PM Surya Ghar Muft Bijli Yojana

Launched on February 15, 2024, the Pradhan Mantri Surya Ghar Muft Bijli Yojana has been making significant strides in providing free electricity to households across India. As of July 14, 2025, the scheme has already benefited 15.45 lakh households, according to the Union Ministry of New and Renewable Energy (MNRE).

Objectives of the Scheme:

• Free Electricity: The scheme aims to provide free electricity to one crore households across India.

• Solar Panel Subsidy: Households will receive a subsidy to install solar panels on their roofs, thereby promoting the use of renewable energy and reducing dependency on conventional electricity sources.

Subsidy Details:

• Up to 2 kW Capacity: 60% subsidy on the solar unit cost.

• Between 2 kW and 3 kW Capacity: 40% subsidy for the additional cost.

• Capacity Cap: The subsidy is capped at a 3 kW system.

  For example:

  • Rs 30,000 subsidy for a 1 kW system.

  • Rs 60,000 subsidy for a 2 kW system.

  • Rs 78,000 subsidy for a 3 kW system or higher.

• Special States: An additional 10% subsidy per kW for special states.

Benefits of the Scheme:

• Free Electricity: Households can receive up to 300 units of free electricity per month.

• Annual Savings: Families could save up to Rs 18,000 annually on electricity bills.

• Government Savings: The scheme is expected to save the government Rs 75,000 crore per year in electricity costs.

• Environmental Impact: It encourages the use of renewable energy, helping to reduce carbon emissions.

Scheme Outlay and Duration:

• Financial Outlay: Rs 75,021 crore has been allocated for the scheme.

• Implementation Timeline: The scheme is set to be implemented until FY 2026-27.

Eligibility Criteria:

1. Indian Citizenship: Only Indian citizens are eligible.

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

3. Valid Electricity Connection: The household must have a valid electricity connection.

4. No Previous Solar Subsidy: The household should not have availed any other subsidy for solar panels.

Implementation Details:

• National Program Implementation Agency (NPIA): The scheme is coordinated at the national level.

• State Implementation Agencies (SIAs): State-level agencies (primarily DISCOMs) are responsible for implementation, including net meter availability, inspections, and installations.

• Incentives to DISCOMs: DISCOMs will receive incentives based on their performance in installing additional grid-connected rooftop solar capacity beyond a baseline level. The total financial outlay for this component is Rs 4,950 crore.

Special Components of the Scheme:

1. Model Solar Villages: The scheme includes the development of Model Solar Villages in each district. An amount of Rs 800 crore has been allocated for this purpose, with Rs 1 crore financial assistance per model village.

2. Incentives to Local Bodies: Urban Local Bodies (ULBs) and Panchayat Raj Institutions (PRIs) will receive an incentive of Rs 1,000 per rooftop solar installation within their jurisdictions.

Impact of the Scheme:

1. Empowering Rural India: With special focus on rural and underserved areas, the scheme promises to provide a significant boost to rural electrification and sustainable development.

2. Job Creation: As solar panel installations increase, the scheme is expected to create new employment opportunities in the renewable energy sector.

3. Sustainability: The emphasis on solar energy will help reduce India's reliance on fossil fuels, contributing to the global fight against climate change.

Conclusion:

The PM Surya Ghar Muft Bijli Yojana is a game-changer for energy access, environmental sustainability, and economic savings in India. With its focus on solar energy and affordable electricity, it has the potential to make a significant impact on the lives of millions of households, particularly in rural and underserved areas.