Maarg Manthan · Topic 12.2

PM Surya Ghar Muft Bijli Yojana (Rooftop Solar)

Current Affairs & Government Schemes › Energy and Renewable Energy Schemes · Topic 12.2

PM Surya Ghar Muft Bijli Yojana is a Central scheme of the Ministry of New and Renewable Energy to install rooftop solar plants on one crore households, launched on 13 February 2024 and approved by the Union Cabinet on 29 February 2024 with an outlay of Rs 75,021 crore up to 2026 to 2027. It gives a Central subsidy of Rs 30,000 per kW for the first 2 kW and Rs 18,000 for the third kW, so a 3 kW system gets up to Rs 78,000. The aim is up to 300 units of free electricity a month, lower bills and about 30 GW of new rooftop capacity.

6 min read · UPSC Prelims · Current Affairs & Government Schemes · Energy and Renewable Energy Schemes

At a Glance

Launched 13 February 2024
Cabinet approval 29 February 2024
Outlay Rs 75,021 crore up to FY 2026 to 2027
Target One crore households, about 30 GW
Maximum subsidy Rs 78,000 for 3 kW
Exam link UPSC Prelims, Current Affairs and Government Schemes: Energy and Renewable Energy Schemes

Where Does It Fit?

This topic turns the national solar goals of the previous topic into a household programme. It works with distribution companies and with the farmer solar scheme in the next topic to spread solar across users. Previous topic: National Solar Mission (Jawaharlal Nehru National Solar Mission). Next topic: PM-KUSUM Scheme (Solar Pumps for Farmers).

How Much Subsidy Does PM Surya Ghar Give?

System size	Central Financial Assistance
Up to 2 kW	Rs 30,000 per kW, so Rs 60,000 for a 2 kW plant
2 kW to 3 kW	An additional Rs 18,000 for the third kW
3 kW and above	A cap of Rs 78,000, as subsidy is capped at 3 kW capacity
Group housing and Resident Welfare Associations	Rs 18,000 per kW for common facilities such as lighting and lifts, up to 500 kW at 3 kW per house
Loans	Collateral free loans for the balance are offered by banks at concessional rates, up to about 3 kW, at an interest rate linked to the repo rate
Free electricity	A household can generate up to about 300 units a month on a 2 kW system, and surplus power is sold back to the distribution company

How Is the Scheme Implemented?

Nodal ministry: the Ministry of New and Renewable Energy runs the scheme, with a National Programme Implementation Agency for monitoring
National portal: households apply on the national portal, choose a registered vendor, and get the subsidy credited to their bank account after inspection and commissioning
Distribution companies: State distribution companies handle technical feasibility, net metering and inspection, so their role is central
State Implementation Agencies: State agencies run awareness drives and approve vendors
Net metering: a bidirectional meter records power drawn and power sent to the grid, and the household pays only for the net use
Model Solar Village: one village in each district is developed as a model, with Rs 1 crore per village from a Central pool of Rs 800 crore
Incentive to distribution companies: distribution companies get incentives for achieving growth in rooftop capacity above a base level
Eligible households: any Indian household with a valid electricity connection and a suitable roof of its own can apply

What Else Should You Remember?

Replacement of earlier programme: the scheme replaced Phase II of the Grid Connected Rooftop Solar Programme, which gave a lower subsidy
Tenure: the scheme runs to financial year 2026 to 2027
Domestic content: solar cells and modules must be made in India, so the scheme also boosts local manufacturing
Jobs: the scheme is expected to create several lakh jobs in manufacturing, installation and maintenance, and the government cites a figure of about 17 lakh jobs
Progress reported: as reported, installations crossed 25 lakh in early 2026 and reached around 40 to 50 lakh households by mid 2026, with a goal of 75 lakh households by December 2026. The count of installations and the count of households differ, so check the portal
Central assistance paid: a parliamentary reply reported about Rs 16,000 crore of subsidy as released by January 2026
Zero bill households: the ministry has reported lakhs of households with zero electricity bills after installation
Emission benefit: rooftop solar is expected to cut carbon emissions by tens of millions of tonnes over the life of the plants
Link with national mission: the scheme helps the aim of 100 GW solar from the earlier mission, as in National Solar Mission (Jawaharlal Nehru National Solar Mission)
Roof ownership: tenants and people in crowded cities may not have access to a roof, so the benefit goes more to owners of houses
Vendor quality: complaints about poor installation, delays in subsidy and vendor quality have been reported, and the portal now has a grievance system
Financial stress on distribution companies: when rich households leave the grid, distribution companies lose high paying customers, and this can raise tariffs for others

Why Does It Matter for the Exam?

