The Gujarat administration has launched the Suryashakti Kisan Yojana (SKY) for the year 2026, aimed at enhancing farmer welfare. This initiative allows farmers to utilize solar energy for their irrigation needs and also to sell any excess power generated back to the grid. For the setup of solar panels, farmers are required to contribute only 5% of the total installation cost upfront. The Central and State governments will jointly provide a 60% subsidy, while the remaining 35% will be financed through low-interest loans provided by the state government to farmers, repayable over 7 years.
Through these solar panels, farmers can generate electricity and sell it to the state government. The government has committed to purchasing this electricity at a rate of Rs. 7 per unit for the initial 7 years, and subsequently at Rs. 3.50 per unit for the following 18 years. The SKY scheme is projected to benefit approximately 15 lakh farmers across 33 districts, providing them with solar power access through 7,060 feeders.
Latest Update on Gujarat Suryashakti Kisan Yojana
The Chief Minister of Gujarat has initiated the comprehensive Suryashakti Kisan Yojana, a scheme designed for farmers in Gujarat to harvest solar power. This program empowers farmers to generate electricity by installing solar panels on their farms for their own use and to earn revenue by selling surplus energy. A pilot phase of the Gujarat Suryashakti Kisan Yojana was initially launched on October 19, 2018, in the Bardoli district.
Details of Gujarat Suryashakti Kisan Yojana 2026
The Gujarat state government plans to implement the Suryashakti Kisan Yojana, also known as the SKY scheme, across the entire state. The primary objective is to harness solar energy and convert it into usable power. Farmers will now be able to generate electricity for irrigation and supply any excess power to the grid. This scheme is intended for farmers who are already connected to the power grid. It is recommended to include as many farmers as possible from a specific agricultural feeder. Farmers connected to a feeder should establish a committee to facilitate communication and implementation.
Each farmer will be equipped with a grid-connected solar photovoltaic (PV) system. The system size will be 1.25 kW PV for every horsepower (e.g., a 10 hp connection will receive a 12.5 kW PV system). Installation will be managed by accredited installers at rates determined through competitive bidding. "SKY" feeders will remain operational for 12 hours during daylight hours.
Funding for Suryashakti Kisan Yojana
Cost Allocation
- Farmers will contribute a minimum of 5% as an initial investment.
- A loan will be arranged for 35% of the cost on behalf of the farmer.
- 30% of the cost will be covered by a subsidy from the Government of Gujarat (facilitated through the loan).
- An additional 30% subsidy will be provided by the Government of India.
Loan Arrangement
The state government will secure a loan for 65% of the capital expenditure from NABARD at an interest rate of 6% or less, over a period of 7 years.