Suryashakthi Kisan Yojana

Suryashakthi Kisan Yojana

Suryashakthi Kisan Yojana

India is a country with enormous potential for solar energy capacity as the majority of the country’s tropical landmass is located ideally for peak solar radiation. The State Government of Gujarat perceived this to be an opportunity to double the income of the farmer and initiated a pilot project called Suryashakthi Kisan Yojana. This scheme offers finance for the installation of solar panels and serves the electricity demands faced by the farmers. Moreover, it enables the farmer to gain profit by selling the excess electricity generated after domestic consumption.

About Suryashakthi Kisan Yojana

The government has planned to launch this scheme across 33 districts with 12,400 farmers participating in it. Further, it has aimed to set up 137 feeders, which will generate about 175 MW of electricity every year. The overall budget estimated for the implementation of this scheme is Rs.870 Crores. The Government is in agreement with the farmers to purchase electricity for a period of 25 years. The electricity supply for irrigation purposes was 8 hours, which will be 12 hours of uninterrupted supply under this scheme. By 2022, it is expected that 100 GigaWatts (GW) of energy capacity be generated from solar power.

Planning Operation of Suryashakthi Kisan Yojana

The period of SKY scheme lasts for a time of 25 years that has been split into two phases. In the first phase i.e., for 7 years the Government will buy electricity at the rate of Rs 7 per unit from the farmers until the loan is repaid. After seven years, the government will buy power from farmers at the rate of Rs.3.5 for 18 years during which the farmer owns the profit. The electricity generated can also be sold to power companies.

The Central and the State Government jointly bear 60% of the total cost incurred for the installation of solar panels. The farmer should initially spend 5% of the expenses made for the establishment and the balance 35% will be paid in a 7-year period. For this purpose, bank loans are provided.

Bank Loan

NABARD (National Bank for Agriculture and Rural Development) lends financial support to the farmers. Loans for the farmers will be sanctioned by NABARD at an interest rate of 4.5%.

Note: This scheme is for those farmers who are the current consumers of power companies.

Post by Marlin Priya

IndiaFilings is India's largest online compliance services platform dedicated to helping people start and grow their business, at an affordable cost. We were started in 2014 with the mission of making it easier for Entrepreneurs to start their business. We have since helped start and operate tens of thousands of businesses by offering a range of business services. Our aim is to help the entrepreneur on the legal and regulatory requirements, and be a partner throughout the business lifecycle, offering support at every stage to ensure the business remains compliant and continually growing.