The PM Surya Ghar: Muft Bijli Yojana (PMSGMBY), the world’s largest domestic rooftop solar initiative, has crossed a historic milestone with 10 lakh homes now powered by solar energy as of March 10 as per an official statement from the Ministry of New and Renewable Energy on Thursday.
Launched by Prime Minister Narendra Modi on February 13, 2024, the scheme is transforming India’s energy landscape. With 47.3 lakh applications received, the government has disbursed Rs. 4,770 crore in subsidies to 6.13 lakh beneficiaries, making solar energy more accessible to Indian households.
A key feature of the scheme is its easy financing options, including collateral-free loans up to Rs. 2 lakh at a 6.75% subsidized interest rate provided by 12 Public Sector Banks. So far, 3.10 lakh loan applications have been received, with 1.58 lakh sanctioned and 1.28 lakh disbursed, ensuring financial inclusion. The scheme boasts a swift 15-day subsidy transfer process and has enabled many households to enjoy zero electricity bills.
Significant Progress Across States
Several states have made remarkable progress in implementing the scheme. Chandigarh and Daman & Diu have achieved 100% of their rooftop solar targets for government buildings, while Rajasthan, Maharashtra, Gujarat, and Tamil Nadu have significantly contributed to the installation figures. The government aims to reach 1 crore solar-powered households by 2026-27, monitoring progress across all states to ensure timely execution.
Among the top-performing states, Gujarat leads with 3,51,273 households benefiting, accounting for 41.47% of installations. Kerala follows with 65,423 households (7.73%), while Uttar Pradesh has 73,602 households (8.69%).
Key Benefits
The PM Surya Ghar: Muft Bijli Yojana offers several advantages. Households receive free electricity through subsidized rooftop solar panels, significantly reducing their energy costs. The widespread adoption of solar power is projected to save the government Rs. 75,000 crore annually in electricity costs. Solar installations also reduce carbon emissions, contributing to India’s goal of lowering its carbon footprint. Each solar installation offsets carbon emissions equivalent to planting 100 trees, driving India towards a cleaner and self-reliant future.
Subsidy Details
Subsidies under the scheme depend on the household’s average monthly electricity consumption. For households with 0-150 units of monthly consumption, 1-2 kW solar plants are suitable, with subsidies ranging from Rs. 30,000 to Rs. 60,000. For households consuming 150-300 units, a 2-3 kW plant is appropriate, with subsidies ranging from Rs. 60,000 to Rs. 78,000. For consumption above 300 units, subsidies of ₹78,000 are provided for solar plants above 3 kW. Households can apply through the National Portal, which assists with vendor selection, system size information, and more. Subsidies are processed within 15 days after submission.
Impact and Future Goals
The scheme is expected to add 30 GW of solar capacity through residential rooftop installations by 2027, significantly boosting India’s renewable energy targets. Over the 25-year lifespan of these systems, it is estimated that they will generate 1000 billion units (BU) of electricity while reducing CO2 emissions by 720 million tonnes. Furthermore, the scheme is projected to create 17 lakh direct jobs, supporting the government’s Aatmanirbhar Bharat initiative. By mandating the use of domestically produced solar modules and cells, the scheme strengthens India’s renewable energy ecosystem.
Model Solar Villages
A unique component of the scheme is the creation of “Model Solar Villages,” with one village per district selected to demonstrate solar energy adoption and promote energy self-reliance. With Rs. 1 crore allocated to each selected village, the initiative aims to set a benchmark for solar energy use across India.
