The PM Surya Ghar: Muft Bijli Yojana, launched in February 2024, is rapidly emerging as one of India’s largest clean energy initiatives aimed at promoting rooftop solar adoption among households.
The scheme, introduced by the Centre, aims to install rooftop solar systems in one crore homes by FY27 while helping families reduce electricity bills and generate clean energy. According to the Ministry of New and Renewable Energy (MNRE), more than 26.19 lakh rooftop solar systems had already been installed under the scheme as of March 19, 2026.
The scheme allows eligible households to install grid-connected rooftop solar systems and receive up to 300 units of free electricity every month through solar power generation.
Apart from lowering electricity bills, households can also earn additional income by exporting surplus electricity to the power grid through net metering systems.
The entire application and approval process has been digitised through a national online portal, making the scheme more accessible for consumers across the country.
To encourage adoption, the government provides Central Financial Assistance (CFA) to reduce installation costs. Since the scheme’s launch, more than ₹17,967 crore has reportedly been disbursed as subsidy support.
Under the current subsidy structure:
| Rooftop Solar Capacity | Subsidy |
| Up to 2 kW | 60% of system cost |
| Additional 2-3 kW capacity | 40% of additional cost |
| Maximum subsidy for 3 kW system | ₹78,000 |
Households consuming between 150 and 300 electricity units monthly are generally advised to install a 2-3 kW solar system and can receive subsidy support of up to ₹78,000.
The scheme also offers collateral-free loans at nearly 7% interest for systems up to 3 kW, making rooftop solar installations more affordable.
To apply, the applicant must be an Indian citizen, own a house with a suitable rooftop, and have a valid electricity connection. Beneficiaries should also not have availed any other rooftop solar subsidy scheme.
Applicants can register through the PM Surya Ghar national portal, obtain feasibility approval from their local DISCOM, install the system through a registered vendor, and apply for net metering.
According to the government, subsidy amounts are generally transferred directly into beneficiaries’ bank accounts within 15 days after successful verification.
With rising electricity costs and growing focus on renewable energy, the PM Surya Ghar Muft Bijli Yojana is helping households transition towards cleaner and more affordable power solutions. The strong adoption numbers also reflect increasing consumer interest in rooftop solar systems across India.
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.
Published on: May 29, 2026, 5:52 PM IST
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