Your Complete Guide to PM Surya Ghar Yojana -Benefits, Eligibility, and more!

PM Narendra Modi launched the PM Surya Ghar Muft Bijli Yojana at the beginning of 2024.
The target? Install rooftop solar plants in 1 crore households and make India self-reliant in energy!

Let’s understand what the PM Surya Ghar scheme is about, who it benefits, and how even those not eligible for the scheme can take advantage of the Indian government’s solar push.

What is Pradhan Mantri Suryoday Yojana, and who is it for?

PM Surya Ghar: Muft Bijli Yojana is a government initiative that encourages homeowners to install rooftop solar systems by offering financial subsidies. The scheme aims to reduce electricity bills, promote clean energy adoption, and help households generate their own solar power.

Under the programme, the government is offering up to 60% subsidy to residential solar consumers. Individuals also have the option of availing collateral-free, low-interest loans to finance their solar investment.

The beneficiaries will be able to enjoy reliable electricity at a reduced rate. Moreover, the initial investment can also be recovered within 3-5 years. After this period, electricity will essentially be free for most consumers. They can also generate an income by selling the surplus power to the grid.

It is important to note that the government had previously announced plans to completely finance solar installations for low-income households. However, that scheme is no longer applicable.

As part of the Surya Ghar scheme, a consumer will have to pay a minimum portion of the installation cost.

In January 2025, Union Minister for New & Renewable Energy Pralhad Joshi announced that more than 850,000 rooftop installations had already been completed under the PM Surya Ghar Yojana.

PM Surya Ghar Yojana is for residential homeowners who want to reduce electricity bills through rooftop solar. It is particularly beneficial for households with high daytime electricity consumption, suitable roof space, and an interest in generating clean energy. By providing government subsidies and net metering benefits, the scheme makes solar power more affordable and accessible across India.

In January 2024, the government announced a 23% subsidy hike. Under the new scheme, MNRE raised this incentive further to make solar more affordable for households.

The following is the current solar subsidy available to residential consumers. It will apply to all those individuals who submit their rooftop solar applications after 15th February 2024.

Apart from this, several states, such as UP, Jammu, Assam, and Kerala, have their own solar subsidy. For example, the UP government offers a state solar subsidy of up to ₹30,000 in addition to the Central Financial Assistance.

However, it is important to note that most state incentives are time-bound and distributed under active policies and campaigns. The central subsidy, on the other hand, is available to all residential consumers across India who install grid-tie rooftop solar systems.

To apply for the PM Surya Ghar Scheme, the applicant must be an Indian citizen with a valid electricity connection and a suitable rooftop for solar panel installation.

If rooftop space is limited, consumers can also install Building Integrated Photovoltaics (BIPV) or set up solar panels on terraces, balconies, or elevated structures.

Recently, MNRE announced that consumers can also install solar systems through Renewable Energy Service Companies (RESCO) or Utility-Led Aggregation (ULA) models and still avail the benefits.

• RESCO Model: A third-party developer installs, operates, and maintains the solar system. The consumer provides the space and buys electricity at a pre-fixed rate.
• ULA Model: The state power distribution company (DISCOM) installs and manages the solar system for the consumer.

Lastly, the applicant must not have received any other subsidy for solar panels in the past.

MNRE has just hiked the solar subsidy, making it the highest-ever incentive for rooftop solar installation. Moreover, the ministry has also simplified the application process significantly, which has made the setup process easier than ever.

Apart from this, governments of several states are offering a slew of financial incentives, such as additional subsidies, net metering, generation-based incentives, etc., to boost rooftop solar adoption.

Moreover, since the Indian government is supporting the development of solar infrastructure across the nation, DISCOMs have been instructed to avoid delays and fast-track the installation process

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