PM Surya Ghar Muft Bijli Yojana (PMSGMBY)

The PM Surya Ghar Muft Bijli Yojana (PMSGMBY), launched by the Indian government, has crossed an important milestone as Public Sector Banks (PSBs) have sanctioned over 5.79 lakh loan applications amounting to ?10,907 crore by September 2025. This is a significant step toward achieving the scheme’s goal of providing free electricity to households across India by promoting the use of rooftop solar panels.

About PM Surya Ghar Muft Bijli Yojana

Launched on February 15, 2024, the PM Surya Ghar Muft Bijli Yojana is a government-backed initiative aimed at making solar energy accessible to households in India by providing subsidies for solar panel installation. The scheme focuses on promoting renewable energy while addressing the electricity needs of rural and urban populations.

Key Features of PMSGMBY:

1. Subsidy for Solar Panel Installation:

   • The scheme provides a 60% subsidy on solar units for systems with a capacity of up to 2 kW.

   • For systems between 2 kW to 3 kW, a 40% subsidy is provided.

   • The maximum system capacity eligible for subsidy under the scheme is 3 kW.

2. Development of Model Solar Villages:

   • One of the key components of the scheme is the development of Model Solar Villages in each district. These villages will showcase the effectiveness of solar energy and encourage other areas to adopt it.

3. Incentives to Local Bodies:

   • Local bodies such as Urban Local Bodies (ULBs) and Panchayat Raj Institutions (PRIs) at the Gram Panchayat level will receive ?1,000 per rooftop solar installation within their jurisdiction as an incentive.

4. Implementation Agencies:

   • The scheme is implemented by a National Programme Implementation Agency (NPIA) at the national level, and by State Implementation Agencies (SIAs) at the state level.

   • DISCOMs (Distribution Companies) are designated as SIAs responsible for facilitating various aspects like net metering, installation inspection, and commissioning of solar systems. DISCOMs will also receive incentives based on their performance in expanding rooftop solar installations beyond a baseline level.

Eligibility Criteria:

To avail of the benefits of the PM Surya Ghar Muft Bijli Yojana, households must meet the following criteria:

1. Indian Citizen: Only Indian citizens are eligible to apply.

2. Home Ownership: The household must own a house with a roof suitable for solar panel installation.

3. Valid Electricity Connection: The household must have an active electricity connection.

4. No Prior Subsidy: The household should not have received any other government subsidy for installing solar panels.

Conclusion:

The PM Surya Ghar Muft Bijli Yojana is not only aimed at providing free electricity but also at promoting clean, renewable energy across India. The scheme is expected to contribute significantly to India’s goals of energy independence and climate action, reducing the country’s dependency on fossil fuels while providing affordable electricity to rural and urban populations.