India’s ambitious PM Surya Ghar: Muft Bijli Yojana (PMSGMBY), the world's largest domestic rooftop solar initiative, has crossed a major milestone with 10.09 lakh installations as of March 10, 2025. Launched by Prime Minister Narendra Modi on February 13, 2024, the scheme aims to provide free electricity to one crore residential households by harnessing solar power. By reducing reliance on conventional energy sources, the initiative empowers citizens to become energy producers while significantly cutting carbon emissions, contributing to environmental sustainability.
The scheme, implemented by the Ministry of New and Renewable Energy (MNRE), has received 47.3 lakh applications to date, with 6.13 lakh beneficiaries already receiving subsidies amounting to Rs 4,770 crore. The entire application and subsidy redemption process is streamlined through the official portal www.pmsuryaghar.gov.in, ensuring that subsidies are credited directly to beneficiaries' bank accounts within just 15 days.
A key feature of the initiative is the provision of collateral-free loans through 12 Public Sector Banks (PSBs) at a subsidized interest rate of 6.75% for loans up to Rs 2 lakh. This financial support makes rooftop solar installations more accessible and affordable for households with minimal upfront investment.
For instance, a 3 KW solar system can be installed with an initial investment of just Rs 15,000, offering potential financial returns of up to Rs 15 lakh over 25 years. The loan application process is fully digital, ensuring a seamless and hassle-free experience for applicants. So far, 3.10 lakh loan applications have been submitted, with 1.58 lakh loans sanctioned and 1.28 lakh disbursed, further accelerating the adoption of solar energy across the country.
Several states have emerged as frontrunners in implementing the scheme. Chandigarh and Daman & Diu have successfully achieved 100% of their rooftop solar targets for government buildings, setting an example for clean energy adoption. Other states, including Rajasthan, Maharashtra, Gujarat, and Tamil Nadu, are also making significant contributions to the overall installation count.
The Government is closely monitoring progress nationwide, ensuring timely execution and working towards achieving the ambitious target of one crore solar-powered households by 2026-27.
With a total budget allocation of Rs 75,021 crore, the scheme is a major driver for India's rooftop solar sector. To facilitate financing, Union Minister for New and Renewable Energy Pralhad Joshi recently engaged with leading bankers at a national workshop in Mumbai, discussing innovative models for unlocking funds and reducing financial barriers. The discussions emphasized the importance of global climate funds, risk-sharing mechanisms, and public-private partnerships to accelerate India’s transition to renewable energy.
The Government is also expanding the initiative to public infrastructure, encouraging the installation of rooftop solar systems on government buildings. This move not only lowers operational costs but also promotes wider adoption in commercial and industrial sectors.
Additionally, under the Aatmanirbhar Bharat initiative, the scheme prioritizes domestic manufacturing by mandating the use of India-made solar modules and components. As of March 2025, over 3 GW of rooftop solar capacity has been installed, with a target of 27 GW by March 2027, further strengthening the Make in India vision.
