New Delhi: In a landmark achievement for India’s renewable energy journey, the PM Surya Ghar: Muft Bijli Yojana (PMSGMBY) has crossed a significant milestone of empowering 10 lakh households with rooftop solar power as of March 10, 2025. Touted as the world’s largest domestic rooftop solar initiative, the scheme is playing a pivotal role in reshaping the country’s energy landscape by promoting clean energy and reducing dependence on conventional power sources.
Launched by Prime Minister Narendra Modi on February 13, 2024, the scheme aims to revolutionize household energy consumption by offering free electricity for up to 300 units monthly to one crore households by the fiscal year 2026-27. This ambitious solar mission not only ensures energy security but also supports the broader goals of Aatmanirbhar Bharat (Self-Reliant India) and carbon neutrality.
Scheme Objectives and Benefits: Empowering Indian Homes with Free Electricity
The core objective of PMSGMBY is to promote rooftop solar installations in residential homes and Resident Welfare Associations (RWAs) across the country. By installing solar panels, households can enjoy free electricity, thereby significantly lowering their energy bills while contributing to environmental conservation.
Major Benefits of PM Surya Ghar Scheme:
- Free electricity up to 300 units monthly per eligible household.
- Reduction in electricity bills, leading to substantial financial savings.
- Mitigation of carbon emissions, equivalent to planting 100 trees per solar installation.
- Projected annual savings of ₹75,000 crore for the government on electricity costs.
- Creation of 17 lakh direct jobs, boosting India’s employment rate and green economy.
The environmental impact of the scheme is profound, as it is expected to reduce carbon dioxide emissions by 720 million tonnes over the lifespan of the installed systems.
Financial Assistance and Subsidy Structure: Making Solar Power Accessible to All
To ensure widespread adoption, the Ministry of New and Renewable Energy (MNRE) has designed a lucrative financial model involving subsidies and collateral-free loans. As of March 2025, the government has already disbursed ₹4,770 crore in subsidies to over 6.13 lakh beneficiaries.
Detailed Subsidy Structure:
| Solar Plant Size | Suitable Monthly Consumption | Subsidy Amount |
| 1-2 kW | 0-150 units | ₹30,000 to ₹60,000 |
| 2-3 kW | 150-300 units | ₹60,000 to ₹78,00 |
| >3 kW | Above 300 units | ₹78,000 |
The scheme also extends benefits to RWAs for common facilities, offering ₹18,000 per kW subsidy.
Loan Facility:
- Collateral-free loans up to ₹2 lakh
- Subsidized interest rate of 6.75%
- Loans available through 12 Public Sector Banks
- 3.10 lakh applications received, 1.58 lakh loans sanctioned, and 1.28 lakh loans disbursed so far.
With an automated process via the National Portal (www.pmsuryaghar.gov.in), subsidies are directly transferred to the applicant’s bank account within 15 days, ensuring transparency and efficiency.
National Progress and State-wise Achievements: Solar Power Lighting Up India
The scheme has seen rapid implementation across states, thanks to rigorous monitoring and policy support. As of March 2025, 47.3 lakh applications have been received, reflecting the strong public response.
Top-Performing States:
- Gujarat – Leading the charts with 3.51 lakh households (41.47% of total installations)
- Kerala – 65,423 households benefitted (7.73%)
- Uttar Pradesh – 73,602 households (8.69%)
- Maharashtra and Rajasthan – Significant contributors to the installation numbers.
Union Territories like Chandigarh and Daman & Diu have set examples by achieving 100% of their rooftop solar targets on government buildings.
States such as Rajasthan, Maharashtra, Gujarat, Tamil Nadu, and Uttar Pradesh are also aggressively pushing installations, contributing substantially to India’s green energy transition.
Creation of Model Solar Villages: Promoting Energy Self-Reliance at Grassroot Level
A unique feature of the scheme is the development of Model Solar Villages. Under this initiative, one village per district is selected to demonstrate the potential of solar energy adoption. These villages receive ₹1 crore each for setting up comprehensive solar infrastructure, serving as inspirational models for surrounding regions.
Eligibility for Model Solar Villages:
- Must be a revenue village
- Population of 5,000+ (2,000+ in special category states)
This component of the scheme directly promotes energy self-reliance and rural empowerment.
Boost to Domestic Manufacturing and Make in India
Aligning with the Make in India mission, the scheme mandates the use of Indian-manufactured solar modules and cells. This not only enhances self-reliance but also strengthens the domestic solar manufacturing ecosystem, creating jobs in solar panel, inverter, and component production.
The government estimates that the scheme will enable the installation of 30 GW of rooftop solar capacity by 2027, of which 3 GW has already been installed.
