- Why in news
- On 4 August 2026, the Ministry of New and Renewable Energy said PM Surya Ghar: Muft Bijli Yojana has crossed 50 lakh rooftop solar installations, with July 2026 the best month so far.
- What it is
- PM Surya Ghar: Muft Bijli Yojana is a Central scheme of the Ministry of New and Renewable Energy to put rooftop solar on residential homes. It gives central financial assistance and cheap bank loans. Its aim is to cut household power bills and raise India's rooftop solar capacity.
- Outlay
- The scheme has an outlay of ₹75,021 crore.
- Nodal ministry
- It is the flagship rooftop solar scheme of the Ministry of New and Renewable Energy.
- Loan terms
- Concessional loans carry 5.75 percent interest, set at the Repo rate plus 50 basis points.
- Subsidy delivery
- Subsidy goes directly to beneficiaries by DBT, and PFMS integration allows release within 15 days.
- Ease of doing solar
- Deemed approval and feasibility waiver apply to rooftop solar up to 10 kW.
- Utility Led Aggregation
- The model serves PMAY, BPL and SC/ST households and is sanctioned for 12 States.
- Record month
- A record 2.7 lakh rooftop installations were completed in April 2026, the highest in any single month.
- Fastest addition
- The last 50 GW of solar capacity was added in just 15 months, the fastest such addition in India's history.
- Non-fossil share
- About half of India's installed electricity capacity is now non-fossil, reached well ahead of the 2030 target timeline.
- Global rank
- India ranks third globally in installed renewable energy capacity.
- Implementing ministry
- The scheme is run by the Ministry of New and Renewable Energy and covers residential rooftop solar.
- Eligibility
- Any residential consumer with a grid-connected electricity connection from the local DISCOM can apply. The scheme is demand driven.
- How to apply
- Applications are made on the National Portal of the scheme.
- Progress till December 2025
- 20,85,514 rooftop solar systems were installed, benefiting 26,14,446 households. Central Financial Assistance of Rs 14,771.82 crore was disbursed.
- Estimated benefit
- Rooftop solar in 1 crore households may generate 1,000 billion units over 25 years. This may avoid 720 million tonnes of CO2 equivalent.
- Target
- The scheme targets rooftop solar in 1 crore households.
Don’t confuse with PM Surya Ghar vs PM-KUSUM: PM Surya Ghar is for residential rooftop solar. PM-KUSUM is for farmers, covering solar pumps and solarisation of agricultural feeders.
Don’t confuse with PM-KUSUM: PM-KUSUM is also an MNRE scheme, but it targets farmers' solar pumps and grid-connected farm solar, not residential rooftops.
Schemes: 52 Prelims questions since 2013, 10 in Prelims 2026 alone. They test features, the period and who funds it. In Mains, 33 news-triggered questions, mostly GS3.
Why it matters
- Cuts household electricity bills and lets families earn from surplus power sold to the grid.
- Adds decentralised clean capacity and supports energy security and India's renewable targets.
- Cuts household power bills and spreads solar generation across homes.
- Reduces dependence on imported fuel amid West Asia energy uncertainty.
- Cuts household electricity bills and DISCOM subsidy burden.
- Adds clean power and helps India's renewable energy and emission goals.
Problems
- DISCOM resistance, as rooftop solar cuts their revenue from paying consumers.
- Quality of installation and vendor accountability, plus net metering delays.
- Households need upfront money and loan access, and vendor quality and installation delays vary.
- Rooftop solar adds variable power to distribution grids that are financially weak.
- Installations are concentrated in a few states such as Gujarat and Maharashtra, while many states lag.
- Upfront cost, vendor quality and DISCOM net-metering delays slow uptake.
Way forward
- Strengthen vendor rating and third-party inspections, and speed up net metering.
- Expand Utility Led Aggregation and the payment security mechanism for low-income and government buildings.
- Speed up subsidy payment and net-metering approvals, and enforce vendor quality standards.
