The Union Cabinet approved a ₹75,021-crore package for the “PM-Surya Ghar: Muft Bijli Yojana” (PM Free Electricity scheme) to promote rooftop solar (RTS) installations in India.

The scheme claims to be able to provide 300 units of “free electricity” every month to one crore households.

The Centre will fund 60% of the cost for installing for 2 kW (kilowatt) systems and 40% of the cost for systems from 2-3 kW capacity.

For the remaining costs, households will be able to “access collateral-free low-interest loan products of around 7% at present for installation of residential RTS systems up to 3 kW.

A “Model Solar Village” will be developed in each district of the country to act as a role model for adoption of RTS in rural areas.