Union Government’s Push and Future Vision
Union Minister for New and Renewable Energy, Shri Pralhad Joshi, has been actively engaging with financial institutions to facilitate smooth credit flow. During the National Workshop on Mobilizing Finance for Renewable Energy held in Mumbai, emphasis was placed on:
- Lowering financing costs
- Innovative financial models
- Leveraging global climate funds
- Public-private partnerships
- Expansion of green financial instruments
With a total project outlay of ₹75,021 crore, the scheme is a critical step towards achieving India’s National Solar Mission goals.
How to Apply: A User-Friendly Digital Process
Indian households can easily apply for the scheme by visiting the National Portal and following these steps:
- Register and submit basic details
- Choose a vendor from the empanelled list
- Select system size using the benefits calculator
- Apply for a loan if required
- Submit subsidy claim after installation
Within 15 days of submitting a redemption request, the subsidy gets approved, and the amount is credited to the consumer’s account.
Projected Impact by 2027: A Game-Changer for India’s Energy Landscape
If the PM Surya Ghar Yojana continues its current momentum, it will:
- Generate 1,000 billion units (BU) of clean electricity over 25 years
- Save ₹75,000 crore annually on energy costs
- Reduce CO2 emissions by 720 million tonnes
- Create 17 lakh direct jobs in the renewable energy sector
- Empower one crore households with free solar energy by 2026-27
Conclusion: Paving the Way for a Sustainable and Energy-Secure India
The PM Surya Ghar: Muft Bijli Yojana is not just a scheme but a national movement towards sustainable development, clean energy, and economic empowerment. By transforming 10 lakh homes into solar-powered units in just over a year, India has demonstrated its commitment to combating climate change and promoting renewable energy.
With clear goals, robust financial backing, and strong political will, the scheme is poised to become a global model for clean energy adoption. As India marches towards its Net Zero emission targets, this rooftop solar revolution will undoubtedly play a crucial role in shaping a greener, cleaner, and energy-secure future for generations to come.
FAQ
1: What is the PM Surya Ghar: Muft Bijli Yojana and how does it benefit Indian households?
Answer:
The PM Surya Ghar: Muft Bijli Yojana (PMSGMBY) is a flagship rooftop solar scheme launched by the Government of India in February 2024 to provide free electricity up to 300 units per month to 1 crore residential households. The scheme offers financial subsidies and low-interest loans to encourage rooftop solar panel installations. By generating solar energy, households can significantly reduce their electricity bills, contribute to lowering carbon emissions, and become energy self-reliant. Additionally, the government estimates that each household can save up to ₹15 lakh over 25 years from reduced energy costs.
2: How can I apply for the PM Surya Ghar: Muft Bijli Yojana, and what is the process to claim the subsidy?
Answer:
To apply for the PM Surya Ghar Yojana, households must register on the official National Portal (www.pmsuryaghar.gov.in). The application process includes:
1. Online registration with basic household details.
2. Vendor selection from a list of approved solar panel providers.
3. System size selection using the online calculator.
4. Loan application (optional) for up to ₹2 lakh at a 6.75% interest rate.
5. Installation of the rooftop solar system.
6. Submission of the subsidy claim after installation.
Once verified, the subsidy amount is directly credited to the applicant’s bank account within 15 days of submitting the claim.
3: What is the subsidy amount provided under the PM Surya Ghar scheme, and how is it calculated?
Answer:
The subsidy amount under the PM Surya Ghar scheme depends on the size of the solar system and the household’s average electricity consumption:
● 1-2 kW system: ₹30,000 to ₹60,000 subsidy
● 2-3 kW system: ₹60,000 to ₹78,000 subsidy
● Above 3 kW: ₹78,000 maximum subsidy
For Resident Welfare Associations (RWAs), a subsidy of ₹18,000 per kW is offered for common facilities. The scheme also ensures that the upfront installation cost is low, and with financing options, households can install a 3kW system with an investment as low as ₹15,000.
4: Which states and regions are performing the best under the PM Surya Ghar: Muft Bijli Yojana, and what is the target by 2027?
Answer:
As of March 2025, the top-performing states include:
● Gujarat: 3.51 lakh households benefited (41.47% of total installations)
● Kerala: 65,423 households
● Uttar Pradesh: 73,602 households
● Maharashtra and Rajasthan: Strong performers
Chandigarh and Daman & Diu have achieved 100% of their government building targets. The government aims to cover 1 crore households with rooftop solar power by 2026-27, adding 30 GW of solar capacity and drastically reducing carbon emissions.
5: What are the environmental and economic impacts of the PM Surya Ghar Yojana on India’s renewable energy goals?
Answer:
The PM Surya Ghar Yojana is a game-changer for India’s renewable energy sector. Economically, the scheme is projected to:
● Save ₹75,000 crore annually in electricity costs.
● Create 17 lakh direct jobs, boosting green employment.
● Generate 1,000 billion units of clean electricity over 25 years.
Environmentally, the scheme will:
● Reduce CO2 emissions by 720 million tonnes.
● Offset emissions equivalent to planting 100 trees per installation.
Promote domestic manufacturing of solar modules, supporting the Aatmanirbhar Bharat initiative.
