According to one statistic, electricity consumption in India has steadily increased over the years. In 2023, the requirements went on to 1,407 terawatt-hours. This requirement was majorly in households and the industrial sector. Since the requirement for electricity is doubling, the demand for installing solar power is also on the rise. Thanks to the Indian government initiative, the use of the rooftop solar scheme has attracted house owners and industrial people. According to Finance Minister Nirmala Sitaraman’s Budget 2024, approximately 1.28 crore registrations have taken place under the PM Surya Ghar Muft Bijli Yojana. The administration would make every conceivable effort to fulfil its goal of installing rooftop solar panels in one crore homes as soon as possible.
One of the main areas people consider for tapping solar energy is through the use of rooftop solar panels. It helps to produce clean electricity from renewable sources to decrease their carbon emissions. This article presents you with insight about the roof top solar scheme, eligibility, types, and other aspects.
What is Muft Bijli Yojna?
The Muft Bijli Yojana is a central government project that attempts to give free power to Indian homes. Prime Minister Narendra Modi introduced the initiative on February 15, 2024. The initiative would provide homes with a rebate for installing solar panels on their roofs. The subsidy will pay for up to 40% of the cost of the solar panels. The plan is anticipated to benefit one crore households in India. It is projected that the initiative will save the government Rs. 75,000 crore per year on electricity bills.
Overview of PM Surya Ghar Muft Bijli Yojana
The use of solar panels in Indian houses is set to change the electricity demand scenario. Moreover, the solar panel price with subsidy offered by the Indian government is further pushing the need. Solar panels are installed in homes as part of this project to provide power to residents as well as money for excess electricity output. To ensure that the people bear no financial hardship, the Central Government will pay substantial subsidies straight to their bank accounts as well as significantly concessional bank loans. Under the government subsidy, 40% of the installation cost will be covered by the government.
This initiative will assist poor and middle-class homes to save up to Rs. 15,000 to Rs. 18,000 crores each year by providing free solar electricity and selling excess power to electrical distribution firms. Below are some more insights about the rooftop solar scheme:
- Objective: The effort seeks to solarise 1 crore households with rooftop solar systems within a year, corresponding with the overall goal of achieving 40 GW of rooftop solar capacity by 2030 and reaching a 500 GW non-fossil fuel capacity by 2030.
- Nodal Agency Role: The Ministry of New and Renewable Energy (MNRE) has appointed REC as an agency to look over the implementation of the rooftop solar scheme.
- Key Public Enterprises Involvement: Eight key government-owned firms, including NTPC, NHPC, and PowerGrid, are expected to play a substantial role in the installation of rooftop solar systems. They will follow the RESCO model and receive financial support from REC.
Benefits of using Roof Top Solar Scheme
Investing in the rooftop solar scheme can help you get all the benefits the government offers. The benefits are not limited to end-users but also include the government. Some of these are-
- The government will be able to save up to Rs. 15,000 to Rs. 18,000 crores per year from free solar electricity and selling surplus power to distribution firms for charging electric vehicles.
- Charging for electric vehicles
- Entrepreneurship prospects for various suppliers in the supply and installation of solar panels.
- Opportunities for youngsters with technical abilities in the installation, manufacture, and maintenance of solar panels.
- The government’s electrical costs have been reduced.
- Increased use of renewable energy.
- Homeowners can enjoy Solar panel prices with a subsidy of Rs 9000-18000.
Eligibility Criteria for Roof Top Solar Scheme
To get into this scheme, you need to meet the eligibility criteria. These are-
Indian resident
- Should belong to poor and middle-income households
- Should own their residence with a roof suitable for installing solar panels.
- Valid electricity connection.
Overview of solar panel price with subsidy
The government, under the rooftop solar scheme, offers the subsidies listed below. These are –
- For up to 2 kW – Rs. 30,000 per kW
- For additional capacity up to 3 kW – Rs. 18,000 per kW
- Total subsidy for systems larger than 3 kW – Maximum Rs. 78,000
Types of Rooftop Solar Schemes
Rooftop solar schemes, more especially, refer to Initiatives that aim to have the population embrace solar power for their homes and offices. Most rebates, tax credits, or subsidies encourage the use of solar energy in power generation among property owners.
The goal of these programs is to increase commitment to photovoltaic energy instead of using conventional sources, which cause atmospheric pollution and emissions of greenhouse gases. Some types of Rooftop solar Schemes are:
– Net Metering: Specifically, a setup where the energy created in the rooftop solar panels is returned to the electrical grid, and the owner may use power from that established later.
– Feed-in Tariffs: A contractual premium that sets a fixed rate for the energy created and injected into the electrical supply system within a specific period.
