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How to Save Big on Electricity Bills with the Pradhan Mantri Suryodaya Yojana?

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Did you know India’s solar power installed capacity has shot up 30x over the last decade, from 2.6 GW in 2014 to 73.31 GW as of December 23? Doesn’t this sound interesting?

If you want to save money on your electricity bills while supporting India’s ambitious goal of achieving Net Zero Carbon emissions by 2070, you’ve come to the right place. This article will explain what Pradhan Mantri Suryodaya Yojna is about, including its features, eligibility, procedure, and much more. Also, we will explain how this scheme can help you save up to Rs. 18000 on your electricity bills.

Continue reading to find out how.

What is Pradhan Mantri Suryodaya Yojana (PMSY) and what are its objectives?

PMSY is a visionary initiative by Prime Minister Narendra Modi, who announced it in January 2024, shortly after the Pran Pratishtha ceremony at the Ayodhya Ram Mandir. PMSY is expected to boost India’s solar capacity over the coming years.

Pradhan Mantri Suryodaya Yojana (PMSY) is a government scheme that aims to provide free solar power to rural areas and help poor and middle-class people save on their electricity bills.

The scheme involves installing rooftop solar panels on one crore households nationwide, with financial support from the central and state governments.

The government will install free solar rooftops under this scheme. Even the beneficiaries of PMSY will get up to 300 units of free solar electricity.

Also, with this scheme, one can reduce dependence on traditional power grids and generate additional income of up to Rs. 18000/- from surplus electricity through net metering.

PMSY promotes self-reliance and energy security and contributes to a cleaner and greener environment. PMSY is a scheme that can transform the lives of millions of Indians and the future of the nation.

List the eligibility criteria for applying for PMSY

To be eligible for this scheme,

  • the applicant must be a citizen of India.
  • The electricity connection must be registered in the beneficiary’s name. In the case of a rented home, if you pay your electricity bill in your name and have permission from the owner to use the roof for solar rooftop installation, you can install the Rooftop Solar System.
  • The applicant must belong to the Economically Weaker Section (EWS), Lower Income Group (LIG), or Medium Income Group (MIG) categories.
  • The applicant must register on the National Portal for Rooftop Solar and submit the application form and the required documents, such as electricity bill, Aadhaar card, bank account details, etc.

Benefits of the Pradhan Mantri Suryodaya Yojana (PMSY)

  • PMSY is a government scheme that aims to provide reliable power to rural areas and help poor and middle-class people save on their electricity bills.
  • The scheme will create new opportunities for companies installing, maintaining, and operating rooftop solar systems.
  • The scheme will enhance India’s energy security and resilience, reducing the dependence on imported fossil fuels and the vulnerability to power outages.
  • The scheme will support India’s commitment to reduce greenhouse gas emissions and mitigate the impacts of climate change.
  • The scheme will also improve the beneficiaries’ quality of life and health, as it will provide access to clean, safe, and reliable electricity.

Process for Applying for Pradhan Mantri Suryodaya Yojna (PMSY)

Step 1: Register at the National Portal (https://solarrooftop.gov.in/) and submit your online application form and the required documents.

Step 2: Your application will be sent directly to the relevant DISCOM for technical feasibility approval. If all information is correct, the application will be approved. Otherwise, the application may be declined or returned for revision.

Step 3: After receiving TFR approval, sign an agreement with the registered vendor and install the plant. Registered vendors are under the ‘ vendors in my area’ tab in the applicant’s National Portal account.

Step 4: After installing the plant, submit installation details to the National Portal and upload a photo of the plant. Please provide these details for plant inspection and net metering.

Step 5: DISCOM (Distribution Company) officials will inspect the system based on MNRE’s technical criteria. Upon successful inspection, the DISCOM will install the net meter.

Step 6: After installing the net meter, the DISCOM official approves the details on the portal and generates an online commissioning certificate. The certificate will now be visible in your account.

Step 7: After generating the commissioning certificate, you can submit an online subsidy/CFA claim request by providing your bank details and a clear copy of a canceled bank cheque or passbook.

Step 8: If all details are correct, the subsidy/CFA will be released directly to your bank account within 30 days of submitting the claim.

Calculation of Subsidy Payable in PMSY

Plant Capacity (in kW)Applicable Subsidy in the General States/UTsApplicable Subsidy in Special Category States/UTs
Upto 3 kWRs. 18,000Rs. 20,000
Above 3 kW and up to 10 kW (subsidy limited to 10 kW capacity).  Rs. 18000/- per kW for the first 3 kW, followed by Rs. 9000/- per kW Rs. 20000/- per kW for the first 3 kW, followed by Rs. 10000/- per kW
For Resident Welfare Associations (RWA) and Housing SocietiesRs. 9000 per kWRs. 10,000 per kW

Conditions for Claiming Subsidy Under Pradhan Mantri Suryodaya Yojna

  1. Rooftop solar plants must be installed using only Indian-made solar panels/modules, including solar cells. Consumers should obtain certification from the vendor in this regard.
  • To calculate the CFA/subsidy, use the lower total solar module capacity, solar inverter capacity, or DISCOM-approved capacity.
  • The applicant must provide their mobile number and email to register on the National Portal. If the vendor’s email or mobile number is provided, it will be rejected, and the vendor will be blacklisted from further participation in the program/scheme.
  • The applicant’s electricity connection and bank account must be in their name; otherwise, the application will be rejected.

The Bottom Line

With a clear sky on average 200-250 days per year, India provides a tremendous opportunity for solar platforms. The Pradhan Mantri Suryodaya Yojana (PMSY) is a groundbreaking scheme designed to offer greener and free power to rural areas while also assisting financially struggling people in saving money on their electricity bills.

The Pradhan Mantri Suryodaya Yojana (PMSY) aims to install rooftop solar panels in one crore households across the nation. This will reduce the dependence on carbon-intensive electricity sources and generate additional income from surplus electricity through net metering and subsidies.

With India ranking fifth in solar installation capacity globally, PMSY can promote self-sufficiency and energy security while contributing to a healthier, more sustainable environment. Applying for this scheme allows you to participate in the solar revolution and change your life and the country’s future.

  1. What is the National Portal for Rooftop Solar?

    The national rooftop solar portal, launched by PM on 30.07.22,  is a unified online platform to apply for rooftop solar plant installation and receive solar subsidy benefits. This portal allows for online tracking of the installation and subsidy release processes.

  2. How much will a solar rooftop panel cost?

    The initial investment covers the cost of components, labor, and panel mounting modules. Houses with maximum solar access can recoup their installation costs in approximately 6-8 years.

  3. What is Net Metering, and how Can I earn from it?

    Net metering is a system in which solar panel owners receive credits for excess electricity they generate and return to the grid. These credits can be used to offset the cost of electricity purchased from the grid when your solar panels do not produce enough power. Or you can sell excess power to commercial units and make money.

  4. What are the advantages of a rooftop solar system?

    Some of the benefits that rooftop solar system has include- 
    Massive cuts in electricity bills
    No need for additional transmission and distribution lines.
    Reduces T&D losses because power consumption and generation are colocated.
    Improved tail-end grid voltages and reduced system congestion.
    Long-term energy and environmental security by lowering carbon emissions.

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I’m Archana R. Chettiar, an experienced content creator with
an affinity for writing on personal finance and other financial content. I
love to write on equity investing, retirement, managing money, and more.

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