The PM Surya Ghar: Muft Bijli Yojana (PMSGMBY) marks one year of implementation, driving India’s transition to renewable energy. Launched on 13 February 2024, the initiative aims to provide subsidised rooftop solar installations, targeting one crore (10 million) households by March 2027.
As of 27 January 2025, 8.46 lakh households have installed rooftop solar systems under the scheme. The installation rate has increased tenfold, with around 70,000 installations per month. The government has disbursed ₹4,308.66 crore in Central Financial Assistance (CFA) to 5.54 lakh residential consumers, with an average subsidy of ₹77,800 per household. Around 45% of the beneficiaries now receive zero electricity bills, depending on their consumption and solar power generation.
Key Benefits of the Scheme
- Free Electricity for Households: Subsidised rooftop solar panels reduce energy costs.
- Reduced Government Electricity Costs: Estimated annual savings of ₹75,000 crore.
- Increased Renewable Energy Adoption: Strengthens India’s sustainable energy mix.
- Carbon Emissions Reduction: Expected to cut CO₂ emissions by 720 million tonnes over 25 years.
Subsidy Structure
The subsidy varies based on electricity consumption and solar system capacity:
| Monthly Electricity Use (units) | Rooftop Solar Capacity | Subsidy Amount |
|---|---|---|
| 0-150 | 1-2 kW | ₹30,000 – ₹60,000 |
| 150-300 | 2-3 kW | ₹60,000 – ₹78,000 |
| > 300 | Above 3 kW | ₹78,000 |
Application Process
Households can apply for subsidies through the National Portal, where they can also choose vendors, check system size recommendations, and access a benefits calculator. If all credentials are correctly submitted, the CFA is typically processed within 15 days after the consumer’s redemption request.
Additionally, collateral-free loans at approximately 7% interest are available for residential rooftop solar systems up to 3 kW.
Impact and Future Goals
- Household Savings and Income Generation: Households can reduce electricity bills and sell surplus solar energy to DISCOMs. A 3-kW system generates over 300 units per month on average.
- Solar Capacity Expansion: Expected to add 30 GW of residential rooftop solar capacity.
- Environmental Benefits: Projected to generate 1,000 billion units of electricity over 25 years.
- Employment Generation: Expected to create 17 lakh direct jobs in manufacturing, logistics, installation, and maintenance.
Model Solar Village Initiative
Under this scheme, each district will have one Model Solar Village to promote solar adoption. An allocation of ₹800 crore has been made, with ₹1 crore provided to each selected village. Eligible villages must have a minimum population of 5,000 (or 2,000 in special category states).
The village with the highest renewable energy capacity in each district will receive the financial grant. The State/UT Renewable Energy Development Agency will oversee implementation under the supervision of the District Level Committee.
