Gujarat Suryashakti Kisan Yojana (SKY) 2021 – Solar Panel Subsidy Scheme


Gujarat government has launched Suryashakti Kisan Yojana (SKY) 2021 for farmers welfare. Under this scheme, farmers can use solar energy for irrigation purposes and can also sell the surplus power via grid. For installation of solar panels, farmers will only have to pay 5% upfront of the total cost. Central & State govt. will provide subsidy of 60% while for the rest 35%, the state govt. will provide low cost loans to the farmers for 7 years.

Farmers can generate power through these solar panels and can sell it to the state government. Govt. will procure electricity at a rate of Rs. 7 per unit for 7 years while at Rs. 3.50 for the remaining 18 years. SKY scheme is expected to cover 15 lakh farmers in 33 districts and will provide them with solar power through 7,060 feeders.

Gujarat Suryashakti Kisan Yojana Latest Update

Gujarat CM starts ambitious Suryashakti Kisan Yojana as a power harvesting scheme for Gujarat farmers. This scheme enables farmers to generate electricity by installing solar panels in their farms for their captive consumption and also earn from selling the surplus power. Gujarat Suryashakti Kisan Yojana pilot phase was launched earlier on 19 October 2018 from Bardoli district.

Gujarat Suryashakti Kisan Yojana 2021 Details

The state govt. of Gujarat will implement Suryashakti Kisan Yojana or SKY scheme in the entire state. The main aim is to harness the solar energy and to put it in use to generate power. Now farmers can generate electricity and utilize it for irrigation purpose and sell the additional energy via grid. Scheme is for farmers already connected to the grid. Desirable to include as many farmers as possible on a given AG feeder. Farmer’s on a feeder should form a committee for ease of communication & implementation.

Farmer will be provided with a grid-connected solar PV system. 1.25 kW PV system to be provided per hp (For eg- 10 hp = 12.5 kW PV system). Installation through empanelled installers at competitively discovered rates. “SKY” feeder to be kept ON during daytime for 12 hours.

Suryashakti Kisan Yojana Funding

Cost Share

  • 5% Minimum upfront investment from farmer
  • 35% Loan on behalf of farmer
  • 30% Subsidy from Govt. of Gujarat (through loan)
  • 30% Subsidy from Govt. of India

Loan Facilitation

State Govt. will take loan of 65% of capital expenditure from NABARD at <=6% interest for 7 years.

Suryashakti Kisan Yojana Returns

Net Metering

  • Farmers would utilize the solar electricity, and inject the surplus generated electricity into the grid.
  • Farmer’s would earn a revenue based on net evacuated energy at the end of the billing cycle.

Revenue During First 7 Years

  • Rs. 3.50 per kWh, feed-in tariff by DisCom, plus
  • Rs. 3.50 per kWh, evacuation-based incentive (subsidy) by Govt. of Gujarat upto a maximum of 1,000 kWh per hp per year of contract load.

Revenue During Next 18 Years

Rs. 3.50 per kWh, feed-in tariff by DisCom

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Net Revenue

Farmer will be regularly credited revenue after deduction of loan EMI.

Major Benefits of Suryashakti Kisan Yojana

  • Relief from electricity bill.
  • Additional income from sale of surplus electricity.
  • 12 hours of daytime grid-quality power.
  • Return on investment within 8 to 18 months.
  • Ownership of PV system after loan repayment.
  • 7 years performance guarantee on PV system.
  • Insurance on PV system by State Govt.
  • Land under PV modules can be used for cropping.
  • Option of increasing height of PV modules.
  • Development of rural economy.

Environment Benefits from Suryashakti Kisan Yojna

  • Clean energy generation
  • Avoid requirement of large parcels of land
  • Incentive for efficient water utilization

Technical Benefits from Suryashakti Kisan Yojana

  • Improved transmission & distribution efficiency
  • Maximum utilization of existing grid infrastructure
  • Avoid establishment of dedicated transmission facility

SKY Benefits to Public

  • Reduction in cross-subsidy surcharge
  • Reduction in government subsidy burden

Salient Features of SKY Scheme in Gujarat

The important features and highlights of this SKY scheme are as follows:-

  • Solar Panels Purchase Cost – Out of the total cost, farmers will only have to pay 5%. 60% would be given as subsidy amount while 35% would be given as low interest rate loans for 7 years. The loan repayment time is fixed at 7 years.
  • Selling Additional Power – Farmers can sell the additional power to state government. For first 7 years, govt. will purchase power at a cost of Rs. 7 per unit while govt. will purchase the power at Rs. 3.5 per unit for next 18 years.
  • This scheme will provide a huge relief to the farmers and will also generate additional income. Farmers will be able to recover the cost of investment within the next 8 to 18 months.
  • Currently, farmers are getting electricity for 8 hours for irrigation purpose. After the successful implementation of this project, farmers will get electricity upto 12 hours.
  • Suryashakti Kisan Yojana will also resolve the concerns of farmers of getting power supply only at night.
  • Extra Earnings for the Govt. – Currently, farmers in Gujarat pay around 50 paise / unit for electricity supply for irrigation purposes. The state government spends about Rs. 4,500 – 5,000 crore per year as subsidy on electricity for irrigation purpose. This subsidy cost can be brought down by proper implementation of SKY Scheme.
Gujarat Suryashakti Kisan Yojna Launch

Overview of Suryashakti Kisan Yojana in Gujarat

Total (AG) Consumers 15 Lakh
Total No. of (AG) Feeders 7,060
Total Districts Covered 33
Total Contract Load 172 Lakh hp (Avg: 11.43 hp/ farmer)
Solar PV Potential 21,000 MW
Total Project Cost Rs. 1,05,000 crore
Govt. of India Subsidy 30%
Govt. of Gujarat Subsidy 30%
Farmer’s Loan 35%
Farmer’s Upfront Pmt. 5%
Suryashakti Kisan Yojana Overview

Govt. is making every possible effort to install 100 giga watts (GW) of energy capacity from solar power till 2022. This move will contribute towards the realization of PM Modi’s vision of “Doubling Farmers Income by 2022”.

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