– Green Tariffs: Electricity tariffs include a bonus for customers who generate solar power, especially in the developing world, to adopt solar power.
– Renewable Energy Certificates: A system in which a specific certificate is traded based on one megawatt-hour of clean energy produced. They can be traded, for example, and solar energy generators get paid for their solar power.
– Performance-Based Incentives: Development of actions to reward for the energy generated by solar panels, such as cash grants, rebates, and loans.
– Tax Incentives: Different tax incentives for homeowners and businesses, such as the Investment Tax Credit (ITC), or the Residential Renewable Energy Tax Credit (RREC), on rooftop solar systems.
– Property-Assessed Clean Energy (PACE) Financing: A method whereby property owners go for financing for renewable energy projects on their premises and repay it out of their property taxes.
– Solar Leasing/Rental: These are solar stations where a solar company installs a solar system.
– Virtual Net Metering: Net metering is the next logical step, where different business entities or tenants use electricity from a common solar facility.
– Community Solar: Co-ownership of solar installation where one can invest in a large solar farming system, subscribe for a fraction, or rent an area and then be awarded power credits even if one’s house cannot support solar installation.
Importance of Rooftop Solar Schemes
These markets have a critical function in achieving the global push towards renewable electricity sources. The following are some of the reasons why these programs are essential:
- Environmental benefits: The first benefit of rooftop solar schemes is the potential to cut greenhouse gas emissions and fight climate change. Solar provides electricity in a clean source since it does not emit hazardous gases like those from fossil sources of energy.
- Energy independence: Thus, property owners obtain energy independence as they generate their electricity, eliminating the dependency on the central grid. They can be of assistance in reducing the effects of the rising energy prices and also ensure they have a steady electric supply during an outage.
- Economic benefits: Some reasons suggest that rooftop solar schemes will spur jobs and economic activity. Most of the installation and maintenance of solar panels involves manual work, which means that there will be employment opportunities for people in the renewable energy sector. Moreover, the enhancement of solar energy may trigger a decrease in energy prices and will benefit both consumers and companies.
- Grid resilience: Solar energy also reduces the vulnerability of the grid to outages and instabilities when more people change to the solar power source. A large number of distributed energy resources can prevent small-scale power outages, and as a result, large-scale outages can be eliminated.
Usage of Rooftop Solar Schemes:
Rooftop solar schemes have huge popularity all across the globe, and more and more countries are also practicing policies to install roof solar panels. For example, Germany, Australia, and the United States are some of the countries in the world that use rooftop solar systems. India launched the National Solar Mission and the Kisan Urja Suraksha ev Bikas Khiet (KUSUM) to develop solar energy and provide electricity to farmers and rural homes. Some of its uses are:
– Decentralized energy generation: Feed-in tariffs promote the construction of large power stations while rooftop solar schemes produce electricity near consumers hence minimizing transmission losses.
– Renewable energy integration: These schemes assist in improving the level of renewable energy within the total consumption of energy available.
– Cost reduction: Solar photovoltaic systems on rooftops help in cutting down the cost of electricity consumption in homes and companies.
– Job creation: In addition, the establishment of rooftop solar has contributed to the development of other jobs in the manufacturing of the norms that are installed on the rooftops of buildings and structures, among other tasks.
– Government incentives: Governments of most nations provide monetary inducements, including tax credits, rebates, and grants for the installation of rooftop solar systems.
– Energy security: Otherwise, these schemes attempt to minimize dependence on central power plants which would lead to boosting energy security and stability.
– Technological advancement: Rooftop solar has emerged as one of the most promising segments of solar power; it has created innovations in the solar panel, battery storage, and smart grid industries.
While there are residential uses of rooftop solar, there are also utility applications where commercial complexes, factories, and government agencies are some of the biggest users of rooftop solar. They can produce considerable electricity and thus help reduce CO2 emissions by the energy industry.
Conclusion
Different types of rooftop solar schemes have numerous advantages for people and companies as well as directly to the planet. Thus, these programs allow fighting headedness and changing the Earth’s climate and also have a positive impact on economic development by reducing the share of greenhouse gas emissions and increasing energy independence. Although the cost of solar panels may be high in the beginning, subsidies as well as low prices make people use this clean energy to a larger extent.
While the emission of greenhouse gases and the effects of global warming remain challenging for economies across the world, more emphasis should be placed on rooftop solar schemes as agents of change to renewable energy. Through these investment programs and the offering of incentives for solar panel adoption, counties and states can come up with efficient solar solutions for the future. Technological advancement and reduction of cost on solar systems on roofs will improve rooftop solar schemes and become part of energy systems around the world.
Also Read: Union Budget 2024-25: Key Highlights
