PM Surya Ghar: Muft Bijli Yojana

• 01 Jan 2025

Key Points 

• Launch Year: 2024 
• Nodal Ministry: Ministry of New and Renewable Energy (MNRE). 
• Eligibility: Indian citizens, homeowners, valid electricity connection, no prior solar subsidy. 
• Benefits: Subsidy on the Suitable Rooftop Solar Plant Capacity, Free Electricity. 
• Target: Solar power to 1 crore households by March 2027. 
• Total Outlay: Rs 75,021 crore 

What are the Key Features of the PM Surya Ghar: Muft Bijli Yojana? 

• About: Launched on 15^th February 2024, PM Surya Ghar Muft Bijli Yojana, the world's largest rooftop solar initiative, aims to provide free electricity to one crore households by March 2027. 
• Eligibility Criteria:  
  • The household must include individuals who are Indian citizens. 
  • The household must own a house with a roof that is suitable for installing solar panels. 
  • The household must have a valid and active electricity connection. 
  • The household must not have availed any other subsidy for solar panel installation. 
• Free Electricity for Beneficiaries: Each beneficiary household is entitled to 300 units of free electricity per month, reducing monthly utility costs significantly while fostering sustainable energy practices . 
• Comprehensive Subsidy Structure: The scheme offers a subsidy of up to 40% to households, making renewable energy more affordable and accessible.  

Subsidy Details

Average Monthly Electricity Consumption (units)	Suitable Rooftop Solar Plant Capacity	Subsidy Support
0-150	1-2 kW	Rs. 30,000/- to Rs.  60,000/-
150-300	2-3 kW	Rs. 60,000/- to Rs. 78,000/-
> 300	Above 3 kW	Rs. 78,000/-

•  Additional Support for Residential Societies: The subsidy for Group Housing Society/Resident Welfare Association (GHS/RWA) is Rs. 18,000 per kW for common facilities, including EV charging, up to 500 kW capacity, covering individual rooftop plants as well.  
• Low-Interest Loans for Accessibility: The scheme facilitates collateral-free loans at a 7% interest rate for rooftop solar installations up to 3 kW, ensuring affordability for low- and middle-income families . 
• Revenue Generation for Households: Beneficiary households can generate additional income by selling surplus power from their rooftop solar installations to local DISCOMs, creating a sustainable revenue model . 
• Significant Carbon Emission Reduction: By switching to solar energy, the scheme is projected to cut 720 million tonnes of CO2 emissions over a 25-year operational lifetime, contributing to global environmental goals . 
• Annual Savings for the Government: The government is expected to save Rs 75,000 crore annually by reducing dependency on conventional energy sources . 
• Large-Scale Job Creation: The initiative will create approximately 17 lakh jobs in various fields, including manufacturing, logistics, installation, and maintenance of solar systems . 
• Capacity Building: The scheme aims to install 1 crore solar rooftops, requiring 1 lakh teams of 3-4 technicians. 
  • To ensure quality installations, the Ministry of New and Renewable Energy (MNRE) will provide training for technicians, installers, engineers, and other stakeholders like DISCOM and banking officials, as outlined in the skilling and capacity building guidelines issued in July 2024. 

 Model Solar Village 

• Goal of the Initiative: The Model Solar Village component seeks to establish one solar-powered village in each district to showcase energy self-reliance and renewable energy adoption . 
• Financial Allocations: The government has allocated Rs 800 crore, with Rs 1 crore designated for each selected village . 
• Selection Criteria for Villages: Villages with a population of over 5,000 (or 2,000 for special category states) are eligible for selection under this initiative . 
• Competitive Implementation Model: Villages compete to achieve the highest renewable energy capacity within six months of selection to receive financial support . 

What is the Implementation Framework and Impact of the PM Surya Ghar: Muft Bijli Yojana? 

• Implementation Framework: 
  • National Program Implementing Agency: REC Ltd. has been designated as the National Program Implementing Agency (NPIA) to oversee execution at both the national and state levels . 
  • Role of DISCOMs: State DISCOMs are tasked with responsibilities like inspections, vendor management, net meter installations, and system commissioning . 
  • Capacity Building Programs: Training initiatives focus on skilling DISCOM staff, REDAs, and financial institutions, ensuring smooth implementation . 
• Impact of the Scheme: 
  • Household-Level Benefits: Beneficiary households will experience substantial savings on electricity bills and additional income through energy sales . 
  • Contribution to Renewable Energy Goals: The scheme aims to install 30 GW of residential rooftop solar capacity, advancing India’s commitment to increasing its renewable energy share . 
  • Long-Term Environmental Impact: The initiative is expected to generate 1,000 billion units of clean electricity over its lifetime, significantly reducing reliance on non-renewable resources . 

Latest Update 

• As of 3^rd December 2024, a total of 1.45 crore registrations and 26.38 lakh applications have been reported on the National Portal. 
• Installations under the scheme are projected to surpass 10 lakh by March 2025, double to 20 lakh by October 2025, reach 40 lakh by March 2026, and ultimately achieve the target of one crore by March 2027.