The PM Surya Ghar Muft Bijli Yojana is a Central Scheme launched by the Government of India, managed by the Ministry of New and Renewable Energy (MNRE), to promote the adoption of rooftop solar systems in residential households. The scheme was announced on February 13, 2024, and formally launched on February 15, 2024, with a total outlay of ₹75,021 crore.
The scheme's primary objective is to provide free electricity to one crore households by installing rooftop solar panels, with a target completion date of March 2027. This initiative aims to solve the problem of high electricity expenditure for middle-class and poor households and contribute to India's renewable energy goals, including reaching 500 GW of renewable energy capacity by 2030.
The mechanism works by offering a Central Financial Assistance (CFA) subsidy, which is transferred directly to the beneficiary's bank account after the system's installation and approval. The subsidy is ₹30,000 per kW for systems up to 2 kW and ₹18,000 per kW for additional capacity between 2 kW and 3 kW, with a maximum subsidy of ₹78,000 for systems above 3 kW. Households can also access collateral-free, low-interest loan products at around 7% for systems up to 3 kW. Beneficiary households are entitled to receive up to 300 units of free electricity per month, and they can earn income by selling surplus power back to the Distribution Companies (DISCOMs).
The scheme connects to India's broader climate commitments, such as achieving Net Zero carbon emissions by 2070, and is expected to add 30 GW of solar capacity. It is a successor to the earlier Grid-Connected Rooftop Solar Scheme and is implemented through a national online portal, with DISCOMs acting as State Implementation Agencies (SIAs). The scheme also includes a component to establish a Model Solar Village in each district to promote energy self-reliance.