- Strengthen grid and storage so rooftop power can be absorbed.
- Speed up net-metering and subsidy payments, and push low-progress states.
- Widen easy bank finance and quality checks on vendors.
Put in your answer
Household gains: Nearly 19 lakh households now have zero electricity bills.
Non-fossil share: About 50% of installed capacity is non-fossil, ahead of the 2030 timeline.
Climate gain: 1 crore homes may avoid 720 million tonnes of CO2 equivalent over 25 years.
- 2025Prelims Q70Statements on PM Surya Ghar scheme targets, training, and skilling components
- 2020Mains GS3 · Q16Benefits of solar electricity over conventional energy, and government initiatives
- 2016Mains GS3 · Q11Current status and targets of renewable energy in India
- 2020Mains GS1 · Q16Elaborate India's solar energy potential and its regional variations
- 2025Mains GS1 · Q6Explain ecological and economic benefits of solar energy generation in India
- 2025Mains GS3 · Q6Ecological and economic benefits of solar energy generation in India
- 2024Prelims Q27Which of battery storage, biomass, fuel cells, rooftop solar PV are renewables
UPSC’s own questions that come close to this issue, from our Prelims and Mains banks.
Prelims practice · Statements
Ours, not from a UPSC paper
Consider the following statements:
- 1.PM Surya Ghar: Muft Bijli Yojana is implemented under the Ministry of New and Renewable Energy.
- 2.Concessional loans under the scheme are priced at the Repo rate plus 50 basis points.
- 3.Deemed approval and feasibility waiver under the scheme apply to rooftop solar up to 100 kW.
Which of the statements given above is/are correct?
True or false?
1 of 16
Statements the way Prelims prints them. Say first, then see the fact.
1.PM Surya Ghar: Muft Bijli Yojana is implemented under the Ministry of New and Renewable Energy.
True. The scheme is the flagship rooftop solar scheme of MNRE.
2.The scheme has an outlay of about ₹75,021 crore.
True. The outlay is ₹75,021 crore.
3.Concessional loans under the scheme are priced at the Repo rate plus 50 basis points.
True. The loan rate of 5.75 percent is benchmarked to Repo plus 50 basis points.
4.Paperless loan processing under the scheme is enabled through integration with the Jan Samarth portal.
True. Jan Samarth integration enables paperless loans.
5.The Utility Led Aggregation model under the scheme targets only APL households in urban areas.
False. It targets PMAY, BPL and SC/ST households.
6.Subsidy under the scheme is released to vendors, not to beneficiaries, through the Ministry's own offices.
False. Subsidy is released directly to beneficiaries through Direct Benefit Transfer.
7.PM Surya Ghar: Muft Bijli Yojana is implemented by the Ministry of New and Renewable Energy.
True. MNRE is the implementing ministry.
8.The scheme is aimed at installing rooftop solar on residential homes.
True. It targets residential rooftop solar.
9.The scheme provides central financial assistance to households for rooftop solar.
True. Central financial assistance and cheap bank loans are given.
10.India ranks first globally in installed renewable energy capacity.
False. India is ranked third.
11.PM Surya Ghar: Muft Bijli Yojana is a demand driven scheme open to residential consumers with a grid-connected electricity connection.
True. It is demand driven and open to grid-connected residential consumers of the local DISCOM.
12.Households apply for the scheme through the respective State electricity regulatory commissions only.
False. Applications are made on the National Portal of the scheme.
13.The scheme was launched in February 2024.
True. Launched in February 2024.
14.Maharashtra has the highest number of rooftop solar installations under the scheme.
False. Gujarat leads with 5,15,052 installations; Maharashtra is second.
15.The scheme is implemented by the Ministry of Power.
False. It is implemented by the Ministry of New and Renewable Energy.
16.The scheme aims to install rooftop solar in 1 crore households.
True. The target is 1 crore households.
Written by us from the release, not by UPSC; checked by a second model.
Worth revising until Prelims 2028: most news questions come within two years of the event.