NEW DELHI, MARCH 13, 2-025: PM Surya Ghar: Muft Bijli Yojana (PMSGMBY), the world’s largest domestic rooftop solar initiative, has achieved a historic milestone with 10 lakh homes now solar-powered as of March 10, 2025.
Launched by Prime Minister Narendra Modi on 13th February 2024, this transformative scheme is rapidly reshaping India’s energy landscape. With 47.3 lakh applications received, the initiative has already disbursed ₹4,770 crore in subsidies to 6.13 lakh beneficiaries, making solar energy more accessible than ever. The scheme’s easy financing options, including collateral-free loans up to ₹2 lakh at a 6.75% subsidized interest rate through 12 Public Sector Banks, have further accelerated adoption. So far, 3.10 lakh loan applications have been received, with 1.58 lakh sanctioned and 1.28 lakh disbursed, ensuring financial inclusion for all. With a seamless 15-day subsidy transfer process and zero electricity bills for many beneficiaries, the scheme is not just powering homes but also empowering people. Every solar installation under PMSGMBY offsets carbon emissions equal to planting 100 trees, driving India towards a cleaner, greener, and self-reliant future.
Remarkable Progress Across Several States
The scheme has seen remarkable progress across several states. Notably, Chandigarh and Daman & Diu have achieved 100% of their government building rooftop solar targets, leading the nation in clean energy adoption. States like Rajasthan, Maharashtra, Gujarat, and Tamil Nadu are also performing exceptionally well, contributing significantly to the overall installation figures. The Government is actively monitoring the progress across all states to ensure the smooth and timely execution of the scheme, with the goal of reaching 1 crore households by 2026-27.
Top 5 states with the highest number of households benefiting under the PM Surya Ghar: Muft Bijli Yojana.
Key Benefits
The PM Surya Ghar: Muft Bijli Yojana offers several significant benefits to participating households:
- Free Electricity for Households:The scheme provides households with free electricity through the installation of subsidized rooftop solar panels, significantly reducing their energy costs.
- Reduced Electricity Costs for the Government:By promoting the widespread use of solar power, the scheme is expected to save the government an estimated ₹75,000 crore annually in electricity costs.
- Increased Use of Renewable Energy:The scheme encourages the adoption of renewable energy sources, contributing to a more sustainable and environmentally friendly energy mix in India.
- Reduced Carbon Emissions:The transition to solar energy under this scheme will help lower carbon emissions, supporting India’s commitment to reducing its carbon footprint.
Subsidy Details
The subsidy provided under the scheme varies based on the household’s average monthly electricity consumption and the corresponding suitable rooftop solar plant capacity:
| Average Monthly Electricity Consumption (units) | Suitable Rooftop Solar Plant Capacity | Subsidy Support | |
|
0-150 |
1-2 kW | ₹ 30,000/- to ₹ 60,000/- | |
| 150-300 | 2-3 kW | ₹ 60,000/- to ₹ 78,000/- | |
| > 300 | Above 3 kW | ₹ 78,000/- |
Subsidy Application and Vendor Selection: Households can apply for the subsidy through the National Portal, where they can also select a suitable vendor for installing rooftop solar. The National Portal will assist in decision-making by providing information on appropriate system sizes, a benefits calculator, vendor ratings, and other relevant details. With all credentials are entered correctly on the National Portal, the average time taken in processing the CFA is around 15 days after redemption request made by the consumer.
Collateral-Free Loans: Households will have access to collateral-free, low-interest loans at around 7% interest for the installation of residential rooftop solar (RTS) systems up to 3 kW.
Eligibility
The PM Surya Ghar: Muft Bijli Yojana is expected to have far-reaching outcomes, both for individual households and the nation as a whole:
- Household Savings and Income Generation:Households will benefit from significant savings on their electricity bills. Additionally, they will have the opportunity to earn extra income by selling surplus power generated by their rooftop solar systems to DISCOMs. For instance, a 3-kW system can generate over 300 units per month on average, providing a reliable source of energy and potential revenue.
- Expansion of Solar Capacity:The scheme is projected to add 30 GW of solar capacity through rooftop installations in the residential sector, significantly contributing to India’s renewable energy goals.
- Environmental Benefits:Over the 25-year lifetime of these rooftop systems, it is estimated that the scheme will generate 1000 BUs of electricity while reducing CO2 emissions by 720 million tonnes, making a substantial positive impact on the environment.
- Job Creation:The scheme is also expected to create approximately 17 lakh direct jobs across various sectors, including manufacturing, logistics, supply chain, sales, installation, operations and maintenance (O&M), and other services, thereby boosting employment and economic growth in the country.
Under the leadership of Prime Minister Shri Narendra Modi, aligned with the Aatmanirbhar Bharat initiative, the PM Surya Ghar: Muft Bijli Yojana supports domestic manufacturing by mandating the use of solar modules and cells produced in India. As of 10th March 2025, the scheme has facilitated the installation of over 3 GW of rooftop solar capacity, with an additional 27 GW targeted by March 2027. This initiative is also driving the local production of inverters and Balance of Plant (BoP) components, further strengthening India’s renewable energy ecosystem and enhancing the Make in India vision.
About the Author
