Overview
PM Surya Ghar: Muft Bijli Yojana is a flagship rooftop solar scheme approved by the Union Cabinet on 29 February 2024 with a total outlay of ₹75,021 crore to be implemented till FY 2026-27. The scheme aims to install rooftop solar (RTS) systems on 1 crore (10 million) households across India, providing each household up to 300 units of free electricity per month. It is implemented by the Ministry of New and Renewable Energy (MNRE) and is a cornerstone of India’s energy transition and decentralised solar power strategy.
As of December 2025, over 20.85 lakh (2.08 million) rooftop solar systems have been installed under the scheme, benefiting 26.14 lakh households with a total Central Financial Assistance (CFA) disbursement of ₹14,771.82 crore. The scheme crossed the 10 lakh installations milestone on 10 March 2025 and is on track to achieve its target of 1 crore households by March 2027.
| Parameter | Detail |
|---|---|
| Approved | 29 February 2024 |
| Total outlay | ₹75,021 crore |
| Target | 1 crore households by FY 2026-27 |
| Free electricity | Up to 300 units/month |
| CFA disbursed (Dec 2025) | ₹14,771.82 crore |
| Installations (Dec 2025) | 20,85,514 systems |
| Households benefited (Dec 2025) | 26,14,446 |
| Portal | pmsuryaghar.gov.in |
| Nodal Ministry | Ministry of New and Renewable Energy (MNRE) |
Subsidy Structure
The scheme provides a tiered Central Financial Assistance (subsidy) based on system capacity:
| System Capacity | Subsidy Rate | Subsidy Amount |
|---|---|---|
| Up to 1 kW | 60% of system cost | ~₹30,000 |
| Up to 2 kW | 60% of system cost | ~₹60,000 |
| 2 kW to 3 kW | 60% for first 2 kW + 40% for remaining | ~₹78,000 |
| Above 3 kW | Capped at 3 kW subsidy | ₹78,000 (maximum) |
Additional Financial Support
- Collateral-free loans at low interest (~7%) for RTS systems up to 3 kW capacity
- State governments can provide additional top-up subsidies (Delhi approved state subsidy in May 2025)
- Incentives for Urban Local Bodies (ULBs) and Panchayati Raj Institutions (PRIs) that promote RTS installations in their areas
Application Process
- Register on the National Portal (pmsuryaghar.gov.in) with electricity consumer number
- Select state and electricity distribution company (DISCOM)
- Use the Benefits Calculator to estimate savings and optimal system size
- Choose a registered vendor from the portal’s rated vendor list
- Get installation completed and inspected
- Subsidy is credited directly to the beneficiary’s bank account (DBT) after DISCOM verification
Key Features
Model Solar Village Programme
- One Model Solar Village to be established in each district to demonstrate benefits and drive rural adoption
- Village-level awareness campaigns and technical support provided
National Portal Features
- System Size Recommender — suggests optimal capacity based on electricity consumption
- Benefits Calculator — estimates monthly savings and payback period
- Vendor Rating System — rates installers on quality, price, and service
- Real-time Tracking — applicants can monitor installation and subsidy status online
State-wise Performance (as of December 2025)
| Rank | State | Systems Installed | CFA Released (₹ crore) | Households Benefited |
|---|---|---|---|---|
| 1 | Gujarat | 5,15,052 | 3,845.60 | 7,41,819 |
| 2 | Maharashtra | — | — | — |
| 3 | Rajasthan | — | — | — |
Gujarat has emerged as the leading state, accounting for nearly a quarter of all installations nationwide.
Latest Developments
- February 2026: Over 20.85 lakh RTS systems installed as of December 2025; ₹14,771.82 crore disbursed (PV Magazine India report)
- Late 2025-Early 2026: Total installations crossed 25 lakh households nationwide
- May 2025: Delhi government approved state-level subsidy as top-up under the scheme
- March 2025: Scheme crossed 10 lakh installations milestone — on track for 1 crore by 2027
- 29 February 2024: Union Cabinet approved PM Surya Ghar: Muft Bijli Yojana with ₹75,021 crore outlay
Prelims Importance
- Approved on 29 February 2024 with an outlay of ₹75,021 crore
- Target: 1 crore households by FY 2026-27
- Free electricity: up to 300 units per month per household
- Subsidy: 60% for up to 2 kW, 40% additional for 2-3 kW; maximum ₹78,000
- Portal: pmsuryaghar.gov.in
- Collateral-free loans at ~7% interest for systems up to 3 kW
- Nodal Ministry: Ministry of New and Renewable Energy (MNRE)
- 20.85 lakh systems installed as of December 2025
- Gujarat is the leading state (5.15 lakh systems, ₹3,845 crore CFA)
- Model Solar Village — one per district for demonstration and rural adoption
- Linked to India’s target of 500 GW non-fossil fuel capacity by 2030
Mains & Interview Importance
GS Paper 3 — Energy, Infrastructure, Science & Technology
- Analyse the potential of rooftop solar in India’s energy transition — can decentralised generation complement utility-scale solar?
- Evaluate the PM Surya Ghar scheme’s subsidy model — is 60% CFA fiscally sustainable at 1 crore household scale?
- Discuss challenges: roof ownership issues in multi-storey buildings, DISCOM resistance to net metering, grid stability concerns
GS Paper 3 — Economy and Development
- How does rooftop solar reduce household energy expenditure and contribute to poverty alleviation?
- Discuss the employment generation potential of rooftop solar installation, maintenance, and manufacturing supply chains
GS Paper 2 — Governance
- Evaluate the role of digital governance (national portal, vendor rating, DBT subsidy) in scheme implementation efficiency
- Centre-State coordination challenges — some states delayed net metering regulations despite central mandate
Interview / Essay Angles
- “Free electricity is not free — someone pays. Is PM Surya Ghar a subsidy burden or an investment in energy independence?”
- How can India balance its 1 crore rooftop solar target with manufacturing self-reliance (most panels imported from China)?
- Compare India’s rooftop solar push with Germany’s Energiewende and Australia’s residential solar success
Sources: MNRE, PIB, PV Magazine India, PM Surya Ghar Portal