Govt Plans to Simplify Solar Power Scheme Loan Process; Here's What Can Be Eliminated

The government is planning to simplify loan application process for rooftop solar installations under the PM Surya Ghar Muft Bijli Yojana. The plan intends to streamline documentation, reduce procedural steps, potentially eliminating site inspections by banks to boost its adoption. The scheme targets 1 crore household installations by 2026-27, offering subsidised loans at 7 percent interest, as per Economic Times report.

The report further reveals that the Ministry of New and Renewable Energy is in discussions with the Department of Financial Services and public sector banks to ease the process for grant of loans under the scheme, thereby reducing the time taken for loan and subsidy disbursement.

Read More: Servotech Enrolled In PM Surya Ghar Yojana For 62 Discoms

PM Surya Ghar Muft Bijli Yojana: What’s it about?

Launched by Prime Minister Narendra Modi on 15 February 2024, the initiative aims to provide free electricity to households by facilitating the installation of rooftop solar panels. It offers access to collateral-free, low-interest loans at around 7 percent from public sector banks for the installation of residential rooftop solar (RTS) systems up to 3 kW. The national portal for the scheme is integrated with the Jan Samarth portal, a national platform for credit-linked government schemes.

The scheme aims to support households in installing solar panels and generating their own electricity to achieve rooftop solar installations in 1 crore households in residential sector by FY 2026-27 with an outlay of Rs 75,021 crore.

The Economic Times report reveals that the scheme has seen 685,763 installations so far since its launch in February, reaching 86 percent of the total installations in the decade before that.

The initiative is expected to add 30 GW of solar capacity through rooftop installations in the residential sector, making a significant contribution to India's renewable energy goals of achieving 500 GW from non-fossil energy capacity by 2030.