PM-SURYA GHAR: MUFT BIJLI YOJANA: ROOF TOP SOLAR LOAN SCHEME – Harnessing Solar Power for a Brighter Future

As India continues its journey towards sustainable energy, the PM Surya Ghar – Muft Bijli Yojana is a revolutionary step towards promoting rooftop solar energy adoption. This central government scheme, launched on 15th February 2024, aims to provide free electricity to 1 crore households and promote the use of renewable sources of energy.

Subsidy benefit under the scheme: To make solar power more affordable, the government is offering the following subsidy benefit under the scheme: Subsidy for Residential Household:

• ₹30,000 for 1 kW solar rooftop system
• ₹60,000 for 2 kW solar rooftop system
• ₹78,000 for 3 kW and above

 The subsidy amount depends on the capacity of the rooftop solar system you install. Here’s a guide to help you choose the right unit:

How to Apply for the Scheme?

To avail of a rooftop solar loan, go to website http://www.pmsuryaghar.gov.in. Then go to consumer page and select “Apply Now” (or) Open the Login dropdown menu and select “Consumer Login”.

1. Enter a valid Registered Consumer Mobile Number for Registration, enter the valid Captcha, and select “Yes, I have read all the guidelines of PM Surya Ghar Muft Bijli Yojana.” Then, click on “Verify”.

2. Enter the valid Mobile OTP received through SMS and click on “Login”. After successful login, enter the profile details of the registration consumer by entering valid consumer Name, E-Mail, Address, State, District and PIN Code and then click on “Save”.

3. The registered consumer can submit applications either by clicking on “Apply for Solar Rooftop” or through Vendor Selection.

4. The consumer can apply for Solar Rooftop by selecting State, District and Electricity Distribution Company/ Utility, entering Consumer account number, and then clicking on “Fetch Details”.

5. After loading the consumer details, click on “Next” to start filling for submission of application. A feasibility report will be generated after submission of the application.

6. The customer needs to select the Vendor from whom they wish to purchase the equipment. A pop-up will be auto populated for availing the loan facility. If customer opts for availing loan, their application will be redirected to Jansamarth Portal through single sign-on.

7. The customer then has to select the Bank from where they wish to avail the Rooftop Solar Loan. They must select the State and City of the bank from where they want to avail the loan facility. Then, they must generate the Digital approval sanction letter.

To avail the scheme, applicants must:

1. Be an Indian Citizen
2. Own a house with a suitable rooftop for solar panel installation
3. Have a valid electricity connection.
4. Not have availed of any other solar panel subsidy

Benefits of the scheme:

• Promotion of Renewable Energy – The initiative accelerates India’s transition to clean and sustainable energy, reducing dependence on conventional energy sources.
• Reduction in Carbon Emissions – Widespread adoption of solar energy helps cut greenhouse gas emissions, contributing to a cleaner and healthier environment.
• Efficient Utilization of Resources – By harnessing sunlight, an abundant natural resource, the scheme ensures sustainable energy production without depleting non-renewable resources.

Financing Your Rooftop Solar Installation through Bank Loan

Eligibility for Loan:

• All individual applicants
• Individuals with a CIBIL Score of 680 & above (New-To-Credit individuals are also eligible)
• Have Roof Top Rights on which the installation is proposed
• Have sufficient Roof area as mandated by MNRE (Ministry of New and Renewable Energy) from time to time
• Latest Electricity Bill in the name of the applicant
• Applicant should have a savings account with the Bank
• Minimum net annual income of ₹3 lakhs (for solar rooftop systems above 3 kW)

Terms and Conditions:

• The loan has a maximum tenure of 120 months (10 years), including a 6-month moratorium period. There is no minimum tenure, and borrowers can prepay the loan without any penalty.
• Processing fee is NIL, making the loan more affordable for applicants.
• The loan is secured through hypothecation of the solar rooftop system, meaning the solar rooftop system itself serves as collateral.

Availing Subsidy:

• The borrower must apply for the subsidy and provide their loan account details for crediting the subsidy amount. If the subsidy is credited to an account other than the loan account, the borrower must provide an undertaking confirming that they will transfer the subsidy amount to the loan account.
• The EMI will be revised after the subsidy is credited to the loan account.

Disbursement Process: The loan amount (including borrower’s margin) will be disbursed directly to the vendor or EPC contractor upon submission of all required feasibility reports as mandated by MNRE. An upfront disbursement of 70% of the project cost, including the applicant’s margin contribution of 10% or 20%, will be made. The remaining 30% will be disbursed within 30 days of successful installation and post-installation verification by the bank.

Other conditions:

• Insurance is not mandatory for 1-3 kW installations. However, for installations above 3 kW, insurance is required, and the cost must be borne by the customer.
• Only new equipment/machineries allowed; installations cannot be relocated.
• PAN Card mandatory for applicants applying under solar rooftop scheme with installation capacity (3 KW to 10 KW).
• The Bank is not responsible for subsidy claim & disbursement process; applicants must claim it as per extant government guidelines.

The PM Surya Ghar – Muft Bijli Yojana is a transformative initiative empowering households with sustainable energy solutions. By offering subsidies, and loan support, the scheme encourages more people to switch to renewable energy while reducing their electricity expenses. Switching to solar energy is a step towards financial savings and a greener planet. The PM Surya Ghar scheme makes it easier than ever.

Start your solar journey today and contribute to India’s green future!

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