PM Surya Ghar Scheme

Why in News ?

The Parliamentary Standing Committee has expressed concern over the slow progress of the PM Surya Ghar: Muft Bijli Yojana, which aims to install 1 crore rooftop solar systems by FY27.

As of June 2025:

• 16 lakh rooftop systems (16%) have been installed,
• While the government reports 24 lakh beneficiary households (24%).

The Committee noted inconsistencies, slow implementation, and logistical bottlenecks.

Background & Context

• India is pursuing an energy transition to reduce dependence on fossil fuels and achieve its COP26 climate commitments.
• Rooftop solar is one of the most cost-effective and people-centric solutions for clean energy adoption, but historically, rooftop solar penetration in India has been low (only 8–9% of India’s installed solar capacity).
• To rapidly scale up domestic solar adoption, the government launched its largest-ever residential solar scheme — the PM Surya Ghar initiative — in 2024.
• The scheme is central to India's push for distributed renewable energy, reducing household electricity burden and supporting grid decentralisation.

What is PM Surya Ghar: Muft Bijli Yojana ?

About the Scheme

• Launched: February 2024 by the Ministry of New & Renewable Energy (MNRE).
• Objective: Install rooftop solar systems on 1 crore households by March 2027.
• Execution:
  • National Programme Implementation Agency (NPIA) – central-level coordination
  • State Implementation Agencies (SIAs) – state-level monitoring & execution

It is the world’s largest residential rooftop solar programme.

Objectives of the Scheme

• Provide up to 300 units of free electricity per month to households having rooftop solar.
• Promote solar adoption through clear annual milestones:
  • 10 lakh systems by March 2025
  • 20 lakh by October 2025
  • 40 lakh by March 2026
  • 100 lakh (1 crore) by March 2027
• Integrate rooftop solar into India’s broader climate commitments and reduce power subsidy burden on states.

Eligibility

• All residential households with a suitable rooftop are eligible.
• Households must apply via the National Solar Rooftop Portal.
• DISCOM clearance, net-metering readiness, and verified installation are required.

Key Components of the Scheme

1. Central Financial Assistance (CFA)

• Direct subsidy up to 40% of the cost of rooftop solar installation.
• Disbursed through the National Portal directly to the consumer.

2. Model Solar Village

• One solar village per district to showcase solar adoption.
• Eligibility:
  • Population > 5,000 (normal states)
  • Population > 2,000 (special category states)

3. Loan Support

• Collateral-free, low-interest loans (~7%) available for up to 3 kW rooftop solar systems.

Key Benefits of the Scheme

1. Energy & Climate

• Adds 30 GW rooftop solar capacity.
• Reduces 720 million tonnes of CO₂ over 25 years.

2. Economic

• Expected Rs 75,000 crore annual savings** for the government** on electricity subsidies.
• Households generating surplus power can earn up to Rs 18,000/year by selling excess electricity.

3. Employment

• Creates 17 lakh direct jobs in installation, maintenance, manufacturing & logistics.

4. Grid Stability

• Promotes decentralised renewable energy, easing pressure on thermal power and transmission networks.

Role in Achieving India’s COP26 Commitments

The scheme directly supports India’s commitments announced at Glasgow (COP26):

• 500 GW renewable energy capacity by 2030
• 50% electricity from renewable sources by 2030
• Reduce projected carbon emissions by 1 billion tonnes (by 2030)
• Reduce carbon intensity by <45%
• Achieve Net Zero by 2070

Role of DISCOMs in PM Surya Ghar

DISCOMs act as State Implementation Agencies (SIAs) and are responsible for:

• Promoting rooftop solar adoption
• Conducting feasibility assessments
• Installing net meters
• Approving applications on the National Portal
• Supervising commissioning of rooftop solar units

Their efficiency largely determines the success of the scheme.

Challenges Identified by the Parliamentary Committee

• Slow pace of installations
• Inadequate coordination between DISCOMs and households
• Delays in net-metering approvals
• Supply chain constraints for solar equipment
• Limited awareness at the household level
• Inconsistency in reporting installed vs. benefitted households