Solar stocks in focus today: Cabinet approves PM-Surya Ghar initiative

Under the leadership of Prime Minister Shri Narendra Modi, the Union Cabinet has given its approval to the PM-Surya Ghar: Muft Bijli Yojana, allocating a total budget of Rs. 75,021 crore. This initiative aims to install rooftop solar panels and offer free electricity up to 300 units monthly for one crore households. The scheme was officially launched by the Prime Minister on February 13, 2024.

Key Highlights:

Central Financial Assistance (CFA) for Residential Rooftop Solar:

1. The scheme offers a CFA covering 60% of the system cost for 2 kW systems and 40% for additional system costs between 2 to 3 kW capacity, capped at 3 kW.
2. Households can apply for the subsidy through the National Portal, enabling them to select suitable vendors for rooftop solar installation.
3. Collateral-free, low-interest loans at approximately 7% interest are available for installing residential RTS systems up to 3 kW.

Other Features:

1. Each district will develop a Model Solar Village to promote rooftop solar adoption in rural areas.
2. Urban Local Bodies and Panchayati Raj Institutions will receive incentives for encouraging RTS installations.
3. The scheme includes provisions for payment security for renewable energy service company (RESCO) models and a fund for innovative RTS projects.

Outcome and Impact:

• This initiative empowers households to reduce electricity bills and earn additional income by selling surplus power to DISCOMs. A 3 kW system can generate over 300 units per month for a household.
• The scheme aims to add 30 GW of solar capacity through rooftop solar in the residential sector, generating 1000 BUs of electricity and reducing 720 million tonnes of CO2 equivalent emissions over 25 years.
• An estimated 17 lakh direct jobs in manufacturing, logistics, supply chain, sales, installation, O&M, and related services are expected to be created.

Availing Benefits:

The Government is actively promoting awareness and encouraging applications from interested households. To avail benefits, households can register on https://pmsuryaghar.gov.in.

Stocks:

Conclusion:

The PM-Surya Ghar: Muft Bijli Yojana marks a significant stride towards promoting solar energy adoption in Indian households. With its holistic approach encompassing financial support, incentives, and awareness campaigns, the scheme is poised to deliver substantial benefits, fostering a sustainable and energy-efficient future for the nation.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.