PM Surya Ghar: Muft Bijli Yojana (PMSGMBY) will mark its first anniversary, celebrating a year of empowering households with affordable solar energy and accelerating India’s transition to a sustainable future.
Launched by Prime Minister Narendra Modi on February 13, 2024, this groundbreaking initiative aims to provide free electricity to households by facilitating the installation of rooftop solar panels.
The PMSGMBY, the world’s largest domestic rooftop solar initiative, is reshaping India’s energy landscape with a bold vision to supply solar power to one crore (10 million) households by March 2027.
As of the end of January 2025, the scheme has benefitted 8,46,000 households through rooftop solar installations. The rapid adoption of solar energy is evident in the tenfold increase in monthly installation rates, which now stand at around 70,000 installations per month, significantly surpassing pre-scheme levels.
The scheme offers subsidies to households for installing rooftop solar panels, making renewable energy more affordable and accessible.
So far, Rs 4,308.66 crore has been disbursed as Central Financial Assistance (CFA) to 5,54,000 residential consumers, with an average subsidy of Rs 77,800 per household. Additionally, an estimated 45% of the beneficiaries are now receiving zero electricity bills, depending on their solar power generation and consumption patterns.
Gujarat with 3,51,273 households (41.47%), Maharashtra with 1,92,936 households (22.79%), and Uttar Pradesh with 73,602 households (8.69%) are the top 3 states with the highest number of households benefiting under the PM Surya Ghar: Muft Bijli Yojana.
Households can apply for the subsidy through the National Portal, where they can also select a suitable vendor for installing rooftop solar. The National Portal will assist in decision-making by providing information on appropriate system sizes, a benefits calculator, vendor ratings, and other relevant details.
Once the credentials and details are validated on the National Portal, the average time taken to process the CFA is around 15 days after the redemption request made by the consumer.
Households will also have access to collateral-free, low-interest loans at around 7% interest for the installation of residential rooftop solar systems up to 3 kW.
Wrapping Up
The scheme is projected to add 30 GW of solar capacity through rooftop installations in the residential sector, significantly contributing to India’s renewable energy goals.
Over the 25-year lifetime of these rooftop systems, it is estimated that the scheme will generate 1000 BUs of electricity while reducing CO2 emissions by 720 million tonnes, making a substantial positive impact on the environment.
The scheme is also expected to create approximately 1.7 million direct jobs across various sectors, including manufacturing, logistics, supply chain, sales, installation, operations and maintenance (O&M), and other services, thereby boosting employment and economic growth in the country.
PM Surya Ghar: Muft Bijli Yojana is set to significantly reshape India’s energy landscape by empowering millions of households with solar power.
By March 2025, installations are expected to exceed 1 million, doubling to 2 million by October 2025, reaching 4 million by March 2026, and ultimately achieving the ambitious 10 million target by March 2027.
This transformative initiative is set to save the government Rs 75,000 crores (~US$ 8.8 bn) annually in electricity costs, reinforcing India’s leadership in clean energy innovation.
Through substantial subsidies, accessible financing options, and a focus on renewable energy, the initiative will not only provide free electricity to households but also contribute to significant savings for the government, reduced carbon emissions, and job creation.
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