Why in news?
India’s PM Surya Ghar – Muft Bijli Yojana, launched on 13 February 2024, reached a milestone of 10 lakh rooftop solar installations by March 2025. The scheme aims to provide up to 300 units of free electricity per month to one crore households by subsidising rooftop solar systems.
Background
The scheme, announced by Prime Minister Narendra Modi, encourages residential households to install rooftop solar panels. Beneficiaries receive central financial assistance (CFA) for systems up to 3 kilowatts (kW) capacity and can sell surplus electricity back to their local distribution companies. The initiative supports India’s commitments to renewable energy, carbon reduction and self‑reliance (Aatmanirbhar Bharat).
Key features
- Free electricity: Households can generate their own power and receive up to 300 units of free electricity each month, substantially reducing electricity bills.
- Subsidy structure: Depending on average monthly consumption, households receive CFA ranging from ₹30,000 to ₹78,000 for systems between 1 kW and above 3 kW.
- Easy financing: Collateral‑free loans up to ₹2 lakh are available at subsidised interest rates (~6.75 %), facilitating uptake among middle‑ and lower‑income households.
- Quick subsidy transfer: Once a system is installed and connected, the subsidy is typically credited within 15 days via the national portal.
- Environmental benefits: Each installation reduces carbon emissions equivalent to planting 100 trees. The scheme aims to add 30 GW of rooftop solar capacity, save the government an estimated ₹75,000 crore in power costs, and cut CO₂ emissions by 720 million tonnes over the systems’ lifetime.
- Job creation: An estimated 17 lakh jobs will be generated in manufacturing, installation, maintenance and other services.
- Support for domestic manufacturing: The programme mandates the use of India‑made solar modules and cells, boosting local industries and aligning with the Make in India initiative.
Impact and progress
- High demand: By March 2025 the scheme had received 47.3 lakh applications and disbursed ₹4,770 crore in subsidies to over 6 lakh beneficiaries.
- State performance: Chandigarh and Daman & Diu achieved 100 % rooftop coverage on government buildings, while Rajasthan, Maharashtra, Gujarat and Tamil Nadu rank among the top performers.
- Long‑term goals: The government plans to install rooftop solar on one crore households by 2026–27, adding 30 GW of capacity and creating a network of model solar villages.
Conclusion
PM Surya Ghar – Muft Bijli Yojana is transforming India’s energy landscape by empowering households to become power producers. By combining financial incentives, easy financing and environmental goals, the scheme advances energy equity and supports India’s shift toward a low‑carbon future.
Source: The Hindu
