Explainer - PM Surya Ghar Muft Bijli Yojana

• Public Sector Banks (PSBs) have sanctioned over 5.79 lakh loan applications, amounting to Rs 10,907 crore under PM Surya Ghar Muft Bijli Yojana (PMSGMBY).

• The scheme has achieved a significant milestone in empowering households with clean and affordable solar energy. 

• The implementation of the scheme is supported by streamlining the credit delivery process, facilitating collateral-free affordable loans at lower interest rates and simplified financing through PSBs.

• The loans are processed through the JanSamarth Portal, integrated with the National Portal for PMSGMBY (pmsuryaghar.gov.in), ensuring an end-to-end seamless digital application process, enhanced user experience and data-driven decision making for beneficiaries.

• The Department of Financial Services in coordination with the Ministry of New and Renewable Energy, actively reviews the progress of loans under the scheme, strengthening implementation through collaboration with State-Level Bankers Committees and Lead District Managers, thereby driving faster adoption, better outreach and penetration of the scheme.

PM Surya Ghar Muft Bijli Yojana

• The PM Surya Ghar Muft Bijli Yojana was launched by Prime Minister Narendra Modi on February 15, 2024. 

• It aims to light up one crore households by installing rooftop solar equipment and providing up to 300 units of free electricity every month with a total outlay of Rs 75,021 crore. 

• This ambitious scheme empowers households to harness solar energy by offering a substantial subsidy covering up to 40 per cent of the cost of installing solar panels on their rooftops. By enabling widespread adoption of solar power, the scheme is poised to benefit one crore households across the country. 

• As of July 24, 2025, a total of around 16.04 lakh households have benefitted from rooftop solar installation in the country.

• The scheme’s easy financing options, including collateral-free loans up to Rs 2 lakh at a 6.75 per cent subsidised interest rate through 12 Public Sector Banks, have further accelerated adoption. 

• With a seamless 15-day subsidy transfer process and zero electricity bills for many beneficiaries, the scheme is not just powering homes but also empowering people. 

• Every solar installation under PMSGMBY offsets carbon emissions equal to planting 100 trees, driving India towards a cleaner, greener, and self-reliant future.

• The scheme has facilitated the installation of over 3 GW of rooftop solar capacity. It is also driving the local production of inverters and Balance of Plant (BoP) components.

Benefits of the scheme:

• Free Electricity for Households: The scheme provides households with free electricity by installing subsidised rooftop solar panels, significantly reducing their energy costs.

• Reduced Electricity Costs for the Govt: By promoting the widespread use of solar power, the scheme is expected to save the government an estimated Rs 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.

Eligibility criteria

i) The household must be an Indian citizen. 

ii) The household must own a house with a roof that is suitable for installing solar panels.

iii) The household must have a valid electricity connection.

iv) The household must not have availed any other subsidy for solar panels.

Expected outcomes of the scheme:

i) 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, an average 3-kW system can generate over 300 units per month, providing a reliable energy source and potential revenue.

ii) 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. 

iii) Environmental Benefits: Over the 25-year lifetime of these rooftop systems, it is estimated that the scheme will generate 1,000 billion units of electricity while reducing CO2 emissions by 720 million tonnes, making a substantial positive impact on the environment.

iv) 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.