The Union Cabinet has approved the PM-Surya Ghar scheme with a total outlay of Rs 750 billion.
The scheme will provide a Central Financial Assistance (CFA) of 60 per cent of system cost upto capacities of 2 kW and 40 per cent of additional system cost for systems between 2 to 3 kW capacity. The CFA will be capped at 3 kW capacity. At current prices, this means a subsidy of Rs 30,000 for 1 kW systems, Rs 60,000 for 2 kW systems and Rs 78,000 for 3 kW systems or higher. Households can avail collateral-free loans around 7 per cent interest for installing rooftop solar systems up to 3 kW under the scheme. The scheme is estimated to result in addition of 30 GW of rooftop solar capacity.