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Source-This post on Pradhan Mantri Suryodaya Yojana is based on the article “Budget 2024 | One crore households to get 300 units free electricity every month through rooftop solarisation” published in “The Hindu” on 1st February 2024.
Why in the News?
In the Interim Budget 2024, the Finance Minister announced that one crore households will receive rooftop solarization through Pradhan Mantri Suryodaya Yojana.
What is Pradhan Mantri Suryodaya Yojana?
| Aspect | Details |
| About | 1. This scheme was recently announced on the auspicious occasion of the consecration of the Ram Mandir in Ayodhya by the PM Modi. 2. It aims to install rooftop solar panels on one crore households. |
| Nodal agency | Rural Electrification Corporation (REC) |
What is the Significance of this Scheme?
1) It is an attempt to achieve the goal of 40 GW rooftop solar capacity by March 2026.
2) The scheme will help households to save between Rs 15,000 and Rs 18,000 annually. It will also enable them to sell any surplus electricity to distribution companies (DISCOMs) as part of the net metering policy.
3) The net-metering policy permits rooftop solar power users to feed their excess power back into the grid, thereby reducing their electricity expenses.
Note– The mechanism of Net Metering was started in India in 2009. The Ministry of New and Renewable Energy (MNRE) overseeing its implementation.
What other major announcements have been made for the energy sector in Budget 2024?
1) A ‘viability gap funding’ (VGF) will be provided for harnessing offshore wind energy potential for an initial capacity of one gigawatt. These are wind farms located in the sea.
Note– The government aims to install 500 GW of renewable energy by 2030. As part of this initiative, the government aims to achieve a 10 GW offshore wind capacity by 2030. Presently, India’s onshore wind energy capacity amounts to 44 GW.
What is the India’s current solar capacity?
1) According to the Ministry of New and Renewable Energy’s website, solar power installed capacity in India has reached around 73.31 GW as of December 2023.
2) A recent report from the think tank Council on Energy, Environment and Water (CEEW) CEEW reveals that residential rooftop solar installations make up only 20% of the total, with the majority occurring in the commercial and industrial sectors.
Note- India aims to achieve 50% of its electric power capacity from non-fossil fuel sources by 2030, as outlined in its updated Nationally Determined Contribution (NDC) to the UNFCCC.
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