The PM Surya Ghar—Muft Bijli Yojana marks a monumental leap in India’s renewable energy initiatives, with the dual goals of promoting rooftop solar energy and reducing household electricity expenses. Launched in January 2024, this ambitious scheme, backed by ₹75,021 crore, aims to provide free electricity up to 300 units per month to one crore Indian households. Let’s explore the features, benefits, and implementation details of this transformative program.

Key Features of PM Surya Ghar—Muft Bijli Yojana

Innovative Solar Adoption Models
To ensure seamless adoption of rooftop solar systems, two key models have been proposed:

Renewable Energy Services Company (RESCO) Model

In this model, RESCO installs and manages rooftop solar systems on consumer properties for at least five years.
It covers installation and maintenance costs, allowing households to enjoy net metering benefits.
Consumers can also sell excess electricity back to the grid through a Power Purchase Agreement (PPA) with local distribution companies (DISCOMs).

Utility-Led Asset (ULA) Model

State DISCOMs take responsibility for the installation and maintenance of solar systems for five years before transferring ownership to households.
This ensures professional oversight during the initial phase, reducing the consumer’s burden.

Subsidy and Financial Assistance

The scheme provides attractive subsidies under the Central Financial Assistance (CFA) program:

  • 60% subsidy for systems up to 2 kW capacity.
  • 40% subsidy for systems between 2 kW and 3 kW capacity, with a cap at 3 kW.

For instance, a 2 kW system could receive a subsidy of up to ₹60,000, while a 3 kW system could get ₹78,000.

Eligibility Criteria

Households must meet specific criteria to qualify for the scheme:

  • Indian Citizenship: Applicants must be Indian citizens.
  • Valid Electricity Connection: Households must have a functional electricity connection.
  • Solar Compatibility: The roof must be suitable for solar panel installation.
  • No Existing Subsidies: Applicants should not have availed of any previous subsidies for solar installations.

Additionally, families with annual incomes below ₹2 lakh and no outstanding electricity dues are prioritized.

Simplified Application Process

To participate in the program, households can follow these steps:

  • Registration: Visit the official portal (www.pmsuryaghar.gov.in) and select the state and electricity provider.
  • System Selection: Choose the preferred rooftop solar system and vendor based on recommendations from the portal.
  • Installation: Complete the installation and apply for net metering.
  • Verification and Subsidy: Submit bank account details for subsidy disbursement.

Benefits of the PM Surya Ghar—Muft Bijli Yojana

  • Free Electricity
    Households can save significantly with up to 300 units of free electricity per month, reducing their dependency on traditional power sources.
  • Economic Empowerment
    In addition to lowering electricity bills, families can earn by selling surplus energy back to the grid.
  • Environmental Benefits
    By reducing carbon emissions by an estimated 720 million tonnes, the scheme aligns with India’s climate change goals.
  • Boost to Solar Energy Capacity
    The program aims to add 30 GW of solar capacity, generating over 1,000 billion units (BU) of electricity over 25 years.
  • Job Creation
    It is projected to create approximately 17 lakh jobs in manufacturing, installation, maintenance, and other associated sectors.

Challenges in Implementing Rooftop Solar Systems

Despite its promising potential, the scheme faces notable challenges:

  • Consumer Reluctance
    Many households, especially in states offering free electricity, show limited interest in rooftop solar systems.
  • Space Constraints
    Shared or limited rooftop spaces pose installation challenges, particularly in urban areas.
  • Financial Burden on DISCOMs
    Net metering increases the financial strain on already loss-making DISCOMs.
  • Grid Management Issues
    Without mandatory energy storage systems, integrating surplus solar energy into the grid could lead to operational inefficiencies, such as the “Duck Curve” phenomenon.
  • Quality Concerns
    Ensuring reliable installation and long-term durability of rooftop systems remains a significant hurdle.

A Roadmap to Renewable Energy Independence

The PM Surya Ghar—Muft Bijli Yojana is more than an energy subsidy program—it is a cornerstone for sustainable development. By addressing challenges through robust policies, collaboration with stakeholders, and public awareness campaigns, the scheme can achieve its ambitious goals.

India’s transition to renewable energy will not only bolster energy independence but also pave the way for economic growth and environmental conservation. With proactive participation, this initiative has the potential to transform the country’s energy landscape and secure a greener future for generations to come.