12-September-2024-Special-Article

PM SURYA GHAR – MUFT BIJLI YOJANA

The PM Surya Ghar – Muft Bijli Yojana, approved by the Union Cabinet in February 2024, is a central initiative aimed at promoting solar rooftop systems for households across India.

The scheme’s primary goal is to provide free electricity to 1 crore households through solar energy.

Recently, the Ministry of New and Renewable Energy issued draft guidelines outlining the financial support and payment security mechanisms for the scheme.

 

Highlights of the Draft Guidelines

Models for Implementation
The scheme operates under two models for rooftop solar installations:

• Renewable Energy Services Company (RESCO) Model:
  • RESCO is responsible for developing and owning the rooftop solar systems for a minimum of five years.
  • All operational and maintenance costs are handled by RESCO during this period.
  • Customers pay RESCO for the electricity generated and benefit from net metering on their bills.
  • RESCO can enter agreements with distribution companies (DISCOMs) to sell excess power to the grid through power purchase agreements.
• Utility Led Asset (ULA) Model:
  • In this model, the state DISCOM owns the rooftop solar system for at least five years.
  • After the project period, the ownership is transferred to the household.

Eligibility for Central Financial Assistance (CFA)

• The scheme applies to grid-connected rooftop solar systems installed on residential properties such as roofs, terraces, balconies, and elevated structures.
• Group net metering and virtual net metering installations are eligible under the guidelines.
• Exclusions: Households that already have rooftop solar systems installed are not eligible for the RESCO or ULA models.

Payment Security Mechanism

• A Rs 100 crore corpus will be established for payment security.
• This will be managed by a national program implementation agency, ensuring financial stability for solar projects.

PM Surya Ghar – Muft Bijli Yojana:

The primary aim is to promote rooftop solar adoption by providing substantial subsidies and ease of installation, allowing households to receive 300 units of free electricity every month.

Implementation Agencies

• National Level: Managed by the National Programme Implementation Agency (NPIA).
• State Level: Managed by State Implementation Agencies (SIAs), such as DISCOMs or Power/Energy Departments of respective states and Union Territories.

Role of DISCOMs

• As SIAs, DISCOMs are responsible for facilitating the rooftop solar installations.
• They ensure the availability of net meters and handle inspections and commissioning.

Subsidy Structure

• 60% subsidy for systems up to 2kW capacity.
• 40% subsidy for systems between 2kW to 3kW capacity.
• The subsidy is capped at a maximum of 3kW capacity per household.

Additional Features

• Model Solar Villages: A demonstration project to promote solar adoption in rural areas.
• Incentives for Local Bodies: Urban Local Bodies and Panchayati Raj Institutions will receive incentives to encourage rooftop solar installations in their respective areas.

Benefits of scheme

Economic Benefits

• Households will see reduced electricity bills and can earn additional income by selling surplus power to DISCOMs.
• A 3 kW system can generate over 300 units of electricity per month, aligning with the scheme’s objective to provide free electricity.

Solar Power Generation

• The scheme is expected to add 30 GW of solar capacity through residential rooftop installations.
• It is projected to generate 1,000 billion units (BUs) of electricity over a 25-year system lifespan.

Environmental Impact

• The scheme will help reduce 720 million tonnes of CO2 equivalent emissions, making a significant contribution to reducing India’s carbon footprint.

Job Creation

• The initiative is expected to generate around 17 lakh direct jobs in various sectors, including manufacturing, logistics, supply chain management, sales, installation, and maintenance.

Challenges in Implementing the Scheme

Household Reluctance

• Many households are hesitant to adopt rooftop solar systems, especially in states where free electricity is already provided by the government.

Space Constraints

• Installing rooftop solar systems for smaller homes (1-2 kW systems) is complicated due to limited terrace space, uneven terrain, and risks such as theft or vandalism.

Strain on DISCOMs

• DISCOMs face financial strain due to the net metering system, where households generate energy during the day but draw from the grid at night without proper compensation.

Storage Integration

• The absence of mandatory storage systems with rooftop installations may lead to grid management challenges, especially with the “duck curve” issue—where solar energy production is high during the day, but demand is low.

Quality Assurance

• Many customers lack the expertise to evaluate the quality of installed systems, leaving them vulnerable to substandard installations.

Other Government Initiatives for Solar Energy

• One Sun, One World, One Grid
• Pradhan Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA)
• National Smart Grid Mission (NSGM)
• International Solar Alliance (ISA)
• National Solar Mission
• Solar Park Scheme
• Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM)

Way Forward

• Targeted Beneficiary Outreach: Collaborate with local bodies to ensure that the scheme reaches economically weaker households consuming less than 300 units per month.
• Community Solar Projects: Encourage Community Solar Projects that allow shared solar generation for low-income households who cannot install rooftop systems.
• Revised Net Metering: Explore Time-of-Use (TOU) pricing, where consumers are charged based on the time of energy consumption, reducing the strain on DISCOMs.
• Mandatory Storage Integration: Make storage systems mandatory for all rooftop solar installations to ensure grid stability and optimize solar energy usage.

Mains Question:

1. “Discuss the key features of the PM Surya Ghar – Muft Bijli Yojana in promoting solar energy adoption and reducing carbon emissions in India.” (150 WORDS)