The government will also develop a Model Solar Village in each district to act as a role model for the adoption of rooftop solar in rural areas.
The PM Surya Ghar: Muft Bijli Yojana (PMSGMBY) has crossed a significant milestone, powering 10 lakh homes with solar energy as of March 10, 2025, according to the Ministry of New and Renewable Energy. Launched by Prime Minister Narendra Modi on February 13, 2024, the scheme aims to make solar energy accessible to Indian households. So far, the government has received 47.3 lakh applications and disbursed Rs. 4,770 crore in subsidies to 6.13 lakh beneficiaries.
Importantly, several states have made notable progress in the scheme’s implementation. Chandigarh and Daman & Diu have achieved 100% of their rooftop solar targets for government buildings. Meanwhile, Rajasthan, Maharashtra, Gujarat, and Tamil Nadu have also contributed significantly to installation figures.
Notably, Gujarat leads with 3,51,273 households benefiting, accounting for 41.47% of total installations. Uttar Pradesh follows with 73,602 households (8.69%), while Kerala has 65,423 households (7.73%). The government remains focused on achieving its target of 1 crore solar-powered households by 2026-27.
Furthermore, the scheme provides free electricity through subsidized rooftop solar panels, significantly cutting household energy costs. It is expected to save the government Rs. 75,000 crore annually in electricity expenses and reduce carbon emissions. Each installation offsets emissions equal to planting 100 trees.
Regarding subsidies, the amount depends on average monthly consumption. For households using 0-150 units, subsidies range from Rs. 30,000 to Rs. 60,000 for 1-2 kW solar plants. For 150-300 units, the subsidy is Rs. 60,000 to Rs. 78,000 for 2-3 kW plants. For consumption above 300 units, a Rs. 78,000 subsidy applies to plants above 3 kW. Households can apply through the National Portal, with subsidies processed within 15 days.
Additionally, the scheme includes easy financing options. Public Sector Banks offer collateral-free loans up to Rs. 2 lakh at a 6.75% interest rate. Of the 3.10 lakh loan applications received, 1.58 lakh have been sanctioned, and 1.28 lakh disbursed.
Moreover, the scheme aims to add 30 GW of solar capacity by 2027, generating 1000 billion units of electricity and cutting 720 million tonnes of CO2 emissions over 25 years. It is also expected to create 17 lakh direct jobs.
Significantly, the scheme promotes domestic production of solar modules and cells, boosting India’s renewable energy sector. Also, the government has introduced Model Solar Villages to promote solar energy adoption, with Rs. 1 crore allocated to each village.
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