New Delhi: The PM Surya Ghar: Muft Bijli Yojana (PMSGMBY) has completed a year since its launch, reinforcing the government’s commitment to promoting solar energy adoption across the country.
With an allocation of Rs 75,021 crore, the program is designed to expand rooftop solar installations and enable households to generate their own electricity. A key component of this initiative is the Model Solar Village program, which is driving energy self-reliance and sustainability at the grassroots level.
It’s worth noting that even before the Narendra Modi government’s rooftop solar initiative announcement, Modhera, a village in Gujarat’s Mehsana district, achieved the distinction of becoming the first fully solar-powered village in 2022.
About 1,350 of the village’s 1,700 homes were equipped with 1 KW rooftop photovoltaic (RTPV) panels. Modhera’s success underscores the significant potential for the “Model Solar Village” program to thrive across all states in India.
Empowering Rural India with Solar Energy
Under the Model Solar Village initiative, villages across India have been selected through a competitive process to qualify as Model Solar Villages. Each selected village receives Rs 1 crore in central financial assistance (CFA) to transition into a fully solar-powered community. To be eligible, a village must be a revenue village with a population exceeding 5,000, except in special category states where villages with over 2,000 residents qualify.
The selected villages undergo a rigorous evaluation process, focusing on their ability to install distributed renewable energy (RE) capacity. Over a six-month competition period, candidate villages work towards maximizing solar adoption under PMSGMBY and other government programs like PM-KUSUM. The village with the highest RE capacity in each district is designated as the Model Solar Village.
The initiative focuses on providing 24×7 solar-powered electricity to all households and public spaces, setting a benchmark for rural solar adoption. It also integrates solar-based home lighting systems, water systems, agricultural pumps, and streetlights, ensuring comprehensive solar infrastructure development.
Implementation and Financial Support
The State/UT Renewable Energy Development Agencies oversee the implementation under the supervision of a District Level Committee (DLC). The DLC ensures smooth execution by mobilizing communities, engaging local Panchayats, and collaborating with stakeholders.
The financial assistance under this initiative is used to develop infrastructure such as:
- Community Solar Plants (with or without battery storage)
- Solar-powered livelihood equipment for self-help groups (SHGs)
- Rooftop Solar Plants on Government buildings
- Solar-powered public lighting
- Solar Agri-PV Pumps
The assets created under this scheme are entirely owned and operated by Panchayats or community collectives, reinforcing decentralized energy ownership.
One Year of PM Surya Ghar: Muft Bijli Yojana
Launched on 13 February 2024, PM Surya Ghar: Muft Bijli Yojana has significantly boosted rooftop solar installations across India. The scheme aims to empower residential households by enabling them to generate their own electricity, reduce dependence on the grid, and lower electricity bills.
After the launch PM Stated:
“PM-Surya Ghar: Muft Bijli Yojana is going to be a game changer for bringing sustainable energy solutions to every home. Harnessing solar power, this initiative promises to light up lives without burdening pockets, ensuring a brighter, greener future for all.”
Key objectives of the scheme include:
- Promoting solar rooftops in residential areas
- Providing free electricity benefits to eligible households
- Encouraging energy self-sufficiency in communities
- Enhancing green and clean energy adoption
The scheme integrates with other renewable energy programs, ensuring effective utilization of solar resources for sustainable development.
The Budget 2025 also increased allocation for PMSGMBY by 80 per cent to 20,000 crore. Commenting on the budget announcements Vikram V, Vice President & Co-Group Head, ICRA Limited said:
“The Union Budget continued its focus on clean energy with increased allocation to the PM Surya Ghar Muft Bijli Yojana and national manufacturing mission to promote the manufacturing of solar PV cells, wind turbines, grid-scale batteries and electrolysers. The increased allocation to the rooftop solar scheme will aid the renewable capacity addition in the country. Moreover, the incentive of additional borrowing of 0.5 per cent of GSDP to states for distribution sector reforms is a positive for the sector, though Implementation remains key.”
As PMSGMBY completes its first year, the government continues to push for greater solar energy adoption across the country. The Model Solar Village initiative, with over Rs 800 crore allocated, is set to expand further, showcasing how renewable energy can be integrated into rural infrastructure.
By fostering community-driven solar projects, India is making significant strides toward energy security and sustainability. The success of PMSGMBY serves as a blueprint for future clean energy programs, reinforcing the country’s commitment to achieving net-zero emissions and universal electricity access.
Also read –
PM Surya Ghar Muft Bijli Yojana Hits 8 Lakh Milestone within a Year
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