PM Surya Ghar: Muft Bijli Yojana | 10 Dec 2025

Source: ET 

Why in News? 

The Parliamentary Standing Committee highlighted the slow progress of the PM Surya Ghar: Muft Bijli Yojana, aimed at installing rooftop solar systems in one crore households by FY27. 

  • As per the committee, as of June 2025, 16 lakh rooftop solar units (16% of the target) were installed, though the government claims 24 lakh households (24% of the target) have benefited. 

What is PM Surya Ghar: Muft Bijli Yojana? 

  • About: Launched in February 2024 by the Ministry of New and Renewable Energy (MNRE), it is the world's largest domestic rooftop solar initiative, aiming to provide free electricity to households by installing rooftop solar panels. 
    • Implementation is done by the National Programme Implementation Agency (NPIA) at the national level and by State Implementation Agencies (SIA) at the state level. 
  • Objectives: The scheme offers up to 300 units of free electricity per month, targeting 1 crore households by March 2027. Installation milestones include 10 lakh by March 2025, 20 lakh by October 2025, and 40 lakh by March 2026. 
  • Eligibility: 

Eligiblity_for_PM_Surya_Ghar_Scheme

  • Key Components: 
    • Central Financial Assistance (CFA): It offers financial support to residential consumers for installing rooftop solar panels via the National Portal. 
    • Model Solar Village: Establish one Model Solar Village per district to promote energy self-reliance. Villages with population >5,000 (or >2,000 in special category states) are eligible for participation. 
  • Subsidies & Financial Support: It provides a subsidy of up to 40% for rooftop solar panel installation and offers collateral-free, low-interest loans (~7%) for up to 3 kW residential rooftop solar (RTS) systems. 
  • Key Benefits: Adds 30 GW of solar capacity, creates around 17 lakh direct jobs, and reduces CO2 emissions by 720 million tonnes over 25 years.  
    • Expected annual savings of Rs 75,000 crore annually in electricity costs for the government. 
    • Households with a 3 kW rooftop system producing over 300 units per month can earn around Rs 18,000 per year by selling surplus electricity to DISCOMs.

PM_Surya_Ghar_Scheme

  • Role in Fulfilling India's COP26 Goals: It will speed up the adoption of sustainable energy in India and help in achieving its promises at UN Climate Change Conference in Glasgow (COP26) 2021, which are:  
    • Reach 500 GW of renewable energy capacity by 2030 
    • Meet 50% of its energy requirement through renewable sources by 2030  
    • Cut the total estimated carbon emissions by 1 billion tonnes till 2030  
    • Bring down the carbon intensity of the economy by under 45% 
    • Become a net zero carbon nation by 2070. 
  • Role of DISCOMs in Promoting PM Surya Ghar Scheme: As SIAs, electricity distribution companies (DISCOMs) help promote rooftop solar adoption by providing net meters and conducting inspections and installation commissioning. 

Frequently Asked Questions (FAQs) 

Q. What is PM Surya Ghar Muft Bijli Yojana? 
Launched in February 2024, it is India’s largest domestic rooftop solar scheme providing free electricity to households via rooftop solar panels. 

Q. What financial support does the scheme provide? 
Up to 40% subsidy and collateral-free low-interest loans (~7%) for rooftop solar systems up to 3 kW. 

Q. How does the scheme contribute to climate goals? 
Adds 30 GW solar capacity, reduces CO2 emissions by 720 million tonnes, and supports India’s renewable energy targets and net-zero commitment by 2070. 

Summary 

  • PM Surya Ghar Muft Bijli Yojana provides free rooftop solar electricity to households, targeting 1 crore installations by March 2027. 
  • The scheme includes subsidies, low-interest loans, and Model Solar Villages to promote energy self-reliance. 
  • It supports climate goals, reduces CO2 emissions, and adds 30 GW solar capacity, contributing to India’s renewable energy targets. 
  • Implementation depends on active state participation and DISCOM involvement, creating employment opportunities and financial benefits for households. 

UPSC Civil Services Examination, Previous Year Question (PYQ) 

Q. With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct? (2015)

  1. It is a Public Limited Government Company. 
  2. It is a Non-Banking Financial Company. 

Select the correct answer using the code given below: 

(a) 1 only  

(b) 2 only 

(c) Both 1 and 2  

(d) Neither 1 nor 2 

Ans: (c)