Budget 2024: 300 Units Of Free Electricity Per Month For One Crore Homes Through Rooftop Solar

Expanding on the PM Suryodaya Yojana unveiled last month, the Union Budget presented on 1 February has announced that one crore houses will be enabled to obtain upto 300 units of free electricity per month through rooftop solar technology.

"Savings up to Rs 18,000 crore are expected for households annually through free energy and selling the surplus to the distribution companies", Union Finance Minister Nirmala Sitharaman said while presenting the Interim Budget in the Lok Sabha.

Moreover, it will create entrepreneurship opportunities for a large number of vendors for supply and installation, while also generating employment prospects for skilled youth in manufacturing, installation, and maintenance, the Finance Minister added.

It may be recalled that hours after the consecration ceremony in Ayodhya on 22 January, Prime Minister had announced Pradhanmantri Suryodaya Yojana.

The government has been pushing for increased adoption of rooftop solar systems in both non-residential and residential buildings since at least 2015.

By 2019 the government's stated aim was to achieve an aggregate capacity of 40 GW in rooftop solar by 2026, with 4 GW coming from the residential sector.

As of November 2023, India's cumulative rooftop solar capacity has reached 10.49 GW. Residential rooftops contribute about 21 per cent to the total installed capacity according to available statistics.

The Suryodaya scheme will help in accelerating the adoption of rooftop solar systems among residential units as part of the overall attempt to reach a target of 40 GW rooftop solar capacity.