PM Surya Ghar Boosts Rooftop Solar by 250% Through Better Financing

India’s residential rooftop solar segment has accelerated sharply since the launch of the PM Surya Ghar: Muft Bijli Yojana, with adoption and subsidy disbursals rising at scale.  

As per The Economic Times report, the scheme completes 2 years with strong household participation driven by subsidy support and digital processing. 

The scheme provides subsidies of up to 40% for rooftop solar installations. According to MNRE data, more than 2.8 million households have been solarised so far, with subsidy payouts exceeding ₹16,000 crore. 

As per the report, while growth has been rapid, rooftop solar penetration is still below 3% of India’s 260 million electrified homes, leaving significant headroom for expansion. 

Adoption Growth and Consumer Impact 

As reported the report, SolarSquare CEO Shreya Mishra said India has seen nearly a 250% rise in residential solar adoption over the past 24 months. She credited the PM Surya Ghar scheme for reducing upfront cost barriers and improving buyer confidence. 

On savings many households installing rooftop systems under the scheme have cut monthly electricity bills by up to 90%, depending on usage and system size, making solar financially attractive for urban and semi-urban families. 

Tier-II Demand, Financing Gaps and Next Steps 

Demand is increasingly shifting beyond metros, with Tier-II and Tier-III cities across Uttar Pradesh, Maharashtra, Gujarat and Rajasthan emerging as key markets for rooftop solar. 

However upfront cost and loan processing remain friction points. While solar loans qualify as priority sector lending, the process is still slow and largely offline, which affects conversion at the consumer level. 

Read More: PM Surya Ghar Scheme Achieves 19.45 Lakh Rooftop Solar Installations! 

Conclusion 

With adoption rising but penetration still low, the rooftop solar segment remains a large opportunity, with subsidy support and digitisation acting as the main growth drivers. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.