changeadminThe PM Surya Ghar Muft Bijli Yojana (PMSGMBY) scheme has achieved a significant milestone in empowering households with solar energy and also boosting India’s green finance.
As of September 2025, India’s public sector banks have sanctioned over 5,79,000 loan applications, amounting to ₹10,907 crore, thereby augmenting financial support to beneficiaries for installing rooftop solar systems.
The PM Surya Ghar Muft Bijli Yojana scheme, launched in February 2024, has initiated a rooftop revolution by making solar energy accessible to Indian households, promoting decentralised clean energy generation across the country. The scheme offers a subsidy of up to 40 per cent to families, making renewable energy more affordable and accessible.
The implementation of the rooftop solar scheme is actively supported by streamlining the credit delivery process, facilitating collateral-free, affordable loans at lower interest rates and simplified financing through public sector banks.
The sanctioned loan amount for rooftop solar installations has grown by almost 2000% in the last year and by about 200% in the previous six months.
Source: Jan Samarth Portal
The loans are processed through the JanSamarth Portal, which is integrated with the portal for PM Surya Ghar Muft Bijli Yojana. This integration ensures a seamless end-to-end digital application process, an enhanced user experience, and data-driven decision-making for beneficiaries.
The model loan scheme offers key benefits, including loans of up to ₹200,000 at competitive interest rates, without collateral, a longer tenor for repayment in line with electricity cost savings, a 6-month moratorium period from disbursement, a lower margin contribution by the applicant, and a digital sanction process based on self-declaration.
With active participation from public sector banks, several enhancements have been introduced to ease access to loans and expand the scheme’s reach. Notable improvements in the loan scheme, such as the inclusion of co-applicants to broaden eligibility, removing capacity-based caps, and simplifying documentary requirements, have been incorporated based on user feedback.
Rooftop solar loans are an established instrument of green finance, enabling individuals to invest in sustainable energy solutions while contributing to climate action.
The Department of Financial Services, in coordination with the Ministry of New and Renewable Energy, actively reviews the progress of loans under the scheme, strengthening implementation through collaboration with State Level Bankers Committees and Lead District Managers, thereby driving faster adoption, better outreach and penetration of the scheme.
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