PM Surya Ghar: Muft Bijli Yojana
The PM Surya Ghar: Muft Bijli Yojana, the world’s largest domestic rooftop solar initiative, is transforming India’s energy landscape with a bold vision to supply solar power to one crore households by March 2027. By March 2025, installations under the scheme are expected to exceed 10 lakh, with the numbers doubling to 20 lakh by October 2025, reaching 40 lakh by March 2026, and ultimately achieving the target of one crore by March 2027. Launched by Prime Minister Narendra Modi on 13 February 2024, this groundbreaking initiative aims to provide free electricity to households by facilitating the installation of rooftop solar panels.
- The scheme offers a subsidy of up to 40 percent to households, making renewable energy more affordable and accessible. In just nine months, 6.3 lakh installations have been completed, resulting in an impressive monthly installation rate of 70,000, ten times higher than the pre-scheme average. With a goal to benefit one crore households, the program is also expected to save the government ₹75,000 crores annually in electricity costs. This transformative initiative empowers millions to adopt clean energy, reinforcing India’s commitment to sustainable development and energy innovation.
- “In order to further sustainable development and people’s well-being, we are launching the PM Surya Ghar: Muft Bijli Yojana. This project, with an investment of over Rs. 75,000 crores, aims to light up 1 crore households by providing up to 300 units of free electricity every month.”
Key Benefits
The PM Surya Ghar: Muft Bijli Yojana offers several significant benefits to participating households:
- Free Electricity for Households: The scheme provides households with free electricity through the installation of subsidized rooftop solar panels, significantly reducing their energy costs.
- Reduced Electricity Costs for the Government: By promoting the widespread use of solar power, the scheme is expected to save the government an estimated ₹75,000 crore annually in electricity costs.
- Increased Use of Renewable Energy: The scheme encourages the adoption of renewable energy sources, contributing to a more sustainable and environmentally friendly energy mix in India.
- Reduced Carbon Emissions: The transition to solar energy under this scheme will help lower carbon emissions, supporting India’s commitment to reducing its carbon footprint.
Subsidy Support Based on Consumption
The amount of subsidy provided to households is determined by their average monthly electricity consumption, which helps identify the suitable rooftop solar plant capacity required for their needs.
Average Monthly Electricity Consumption (Units) | Recommended Solar Plant Capacity | Subsidy Amount |
0 – 150 units | 1–2 kW | ₹30,000 to ₹60,000 |
150 – 300 units | 2–3 kW | ₹60,000 to ₹78,000 |
Above 300 units | Above 3 kW | ₹78,000 (fixed subsidy cap) |
This approach ensures need-based subsidy allocation, maximizing efficiency and affordability for diverse consumer groups.
Eligibility
Impact
The PM Surya Ghar: Muft Bijli Yojana is expected to have far-reaching outcomes, both for individual households and the nation as a whole:
- Household Savings and Income Generation: Households will benefit from significant savings on their electricity bills. Additionally, they will have the opportunity to earn extra income by selling surplus power generated by their rooftop solar systems to DISCOMs. For instance, a 3-kW system can generate over 300 units per month on average, providing a reliable source of energy and potential revenue.
- Expansion of Solar Capacity: 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.
- Environmental Benefits: 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
- Job Creation: The scheme is also expected to create approximately 17 lakh 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.
Model Solar Village
- Under the “Model Solar Village” component of the scheme, the focus is on establishing one Model Solar Village per district throughout India. This initiative aims to promote solar energy adoption and empower village communities to achieve energy self-reliance. An allocation of ₹800 crore has been designated for this component, with ₹1 crore provided to each selected Model Solar Village.
- To qualify as a candidate village, it must be a revenue village with a population of over 5,000 (or 2,000 in special category states). Villages are selected through a competitive process, evaluated on their overall distributed renewable energy (RE) capacity six months after being identified by the District Level Committee (DLC).
- The village in each district with the highest RE capacity will receive a central financial assistance grant of ₹1 crore. The State/UT Renewable Energy Development Agency, under the supervision of the DLC, will oversee the implementation, ensuring these model villages successfully transition to solar energy and set a benchmark for others across the country.