Basics: launch date, ministry and the one crore household target
Subsidy slabs: Rs 30,000 per kW for the first 2 kW and Rs 18,000 for the third kW
Features: free 300 units, collateral free loans and Model Solar Village
Links: net metering, distribution companies and the National Solar Mission
Common errors: giving Rs 78,000 as subsidy per kW, or naming the Ministry of Power as the nodal ministry

As an analytical point, rooftop solar spreads the benefits of clean power to households, but design decisions matter. Subsidy to the roof owner can leave out poorer families, and loss of paying customers hurts distribution companies. Community solar and group schemes can widen the reach.

Why Is This Topic Important?

Numbers Subsidy slabs and outlay
Process Portal, vendor, net metering
Issues Equity and utility finances

What Came Next?

The next topic covers the scheme that brings solar power to farmers. Next topic: PM-KUSUM Scheme (Solar Pumps for Farmers).

Key People and Terms

CFA Central Financial Assistance
Rooftop solar Panels fixed on a roof
Net metering Billing on net power use
RWA Resident Welfare Association
Model Solar Village District level model village
kW Kilowatt of capacity

Exam Corner

Points to Remember

Launched 13 February 2024.
Outlay: Rs 75,021 crore.
Target: one crore households.
Subsidy: Rs 30,000 per kW to 2 kW, Rs 18,000 for third kW.
Cap: Rs 78,000 for 3 kW.

Do Not Confuse With

PM Surya Ghar and PM-KUSUM Household rooftop versus farmer pumps and plants
Rooftop solar and solar parks Small distributed plants versus large ground plants
Capacity subsidy and tariff subsidy One time help for equipment versus ongoing bill support

Memory Hook

Sixty for two kilowatts, eighteen for the third: seventy-eight thousand tops.

Mains Angle

Questions ask whether household solar is inclusive and sustainable. These points give a balanced frame.

Benefits Free power, jobs, lower emissions
Concerns Equity, utility finances, quality
Way forward Community solar, grievance systems, grid upgrades

A Question You May Face

An original practice question, not a past paper question.

“Discuss the objectives of PM Surya Ghar Muft Bijli Yojana and examine the challenges in making rooftop solar inclusive.”

How to Answer

Aim Rooftop solar for one crore homes.
Support Subsidy and cheap loans.
Gaps Roof access, utility losses.
Way Community solar and quality checks.

GS Relevance

Prelims: launch, target, subsidy slabs, outlay, Model Solar Village. GS Paper 3: renewable energy, energy security, household welfare, distribution reform.

Frequently Asked Questions

What is PM Surya Ghar Muft Bijli Yojana?

It is a Central scheme of the Ministry of New and Renewable Energy launched on 13 February 2024 to install rooftop solar on one crore households. It has an outlay of Rs 75,021 crore, gives a subsidy of up to Rs 78,000 for a 3 kW system and aims to provide up to 300 units of free electricity a month.

How much subsidy is given under PM Surya Ghar?

The Central subsidy is Rs 30,000 per kW for the first 2 kW and Rs 18,000 for the third kW, with a cap at 3 kW. A 3 kW system therefore gets up to Rs 78,000. Housing societies and Resident Welfare Associations get Rs 18,000 per kW for common facilities.

How does a household apply for PM Surya Ghar?

A household registers on the national portal with its electricity connection details, applies for the plant, selects a registered vendor, and gets the system installed and inspected by the distribution company. After net metering and commissioning, the Central subsidy is paid directly into the bank account of the household.

What is a Model Solar Village?

A Model Solar Village is a village in each district that is developed as a model of solar adoption, with Rs 1 crore of Central support for each village from a pool of Rs 800 crore. The idea is that the village becomes self reliant in energy and inspires neighbouring villages.

What challenges does PM Surya Ghar face?

Challenges include vendor quality, delays in subsidy and net metering, limited access for tenants and those without roofs, and the loss of paying customers for distribution companies. Reported figures also mix installations and households, so progress should be checked on the national portal.

PYQ Practice — Statement Analysis

1 PM Surya Ghar targets rooftop solar on one crore households.

True

The scheme was launched on 13 February 2024.

2 The subsidy is Rs 78,000 per kW.

False

It is capped at Rs 78,000 for a 3 kW system.

3 The scheme is run by the Ministry of New and Renewable Energy.