About

• In a bid to boost solar power and sustainable progress, the Government of India launched the PM-Surya Ghar Muft Bijli Yojana (PM-SGMBY) in February 2024 for installing rooftop solar in one crore households nationwide.
• The scheme aims to provide free electricity up to 300 units every month to the one crore households of the country.

About the Scheme

• Under the scheme, the households who opt to install rooftop solar electricity units will get 300 units of electricity for free every month.
• The scheme focuses on the household segment with up to 3 kW systems, which covers most of the residential consumers in India.
• The households will apply for subsidy through the National Portal (https://pmsuryaghar.gov.in) and will be able to select a suitable vendor for installing rooftop solar. 

What is the amount of subsidy for households?

• The initiative offers a subsidy of 60% of the solar unit cost for systems up to 2 kW capacity and 40% of the extra system cost for systems between 2 and 3 kW capacity. 
• The subsidy is limited to systems up to 3 kW capacity.

• Households will also be able to access collateral-free low-interest loan products of around 7% for installation of residential Rooftop Solar systems up to 3 kW.

Other Features of the Scheme

• A Model Solar Village will be developed in each district of the country to act as a role model for adoption of rooftop solar in rural areas.
• Urban Local Bodies and Panchayati Raj Institutions shall also benefit from incentives for promoting Rooftop Solar installations in their areas.
• Through this scheme, the households will be able to save electricity bills as well as earn additional income through sale of surplus power to DISCOMs. 

Who is eligible for PM Surya Ghar Muft Bijli Yojana?

• Individuals must meet the following criteria to apply for the scheme:

1. Indian citizenship.
2. Ownership of a house with a suitable roof for solar panel installation.
3. Possession of a valid electricity connection.
4. Absence of prior subsidies for solar panels.