Which of the following statements are correct about PM Surya Ghar Muft Bijli Yojana ? (i) To install Solar plants on one crore houses to provide upto 300 unit free electricity every month. (ii) Provision of 30 percent subsidy for setting up rooftop solar plants. (iii) 100 percent online system for registration, application, approval & grant. (iv) Provision of loan at bank interest 4 percent to each applicant.

Correct — option (3), (i) & (iii).

Check each statement against the PIB release on the Union Cabinet's approval of 29 February 2024 and the Government of Rajasthan's Economic Review 2023-24.

(i) True. The scheme aims to install rooftop solar on one crore households and provide free electricity up to 300 units every month.

(ii) False. There is no flat 30 per cent subsidy. Central Financial Assistance is 60% of system cost for 2 kW systems and 40% of the additional cost for systems between 2 and 3 kW, capped at 3 kW.

(iii) True. The Economic Review lists a 100 per cent online system for registration, application, approval and grant among the scheme's main features.

(iv) False. Households can take collateral-free, low-interest loans, put at around 7% when the Cabinet approved the scheme — not 4 per cent.

Only (i) and (iii) hold, so the code is (i) & (iii), option (3).

The idea to remember: the subsidy is 60% of cost up to 2 kW and 40% of the extra cost up to 3 kW, not a flat rate, and the loans were put at around 7%.

Why the others are wrong

• (1)
  (i) & (iv) — Statement (i) is right, but (iv) is not. The scheme offers collateral-free, low-interest loans at around 7%, as stated when the Cabinet approved it in February 2024 — not 4 per cent.

  This code also leaves out (iii), which is true: the Economic Review 2023-24 lists a 100 per cent online process for registration, application, approval and grant.

• (2)
  (i), (ii) & (iii) — Statements (i) and (iii) are right, but (ii) is not. There is no 30 per cent subsidy: Central Financial Assistance is 60% of system cost for 2 kW systems and 40% of the additional cost between 2 and 3 kW.

  At February 2024 benchmark prices that came to ₹30,000 for 1 kW, ₹60,000 for 2 kW and ₹78,000 for 3 kW or more.

• (4)
  (i), (iii) & (iv) — Statements (i) and (iii) are right, but adding (iv) spoils the code. The scheme's loans are collateral-free and low-interest, at around 7% when the Cabinet approved the scheme, not 4 per cent.

  The Economic Review 2023-24 describes this feature as bank interest at concessional rates and gives no 4 per cent figure.

PM-Surya Ghar: Muft Bijli Yojana is a Union scheme for rooftop solar on homes. The Prime Minister launched it on 13 February 2024, and the Union Cabinet approved it on 29 February 2024 with a total outlay of ₹75,021 crore.

The free electricity comes from the household's own rooftop system. A 3 kW system generates more than 300 units a month on average, and households can earn by selling surplus power to DISCOMs.

Households apply for the subsidy through the National Portal (pmsuryaghar.gov.in), select a vendor there, and can take collateral-free loans for systems up to 3 kW.

Key facts

• PM-Surya Ghar: Muft Bijli Yojana was launched on 13 February 2024; the Union Cabinet approved it on 29 February 2024 with an outlay of ₹75,021 crore.
• Target: rooftop solar on one crore households, with free electricity up to 300 units every month.
• Central Financial Assistance: 60% of system cost for 2 kW systems and 40% of additional cost for 2–3 kW systems, capped at 3 kW.
• At February 2024 benchmark prices the subsidy came to ₹30,000 for 1 kW, ₹60,000 for 2 kW and ₹78,000 for 3 kW or higher.
• Rajasthan's target is rooftop solar on 5 lakh houses; 111.77 MW had been installed for 22,657 consumers up to December 2024.

Common traps

• ₹30,000 is the subsidy for a 1 kW system at February 2024 benchmark prices, not a 30 per cent rate. The rate is 60% of cost up to 2 kW and 40% of the extra cost from 2 to 3 kW.
• The scheme's loans were put at around 7% when the Cabinet approved it. A statement naming a different rate, such as 4 per cent, does not match the official description.
• Rajasthan's Mukhyamantri Nishulk Bijli Yojana is a separate State scheme: zero bills for domestic consumers using up to 100 units a month, from the June 2023 billing month. Keep its 100 units apart from Surya Ghar's 300.

UnlockIAS will link similar questions from RAS Pre 2023 and 2016 here once those papers are published on this site.

• practice — not a real PYQ

  Under PM-Surya Ghar: Muft Bijli Yojana, the Central Financial Assistance for residential rooftop solar is capped at a system capacity of –

  • (a)2 kW
  • (b)3 kW
  • (c)5 kW
  • (d)10 kW
  Answer(2) — The PIB release on the Cabinet decision says the CFA is capped at 3 kW. Option (1) 2 kW is the point where the rate drops from 60% to 40%, not the cap, and options (3) and (4) are above the cap.
• practice — not a real PYQ

  Consider the following statements about PM-Surya Ghar: Muft Bijli Yojana : A. The Prime Minister launched it on 13 February 2024. B. It provides Central Financial Assistance of 60% of system cost for 2 kW systems. C. The Union Cabinet approved it with a total outlay of ₹75,021 crore. D. At February 2024 benchmark prices, the subsidy for a 3 kW system is ₹30,000. Which of the above statements are correct ?

  • (a)A, B and C only
  • (b)A and D only
  • (c)B, C and D only
  • (d)A, B, C and D
  Answer(1) — A, B and C match the PIB release on the Cabinet decision of 29 February 2024. D is false: ₹30,000 was the figure for a 1 kW system, and a 3 kW system got ₹78,000. Options (2), (3) and (4) all include D.