The PM Surya Ghar: Muft Bijli Yojana (PMSGMBY) marks the first anniversary of its launch on Thursday, it stands as a testament to India’s commitment to renewable energy and household empowerment. With an aim to power one crore households by March 2027, the scheme has already benefitted 8.46 lakh households.
Over the past year, the pace of solar adoption has surged dramatically, with monthly installation rates increasing tenfold to nearly 70,000 households per month. A key factor behind this growth is the attractive subsidy structure, which covers up to 40% of the installation cost. So far, ₹4,308.66 crore has been disbursed as Central Financial Assistance (CFA), benefiting 5.54 lakh residential consumers, with an average subsidy of ₹77,800 per household. As a result, nearly 45% of beneficiaries are now receiving zero electricity bills, depending on their power generation and consumption.
The impact of the scheme extends far beyond individual households. By promoting widespread solar adoption, the initiative is expected to save the government an estimated ₹75,000 crore annually in electricity costs. It also plays a crucial role in India’s clean energy ambitions by significantly reducing carbon emissions. Over the 25-year lifespan of these rooftop solar systems, an estimated 1,000 billion units (BUs) of electricity will be generated, leading to a reduction of 720 million tonnes of CO2 emissions.
Financial accessibility has been a key focus of the programme. Households can easily apply for subsidies through the National Portal, which also provides assistance in selecting vendors, estimating benefits, and understanding system requirements. The process is streamlined, with CFA disbursals typically completed within 15 days after a redemption request. Additionally, the scheme offers collateral-free, low-interest loans at approximately 7% for residential rooftop solar installations up to 3 kW, making solar energy accessible to a larger population.
Beyond financial and environmental gains, the initiative is generating substantial employment opportunities. With an estimated 17 lakh direct jobs created across manufacturing, logistics, supply chain, sales, installation, and maintenance sectors, the scheme is driving economic growth alongside energy transformation.
A distinctive feature of the programme is the introduction of the “Model Solar Village” component, aimed at promoting solar adoption in rural India. Under this initiative, one village per district will be selected as a model solar-powered community, demonstrating the feasibility of energy self-reliance.
With a total allocation of ₹800 crore, each selected village will receive ₹1 crore in central financial assistance. To qualify, villages must meet population criteria and compete on their renewable energy capacity, ensuring that those with the highest adoption rates receive funding.
