India's Push for Renewable Energy: Model Solar Villages Initiative Launched

The Ministry of New and Renewable Energy has allocated ₹800 crores to establish model solar villages across India. This groundbreaking initiative, announced on Monday, aims to create self-sufficient villages powered entirely by solar energy, providing a blueprint for small towns nationwide to follow.

What is the model solar villages initiative?

The 'Model Solar Village' initiative is part of the larger PM Surya Ghar Muft Bijli Yojana, launched by Prime Minister Narendra Modi on February 15, 2024. The guidelines for this scheme were released on August 9, emphasizing the promotion of renewable energy and the empowerment of rural communities.

According to the ministry, these model villages will demonstrate the immense potential of solar power, inspiring other communities to adopt sustainable energy solutions. Under the initiative, one village from each district with the highest renewable energy capacity will receive a central financial assistance grant of ₹1 crore.

The PM Surya Ghar Muft Bijli Yojana is a transformative effort to revolutionize India's energy landscape by offering free electricity to households. The scheme provides a substantial subsidy, covering up to 40% of the cost of installing rooftop solar panels, benefiting around 1 crore households across the country. This initiative aims to accelerate the adoption of solar power on a massive scale.

The government expects to save approximately ₹75,000 crores annually in electricity costs through this scheme. The program has already generated significant interest, with 28 crore registrations and 14.84 lakh applications submitted.

Households seeking to benefit from the subsidy can apply through the National Portal, where they can also choose from a list of approved vendors for rooftop solar installations. The portal offers helpful tools, including system size calculators, vendor ratings, and a benefits calculator, to aid in decision-making.

Additionally, households can access collateral-free, low-interest loans with an interest rate of around 7% for installing rooftop solar systems of up to 3 kW. These systems are expected to add 30 GW of solar capacity to the residential sector, significantly contributing to India's renewable energy targets.

Financially, the scheme offers multiple benefits. Besides reducing electricity bills, homeowners can earn additional income by selling excess solar power back to distribution companies.

Over the anticipated 25-year lifespan of these rooftop solar systems, the initiative is projected to generate 1,000 billion units of electricity and cut carbon dioxide emissions by 720 million tons, making a significant positive impact on the environment.

This ambitious project is a crucial step towards achieving India's sustainability goals and could serve as an inspiration for other nations seeking to embrace green energy solutions.