The PM Surya Ghar: Muft Bijli Yojana is an ambitious initiative by the Government of India aimed at providing free electricity to one crore households through rooftop solar installations. Launched by Prime Minister Narendra Modi on 13th February 2024 and approved by the Union Cabinet on 29th February 2024, the scheme has a total outlay of Rs 75,021 crore and will be implemented until FY 2026-27.
This transformative scheme not only promotes clean energy but also significantly reduces electricity bills, empowering households to generate their own power and even earn by selling surplus electricity back to the grid. It marks a major step towards India’s goal of expanding renewable energy capacity and reducing carbon emissions.
How PM Surya Ghar: Muft Bijli Yojana Works
Under this scheme, households installing rooftop solar panels will receive subsidies based on the capacity of the system:
- 60% subsidy on solar systems up to 2 kW capacity
- 40% subsidy on additional capacity between 2 kW to 3 kW
- Subsidy capped at 3 kW capacity
Subsidy Breakdown at Current Benchmark Prices
- 1 kW system – Rs 30,000 subsidy
- 2 kW system – Rs 60,000 subsidy
- 3 kW system – Rs 78,000 subsidy
Additionally, households can avail of collateral-free, low-interest loans at around 7% interest to finance the solar unit, making it accessible even to middle-class and lower-income families.
Eligibility Criteria for PM Surya Ghar: Muft Bijli Yojana
To benefit from this scheme, the applicant must meet the following conditions:
- Must be an Indian citizen
- Should own a house with a suitable rooftop for solar panel installation
- Must have a valid electricity connection
- Should not have availed of any other solar subsidy previously
Step-by-Step Guide to Apply for the Scheme
The government has streamlined the application process, making it entirely digital to ensure transparency and efficiency. Households interested in benefiting from this scheme should follow these steps:
Step 1: Register on the National Portal
- Choose your state and electricity distribution company.
- Provide your electricity consumer number, mobile number, and email ID.
Step 2: Log In and Submit Your Application
- Access your account using your consumer number and mobile number.
- Complete the application form with the necessary details for rooftop solar installation.
Step 3: Obtain Feasibility Approval
- Your application will be reviewed by the electricity distribution company (DISCOM).
- The feasibility of installation will be assessed before granting approval.
Step 4: Install the Solar System
- Once approval is received, select a registered vendor to install the solar system at your residence.
Step 5: Apply for a Net Meter
- After installation, request a net meter to track electricity production and usage.
Step 6: Receive Subsidy Directly in Your Bank Account
- DISCOM will inspect the installed system and issue a commissioning certificate.
- Provide your bank details and a canceled cheque for subsidy disbursement.
- The financial aid will be deposited into your bank account within a month.
Advantages of the PM Surya Ghar: Muft Bijli Yojana
1. Free Electricity Up to 300 Units Per Month
A solar system with a 3 kW capacity can generate more than 300 units of electricity per month, allowing households to enjoy substantial savings on their electricity bills.
2. Significant Reduction in Energy Expenses
- A household consuming up to 300 units per month can cut down electricity expenses by approximately ₹15,000 annually.
- Even if the system is financed through a loan, after paying an EMI of around ₹610 per month, the household can still save ₹1,265 monthly.
3. Generate Income by Selling Excess Power
Households can sell surplus electricity to DISCOMs, turning their solar panels into a source of additional earnings.
4. Affordable Loans for Solar Installation
- Households can avail of loans with no collateral requirement at a 7% interest rate.
- The loan interest is only 0.5% above the current RBI Repo Rate, making it cost-effective.
5. Promote Environmental Sustainability
- The initiative aims to cut down 720 million tonnes of CO₂ emissions over 25 years.
- Encourages clean energy adoption, reducing dependence on fossil fuels and contributing to a greener planet.
Additional Features of the Scheme
- Development of Model Solar Villages: At least one solar village per district will be developed to inspire adoption of solar energy in rural areas
- Support for Urban Local Bodies and Panchayats: Incentives will be provided to local bodies for promoting rooftop solar installations
- Funds for Innovative Projects: The scheme will support innovative projects in the solar energy sector
Economic and Environmental Impact
The PM Surya Ghar: Muft Bijli Yojana is expected to add 30 GW of rooftop solar capacity to the residential sector, resulting in:
- Generation of 1000 Billion Units (BUs) of electricity
- Reduction of 720 million tonnes of CO₂ emissions
- Creation of approximately 17 lakh jobs in manufacturing, logistics, sales, installation, maintenance, and other services
Why Should You Opt for This Scheme?
If you are a homeowner in India, installing a rooftop solar system under this scheme offers huge financial and environmental benefits. You will:
- Save on electricity bills (up to Rs 15,000 annually)
- Earn extra income by selling surplus electricity
- Avail of government subsidy (up to Rs 78,000)
- Get low-interest loans to finance the installation
- Reduce carbon footprint and contribute to a greener future
How to Get Started?
- Register on the official portal
- Choose your state and electricity provider
- Apply for the subsidy and install your solar system
- Enjoy free electricity and start saving!