changeadminIndia’s Rooftop Solar Initiative has achieved a significant milestone by completing 1 million installations in the country. Minister of New and Renewable Energy Mr Pralhad Joshi made the announcement on social media.
In February 2024, Indian Prime Minister Narendra Modi had launched this ambitious scheme, PM Surya Ghar: Muft Bijli Yojana (PMSGMBY), touted as the world’s largest domestic rooftop solar initiative.
The scheme aims to generate electricity through rooftop solar systems in 10 million residential households by March 2027, reducing dependence on conventional power sources and enabling citizens to become energy producers.
The scheme enables every household to contribute to climate change mitigation by reducing carbon emissions equivalent to planting 100 trees.
Empowering Households with Subsidies and Incentives
The scheme, implemented by India’s Ministry of New and Renewable Energy (MNRE) has received 4.73 million applications and 0.61 million beneficiaries have been provided subsidies, amounting to Rs 4,770 crore.
With a fully automated application, vendor selection and subsidy redemption process through the online portal, subsidies get credited to applicants’ bank accounts within 15 days.
A key feature of the Rooftop Solar Initiative is the provision of collateral-free loans through 12 Public Sector Banks (PSBs) at a subsidized interest rate of 6.75% for loans up to Rs. 2 lakhs, making rooftop solar installations more accessible to the masses.
With the easy and fully automated loan facility, a 3 KW rooftop solar system could be installed with an investment as low as Rs. 15,000, giving returns up to Rs. 15 lakh in 25 years.
As per the release, so far, 3.10 lakh loan applications have been received, with 1.58 lakh loans sanctioned and 1.28 lakh disbursed, ensuring wider accessibility for potential beneficiaries. Beneficiaries receive subsidies up to Rs 78000 for up to 3KW rooftop solar systems, significantly reducing installation costs.
Remarkable Progress Across Several States
India’s Rooftop Solar Initiative 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 10 million households by 2026-27.
Driving India’s Rooftop Solar Sector
To facilitate easy financing, Minister of New and Renewable Energy Mr Pralhad Joshi recently held a meeting with top bankers at National Workshop on Mobilizing Finance for Renewable Energy in Mumbai, urging them to ensure the hassle-free disbursement of loans under the scheme.
The discussions led to several key takeaways to unlock access to finance, including the need for lower-cost financing, innovative financing models, improved access to global climate funds, and enhanced risk-sharing mechanisms for new technologies.
The meeting also underscored the importance of strengthening public-private partnerships and expanding green financial instruments to support India’s clean energy transition.
The Indian government is also extending the rooftop solar initiative to public infrastructure, promoting the installation of solar systems on its buildings. This effort not only reduces operational energy costs but also serves as a model for the commercial and industrial sectors, encouraging a broader adoption of solar power across the country.
This is also aligned with the government’s endeavour for self reliance (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, India’s Rooftop Solar Initiative 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.
MNRE has been working towards faster rollout, building infrastructure for rapid deployment, ensuring efficient subsidy disbursement, and conducting extensive awareness campaigns. The scheme continues to receive overwhelming support from the public and the Government, marking a transformative step toward a cleaner, greener, and energy-secure future for India.
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