panels on 1 crore households to provide up to 300 units of free electricity per month
Budget Allocation	Over ₹75,000 crore
Beneficiaries	Poor and middle-class families with an income of less than ₹2 lakh per annum
Free Electricity	300 units per month
Scheme Implementation	Ministry of New and Renewable Energy (MNRE)
Subsidy Details	Provided through the Central Financial Assistance (CFA) scheme of MNRE
Subsidy Amount	1-2 kW: ₹30,000 – ₹60,000 2-3 kW: ₹60,000 – ₹78,000 Above 3 kW: ₹78,000 (capped)
System Capacity	Maximum of 10 kW for rooftop solar installations
Power Purchase Agreement (PPA)	25-year agreement with DISCOM
Benefits	- Free electricity up to 300 units per month - Reduced electricity bills - Increased energy independence - Reduced carbon emissions - Job creation
Who Will Benefit	Poor and middle-class families, especially in remote areas with high electricity costs

Model Solar Village' Component

• The 'Model Solar Village' component aims to establish one Model Solar Village per district across India.
• The goal is to promote the adoption of solar energy and empower village communities to become self-reliant in meeting their energy needs.
• A total financial outlay of ₹800 crore has been allocated for this initiative, with each selected Model Solar Village receiving ₹1 crore in financial support.

Eligibility and Selection Process

• To qualify for the competition, a village must be a revenue village with a population exceeding 5,000 (or 2,000 in special category states).
• Villages will be assessed based on their distributed renewable energy (RE) capacity installed within six months after the potential candidate is declared by the District Level Committee (DLC).
• The village with the highest RE capacity in each district will be awarded a central financial assistance grant of ₹1 crore.

Implementation and Oversight

• The implementation of this scheme will be carried out by the State/UT Renewable Energy Development Agency, under the supervision of the District Level Committee (DLC).
• This approach ensures that the selected villages transition effectively to solar-powered communities, setting a benchmark for other villages across the country.

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PRACTICE QUESTION Q. Examine the objectives and benefits of the PM Surya Ghar: Muft Bijli Yojana. How does this scheme contribute to India’s renewable energy goals and address socio-economic disparities?

SOURCE: PIB