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What is Pradhamantri Suryodaya Yojana? All about Target, Eligibility, Process etc ?

Finance Minister Nirmala Sitharam announced a rooftop solar panel scheme for 1 crore houses up which will offer 300 units for free under Pradhan Mantri Suryodaya Yojana.

Target :-PM Suryodaya Yojana has a target to solarize1 Cr. homes. The yojana is focussing on lower income group families.

Beneficiaries:- The consumers having monthly electricity consumption of 300 units or less. There might be some other conditions as well like income group/slab.

Nodal Agency:- Rural Electrification Corporation Ltd (REC) is the nodal agency for Suryodaya Yojana. As the nodal agency, REC is committed to provide a line of credit of Rs.1.2 lakh crore for this rooftop solar project under RESCO mode via eight CPSUs.

Implementing Agencies:- The following eight CPSUs have been designated as implementation agencies under the RESCO model:

  • NTPC Ltd

  • NHPC Ltd

  • Energy Efficiency Services Ltd (EESL)

  • Power Grid Corporation of India Ltd (PGCIL)

  • Solar Energy Corporation of India (SECI)

  • THDC India Ltd

  • SJVN Ltd

  • NEEPCO Ltd

Funding:- The projects by CPSUs under RESCO mode are being funded thorugh subsidy of 60% by MNRE and Loan of 40% by REC Ltd.

Installer:- The projects will be installed by local solar installers/vendors after empanelment by the implementing agency through tendering process or any other empanelment process.

Tenure:- The CPSU will recover its cost with 10 years by selling additional electricity to Discoms and after 10 Years the project will be handed over to the beneficiary.

Example Case :-

  • As we understood the project size must be higher than what is required as per the consumption by beneficiary

  • Suppose a beneficiary has consumption of 200 units/ month

  • Project size required will be 1.5 KW approx to set off his consumption requirement.

  • Project to be installed under Suryodaya may be 3 KW so that additional 200 units might be sold to Discom by CSPUs to recover their debt.

  • Total Project Cost for 3 KW project = Rs. 1,70,000

  • 40% investment by CPSU = Rs.68,000

  • Reconvery per month by selling 200 units = 200*2.71 (in case of Rajasthan) = Rs. 542 per month

  • Earning by CPSU in 10 years=65,000 approx

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