Understanding the Pradhan Mantri Surya Ghar Muft Bijli Yojana

What is the Pradhan Mantri Surya Ghar Muft Bijli Yojana (PMSGMBY)?

The Pradhan Mantri Surya Ghar Muft Bijli Yojana (PMSGMBY) is a government initiative focused on enhancing rooftop solar installations for households throughout urban and rural India. This scheme aims to install solar panels to generate electricity for domestic use, promoting affordability and accessibility to solar energy for the general public. The goal is to cover 10 million households, providing financial assistance through subsidies to promote solar adoption and decrease reliance on traditional electricity sources.

How is the Subsidy Provided under PMSGMBY?

• The subsidy is credited directly to the applicant’s savings bank account.
• The disbursal is managed through the Public Financial Management System (PFMS) operated by the Ministry of New and Renewable Energy (MNRE).
• This system ensures transparent and prompt transfers to vendors and applicants based on their performance ratings.

Main Features of PMSGMBY

• Single Digital Platform: Banks are mandated to utilize the National Portal for consumer validation, installation verification, and feasibility assessments.
• No Physical Verification: A completely digital approach is adopted to eliminate manual document checks and resulting delays.
• Financial Product Development: A new credit instrument tailored for rooftop solar projects is encouraged for broader acceptance.
• Efforts are in place to promote active participation from private sector banks.
• Integration with Financial Systems: Applicants will be introduced to CIBIL scores to improve credit discipline.
• Renewable finance obligations and Priority Sector Lending (PSL) support will be assessed.
• Technical Support and Awareness: Expansion of branch-level activities, product training for bank and vendor staff, and consumer awareness campaigns at grassroots levels.

What is the Loan Mechanism under the Scheme?

• The loan is available at Repo Rate plus 50 basis points (Repo + 50 bps).
• The loan is collateral-free.
• The maximum loan amount offered is up to ₹2 lakh.
• As of recent data, approximately 4.1 million applications have been received.

Progress under PMSGMBY

• 1.1 million rooftop solar installations have been successfully completed.
• Approximately 375,000 loan applications have been submitted.
• Nearly 2 lakh loans have already been sanctioned.
• Banks such as State Bank of India, Punjab National Bank, Bank of Baroda, Canara Bank, and Union Bank of India are actively participating.

Challenges Faced in Implementation

• OTP Delivery Issues: One-Time Passwords (OTPs) are frequently delayed or not received on the PM Surya Ghar Yojana portal, hindering applicant authentication.
• Vendor Acceptance Delays: After vendors accept installation requests, the system may fail to allow applicants to proceed to loan sanctioning due to technical glitches.
• Discom Data Issues: Data from electricity distribution companies (Discom) is often not properly entered into the system, blocking the final subsidy release.
• User Interface Problems: Applicants encounter challenges when needing to change bank account details post-submission.
• Solution Proposed: Introducing a feature that allows applicants to change bank details during the submission process, complete with a confirmation popup to verify selections before finalizing.

SYNOPSIS

The Pradhan Mantri Surya Ghar Muft Bijli Yojana aims to accelerate solar energy adoption by offering subsidies and low-interest loans for rooftop solar installations. The scheme emphasizes a digital-driven approach for transparency and ease of access. However, technical challenges including OTP delays and incomplete data integration continue to hinder its smooth rollout. Strengthening digital infrastructure and enhancing process flexibility are essential for achieving the ambitious targets set by the scheme.

Frequently Asked Questions (FAQs)

Q1. What is the primary goal of the Pradhan Mantri Surya Ghar Muft Bijli Yojana?
Answer: The primary goal of the PMSGMBY is to promote rooftop solar installations by providing financial assistance and subsidies to 10 million households in India, making solar energy accessible and affordable.

Q2. How is the subsidy amount disbursed to applicants?
Answer: Subsidies are directly credited to the applicant's savings bank account through the Public Financial Management System (PFMS), ensuring quick and transparent disbursal.

Q3. What are the challenges in implementing the PMSGMBY?
Answer: Challenges include delays in OTP delivery, vendor acceptance issues, incorrect Discom data, and problems with the user interface, which all hinder the application process.

Q4. What kind of loans are offered under the PMSGMBY?
Answer: Loans under the scheme are available at Repo Rate plus 50 basis points, are collateral-free, and can be up to ₹2 lakh, aimed at facilitating solar installations.

Q5. How many applications have been received under the scheme so far?
Answer: Approximately 4.1 million applications have been received for the PMSGMBY, indicating strong interest in rooftop solar installations.