New Delhi: The Center has said it would encourage Panchayati Raj institutions to promote rooftop solar installations in the rural community under the PM-Surya Ghar: Muft Bijli Yojana, and urged states to work for successful implementation of the scheme.

The Panchayati Raj Ministry has written to states to share guidelines of the ambitious scheme launched in February 2024 to install rooftop solar panels and provide free electricity up to 300 units per month to one crore households.

In a letter dated July 8 to all state departments, Panchayati Raj Ministry Additional Secretary Chandra Shekhar Kumar asked officials to share the operational guidelines of the scheme with Panchayati Raj institutions, officials of state Panchayati Raj departments and other interested parties for greater understanding.

He also called for taking "necessary actions to actively engage in the successful implementation of Prime Minister Surya Ghar: Muft Bijli Yojana."

The additional secretary said the scheme would also incentivize Panchayati Raj Institutions (PRIs) to promote rooftop solar installations in the rural community and would contribute to the adoption of clean energy in rural areas and create a new source of income for the PRIs.

The Center approved the plan to increase the share of rooftop solar power capacity and allow residential households to generate their own electricity.

The scheme has an outlay of Rs 75,021 crore and will be implemented till fiscal year 2026-27.

It provides central financial assistance (CFA) of 60 percent of the system cost for 2 kW systems and 40 percent of the additional system cost for systems between 2 kW and 3 kW capacity. The CFA will have a limit of 3 kW.

The plan has Rs. A budget of Rs 800 crore to develop a 'model village' in each district for adoption of rooftop solar in rural areas and an outlay of Rs 1,000 crore to incentivize local bodies to promote rooftop solar (RTS) installations ) in their areas.

At current reference prices, this will mean a subsidy of Rs 30,000 for 1 kW systems, Rs 60,000 for 2 kW systems and Rs 78,000 for systems of 3 kW or more.

The guidelines also provide an option to waive the subsidy, which can be availed through the PM Surya Ghar National Portal.