PM Surya Ghar Muft Bijli Yojana

• As of September, 2025, over 5 Lakh Loan Applications amounting to ₹10,907 crore have been sanctioned by Public Sector Banks (PSBs) under PM Surya Ghar Muft Bijli Yojana.

About PM Surya Ghar Muft Bijli Yojana

• PM Surya Ghar Muft Bijli Yojana, launched in 2024, is a Central Sector Scheme.
• Recognised as the world’s largest domestic rooftop solar (RTS) scheme.
• Nodal Ministry: Ministry of New and Renewable Energy.
• Tenure: Implemented from FY 2023–24 to FY 2026–27.
• Objective: Designed to scale up rooftop solar in households and support India’s clean energy goals.
• Target: Rooftop solar installation in 1 crore residential households by 2026–27.
• Free Power: Eligible homes receive up to 300 units of free electricity per month.
• Eligibility: The household:
  • Must be an Indian citizen.
  • Must own a house with a suitable roof.
  • Must have a valid electricity connection.
  • Should not have availed of any prior rooftop solar subsidy.
• Implementation: Managed by National Programme Implementation Agency at the national level.
  • At the State level, executed by DISCOMs or State Power/Energy Departments serving as State Implementation Agencies (SIAs).
  • DISCOMs will ensure the availability of net meters, conduct inspections, register vendors, and integrate with government buildings.

Central Financial Assistance (CFA)

• CFA Rates: 60% subsidy for up to 2 kW; 40% for 2–3 kW; capped at 3 kW.
• Loan Facility: Collateral-free loans of up to ₹2 lakh at approx. 7% interest (for 3 kW systems).

Models under PMSGMBY

• Utility-Led Aggregation (ULA): DISCOMs or state agencies oversee installations using aggregated tenders for multiple homes.
• Renewable Energy Service Company (RESCO): A third party owns and maintains the system, while users pay only for the electricity they consume.

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Additional Components

• Model Solar Villages: One per district to promote rooftop solar in rural areas.
• ULB & PRI Incentives: Urban and rural local bodies get incentives to promote RTS installations.
• RESCO Support: A payment security mechanism is included for RESCO-based models.
• Innovation Fund: A fund created to support innovative rooftop solar projects.
• Public Awareness: A national campaign was launched to raise awareness and increase registrations.

Significance of PMSGMBY

• Solar Expansion: Increases rooftop solar capacity across India.
• Bill Savings: Reduces electricity bills through household solar generation.
• Income Option: Households can earn by selling surplus power to DISCOMs via net metering.
• Green Impact: Reduces CO₂ emissions and promotes clean energy.
• Job Creation: Estimated 17 lakh jobs in solar manufacturing, installation, and services.
• Power Generation: Adds 30 GW capacity, generating 1,000 BU power over 25 years.