(SKY) scheme

[srikanthchowhan SIR IASGROUP]

Context: In an attempt to promote solar energy, the Gujarat government has announced Suryashakti Kisan Yojana (SKY) scheme under which farmers would be encouraged to generate electricity and sell their surplus to power distribution companies.

 

Highlights of the project:

• Under the first phase of project, the state government would provide financial assistance to 12,400 farmers out of the state’s total 15 lakh farmers to generate an estimated 175 MW of power.
• The state government and the Centre would jointly share 60% of the cost of installing a solar generating unit in the fields, while the farmers would need to chip in only 5%. The remaining 35% would be in the form of a loan by the state government at the rate of four to 4.5%.
• The government would also enter in a 25-year power purchase agreement with the farmers. Till the farmers repay their loan, the distribution companies would buy electricity from them at the rate of Rs 7 per unit and at Rs 3.5 per unit once the loans are settled. After that, the farmers would get ownership of the solar system.

 The Gujarat government on Saturday launched a solar power scheme for farmers- Suryashakti Kisan Yojana (SKY) enabling them to generate electricity for their captive consumption as well as sell the surplus power to the grid and earn an extra buck.

Announcing the pilot project of the scheme in Gandhinagar, chief minister Vijay Rupani termed it a revolutionary step towards empowering farmers to generate their own electricity using solar energy and help doubling their income.

As per the scheme, farmers having existing electricity connection will be given solar panels as per their load requirements. The State and Central governments will give 60 per cent subsidy on the cost of project. The farmer is required to take 5 per cent cost, while 35 per cent will be provided to him as an affordable loan with interest rates of 4.5-6 per cent.

Significance of the project:

At present, the farmers consume power purchased from power companies. The project will help them set up solar systems in their fields. After they consumer power according to their requirement, they can sell the surplus back to the distribution companies.