PM Surya Ghar Muft Bijli Yojana Hits 8 Lakh Milestone within a Year

New Delhi: As India’s ambitious rooftop solar initiative, PM Surya Ghar: Muft Bijli Yojana, nears its first anniversary, the program is already showcasing remarkable achievements. By January 31, 2025, nearly 8.65 lakh households have benefited from the scheme, reinforcing India’s commitment to renewable energy adoption.

This initiative, launched by Prime Minister Narendra Modi on 13 February 2024, is not only reducing electricity costs for households but also propelling the nation towards self-reliance in energy production.

A Year of Progress and Expansion

The government’s unwavering support for the initiative is evident in the increased financial allocations. In Budget 2024-25, the program was initially allocated Rs 6,250 crore, which was later revised to Rs 11,100 crore. Recognizing the scheme’s growing impact, the government further increased the allocation to Rs 20,000 crore in Budget 2025-26.

Additionally, the Sovereign Green Fund has played a crucial role in financing the scheme. The fund contributed Rs 707.46 crore in the revised FY24-25 budget, and the government has earmarked Rs 1,000 crore from it for FY25-26, ensuring sustained financial support for the program’s expansion.

Growing Demand and Industry Response

The rapid adoption of the PM Surya Ghar initiative has significantly increased the demand for solar panels, particularly those manufactured domestically.

Shreya Mishra, Co-Founder of SolarSquare, highlighted this in her post-budget remarks, stating, “Domestic solar cell manufacturing will be at the heart of India’s energy independence vision. The Finance Minister’s announcement to support cell manufacturing in this budget is a highly welcome step. Currently, India’s PM Suryaghar scheme mandates the use of solar panels made with domestically manufactured cells. While this has led to a surge in demand for solar panels, supply has struggled to keep pace.”

This surge in demand underscores the need for scaling up India’s domestic solar manufacturing capabilities to ensure the smooth implementation of the scheme.

Subsidy Structure for Households

A key incentive under the scheme is its subsidy structure, making solar energy more affordable for Indian households. The subsidy rates are structured as follows:

• Rs 30,000 per kW for systems up to 2 kW
• Rs 18,000 per kW for additional capacity up to 3 kW
• Total subsidy capped at Rs 78,000 for systems larger than 3 kW

For Group Housing Societies/Resident Welfare Associations (GHS/RWA), a subsidy of ₹18,000 per kW is available for common facilities, including EV charging, with an upper limit of 500 kW capacity (3 kW per household).

This ensures that solar energy benefits not just individual homeowners but also residential communities.

Matching Solar Capacity with Household Needs

The program offers guidelines for suitable rooftop solar plant capacities based on household electricity consumption:

• 0-150 units/month: 1 – 2 kW solar system
• 150-300 units/month: 2 – 3 kW solar system
• Above 300 units/month: Above 3 kW solar system

By aligning solar system capacity with consumption patterns, the initiative ensures optimal utilization of solar energy for households of varying energy needs.

Economic and Environmental Benefits

The benefits of the PM Surya Ghar: Muft Bijli Yojana extend beyond just cost savings for households. Key advantages include:

• Free Electricity for Households: Reducing dependency on traditional power sources and lowering household energy expenses.
• Savings for the Government: Estimated to reduce government electricity costs by Rs 75,000 crore annually.
• Increased Use of Renewable Energy: Encouraging sustainable energy solutions across urban and rural areas.
• Reduction in Carbon Emissions: Supporting India’s commitment to a cleaner energy mix by decreasing fossil fuel dependency.

India’s Largest Domestic Solar Initiative: Growth Projections

With an ambitious target to power one crore households by March 2027, the government has set an aggressive rollout plan:

• March 2025: 10 lakh households
• October 2025: 20 lakh households
• March 2026: 40 lakh households
• March 2027: 1 crore households

State-wise Solar Installations: Leading the Charge

According to data shared during the Winter Parliamentary Session (December 2024), six states account for 88 per cent of total installations under the scheme. The top contributors are:

1. Gujarat: 3.02 lakh installations
2. Maharashtra: 1.39 lakh installations
3. Uttar Pradesh: 56,000 installations
4. Kerala: 55,000 installations
5. Tamil Nadu: 21,000 installations
6. Rajasthan: 20,000 installations

Gujarat continues to lead with its proactive approach to rooftop solar deployment, followed by Maharashtra and Uttar Pradesh. The widespread adoption of solar energy in these states underscores the scheme’s effectiveness in promoting sustainable energy solutions.

A Transformational Initiative for a Sustainable Future

As PM Surya Ghar: Muft Bijli Yojana approaches its first anniversary, its impact on India’s energy landscape is undeniable. The scheme has not only empowered lakhs of households with free electricity but also fueled demand for domestic solar panel manufacturing, aligning with India’s broader energy self-sufficiency goals.

With continued government support, industry participation, and citizen engagement, this program is set to transform India into a global leader in rooftop solar energy adoption. As more households embrace solar power, India moves closer to achieving a cleaner, greener, and energy-independent future.

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