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RBI NOTES > Blog > Current Affairs > Scheme > Government Issues Guidelines for ‘Model Solar Village’ Under PM-Surya Ghar: Muft Bijli Yojana
Current AffairsSchemeUncategorized

Government Issues Guidelines for ‘Model Solar Village’ Under PM-Surya Ghar: Muft Bijli Yojana

Last updated: October 24, 2024 10:04 am
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Key Details:PM-Surya Ghar: Muft Bijli Yojana Overview

The Indian government has recently issued operational guidelines for implementing the ‘Model Solar Village’ component under the PM-Surya Ghar: Muft Bijli Yojana. This initiative is designed to promote solar energy adoption across rural areas, with the goal of making village communities self-reliant in their energy needs. The scheme envisions the creation of one model solar village per district in India, showcasing the potential of solar energy as a sustainable power source.

Key Details:

  • Financial Outlay: The government has allocated ₹800 crore for this initiative, with ₹1 crore earmarked for each selected Model Solar Village.
  • Selection Process: Villages will be selected competitively, based on the renewable energy capacity they can install within six months of being identified as potential candidates by the District Level Committee (DLC). Eligible villages must be revenue villages with a population size above 5,000, or 2,000 for special category states.
  • Implementation: The implementation will be carried out by the State/UT Renewable Energy Development Agencies under the supervision of the DLC, ensuring a smooth transition to solar-powered communities.

PM-Surya Ghar: Muft Bijli Yojana Overview

The PM-Surya Ghar: Muft Bijli Yojana, launched on February 13, 2024, is a major initiative aimed at increasing solar rooftop capacity across India and empowering residential households to generate their own electricity. With a total outlay of ₹75,021 crore, the scheme aims to install rooftop solar systems in one crore households, providing free electricity up to 300 units per month.

Key features include:

  • Central Financial Assistance (CFA): Households can receive a subsidy covering 60% of the cost for systems up to 2 kW, and 40% for additional capacity up to 3 kW.
  • Collateral-Free Loans: Households can access low-interest loans to finance the installation of rooftop solar systems.
  • Model Solar Villages: Each district will develop a Model Solar Village, serving as a role model for rural solar adoption.

The scheme is expected to add 30 GW of solar capacity, significantly reduce carbon emissions, and create approximately 17 lakh jobs in various sectors related to solar energy​

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