Prime Minister Narendra Modi launched the PM Surya Ghar: Muft Bijli Yojana on February 15, 2024, aiming to transform India’s energy landscape with the world’s largest domestic rooftop solar initiative. This ambitious program seeks to provide solar power to one crore households by March 2027. By March 2025, installations under the scheme are expected to exceed 10 lakh, doubling to 20 lakh by October 2025, reaching 40 lakh by March 2026, and achieving the final target within the next year.
The initiative focuses on offering free electricity to households by subsidizing rooftop solar panel installations. Households receive up to 40 percent financial support, making solar energy more accessible and affordable. In just nine months, 6.3 lakh installations have been completed, achieving a monthly installation rate of 70,000, which is ten times higher than before the scheme began. The program aims to save the government ₹75,000 crore annually in electricity costs while promoting clean energy adoption.
Households can apply for the subsidy through the National Portal, which provides information on system sizes, benefits, vendor ratings, and other details. The scheme also offers collateral-free loans with low-interest rates for installations of up to 3 kW. Subsidy amounts vary depending on the household’s electricity consumption, ranging from ₹30,000 for smaller systems to ₹78,000 for larger setups. A 3-kW system can generate over 300 units per month, potentially saving on bills and enabling households to sell surplus electricity to DISCOMs, creating an additional source of income.
The scheme is expected to add 30 GW of solar capacity to the residential sector, generate 1000 billion units of electricity over 25 years, and reduce carbon dioxide emissions by 720 million tonnes. It also aims to create approximately 17 lakh direct jobs in manufacturing, logistics, sales, installation, and operations, boosting employment and economic growth.
Under the Model Solar Village component, one village per district will be developed as a solar-powered model, with ₹800 crore allocated for this initiative. Villages with populations above 5,000, or 2,000 in special category states, can qualify through a competitive process. The village with the highest renewable energy capacity within six months of selection will receive a central financial assistance grant of ₹1 crore. State Renewable Energy Development Agencies will oversee implementation, promoting energy self-reliance in rural areas.
By combining substantial subsidies, accessible financing, and job creation, the PM Surya Ghar: Muft Bijli Yojana is reshaping India’s energy future. With its focus on renewable energy and sustainability, the initiative represents a significant step toward reducing carbon emissions, lowering electricity costs, and achieving energy independence, making it a cornerstone of India’s clean energy ambitions.
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