The PM Surya Ghar: Muft Bijli Yojana, launched by Prime Minister Narendra Modi on February 13, 2024, is India’s flagship initiative for promoting rooftop solar installations in residential sectors.
Backed by a central subsidy and rapid deployment across states, the programme has not only accelerated solar adoption but also delivered significant economic and environmental returns. With more than 6.8 lakh installations completed in less than a year, it stands as the world’s largest domestic rooftop solar programme.
As of January 2025, the PM Surya Ghar Yojana has achieved ₹1,619 crore in annual electricity savings through 6.8 lakh installations. These installations amount to 26.27 lakh kilowatt peak capacity and are estimated to generate 4.37 billion units of electricity each year.
Over a projected 25-year lifespan, this translates into savings exceeding ₹36,000 crore. With a government investment of ₹4,410 crore in subsidies, the financial return is nearly eight times higher, not including wider benefits to households and the national grid.
The programme has led to the avoidance of 3.59 million tonnes of carbon dioxide emissions in its first year alone. Over the systems' projected lifespan of 25 years, avoided emissions could reach 89.65 million tonnes. This surpasses India’s rooftop solar mission target of 72 million tonnes and supports the country’s broader commitment towards achieving net zero emissions by 2070.
Since its inception, the PM Surya Ghar Yojana has seen an average monthly installation rate of 70,000 systems. This is a tenfold increase compared to pre-scheme figures. More than 630,000 installations were completed in just nine months. With a national goal of reaching one crore households by 2027, the momentum suggests significant further expansion is possible. At full scale, the initiative is expected to save ₹75,000 crore in electricity costs annually.
The rooftop solar systems help households reduce their dependence on grid electricity and protect against rising electricity tariffs. For the distribution companies, reduced demand lowers subsidy burdens and transmission losses.
At a national level, if one crore households adopt rooftop solar, total savings could cross ₹5 lakh crore over 25 years. This would boost gross domestic product, improve the energy trade balance, and allow reallocation of funds to other sectors such as health, education, and infrastructure.
According to a recent state performance index, Gujarat leads with a score of 0.85, followed by Kerala, Uttarakhand, Andhra Pradesh, Maharashtra, and Uttar Pradesh. Union Territories like Lakshadweep and Ladakh have also demonstrated commendable participation.
The early stages of the process—registration, application, and initial installation—have been identified as areas requiring further efficiency, while the subsidy disbursal and inspection stages show high effectiveness.
To meet the 1 crore household target by 2027, focused expansion is necessary in high-potential states such as Rajasthan, Telangana, and Madhya Pradesh. In regions with geographical challenges like the Northeast and the Himalayas, tailored interventions and support will be essential. Enhancing digital tools, boosting domestic solar production, and training workers, particularly in underperforming states, will be vital to unlocking the scheme’s full potential and strengthening India’s clean energy roadmap.
Read More: PM Surya Ghar: Muft Bijli Yojana Surpassed 10 Lakh Rooftop Solar System.
The PM Surya Ghar: Muft Bijli Yojana has demonstrated its ability to deliver high returns on public investment, enhance household savings, support environmental goals, and strengthen India’s energy independence. As the programme scales, it is set to play a pivotal role in shaping a sustainable and economically resilient future.
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Published on: Jun 4, 2025, 3:30 PM IST
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