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PM Surya Ghar Muft Bijli Yojana

Oct. 8, 2025

The PM Surya Ghar Muft Bijli Yojana (PMSGMBY) has crossed a milestone, with Public Sector Banks (PSBs) sanctioning over 5.79 lakh loan applications amounting to ₹10,907 crore as of September 2025.

About PM Surya Ghar Muft Bijli Yojana:

  • It was launched on February 15, 2024, and aims to provide free electricity to households in India.
  • Under the scheme, households will be provided with a subsidy to install solar panels on their roofs.
  • Components of PM Surya Ghar Muft Bijli Yojana
    • The scheme provides for a subsidy of 60% of the solar unit cost for systems up to 2 kW capacity and 40 percent of additional system cost for systems between 2 to 3 kW capacity.
    • The subsidy has been capped at 3 kW capacity.
    • One of the components of the scheme is the development of Model Solar Village in each district of the country.
    • Under the component Incentives to Local Bodies, the scheme has provision of providing an incentive at Rs 1,000 per rooftop solar installation in the respective jurisdiction of the Urban Local Bodies (ULBs) and Panchayat Raj Institutions (PRIs) at the Gram Panchayat level.
  • Eligibility criteria for PM Surya Ghar Muft Bijli Yojana
    • The household must be an Indian citizen.
    • The household must own a house with a roof that is suitable for installing solar panels.
    • The household must have a valid electricity connection.
    • The household must not have availed any other subsidy for solar panels.
  • Implementing agency: It is implemented by a National Programme Implementation Agency (NPIA) at the National level and by the State Implementation Agencies (SIAs) at the state level. 
    • Under the scheme, DISCOMs are designated as State Implementation Agencies (SIAs) responsible for facilitating various measures, including net meter availability, timely inspection, and commissioning of installations. 
    • DISCOMs will receive incentives based on their achievement in the installation of additional grid-connected rooftop solar capacity beyond a baseline level.

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