India recently achieved a record installation of 15,000 rooftop solar units in a single day under the PM Surya Ghar: Muft Bijli Yojana. Maharashtra has emerged as the second state, after Gujarat, to surpass six lakh installations. Launched in February 2024, the scheme aims to provide up to 300 units of free electricity monthly to one crore households.
Subsidy Structure and Features
- Central Financial Assistance (CFA):
- Up to 2 kW: 60% of system cost.
- Above 2 kW up to 3 kW: 40% of additional cost.
- Above 3 kW: Fixed subsidy of ₹78,000.
- Financial Support: Provides collateral-free, low-interest loans (~7%) for systems up to 3 kW.
- Mechanism: Uses a digital national portal for applications and Direct Benefit Transfer (DBT) of subsidies upon inspection by the local Distribution Company (DISCOM).
- Net-Metering: Enables households to sell surplus power back to the grid, generating extra income and reducing transmission and distribution (T&D) losses.
IASPOINT Booster Facts
- Energy Goal: A critical component of India’s target to reach 500 GW of non-fossil-fuel energy capacity by 2030 (Panchamrit strategy, COP26).
- Environmental Target: Supports India’s commitment to achieve Net Zero emissions by 2070.
- Employment: Projected to generate approximately 17 lakh direct jobs in manufacturing, logistics, and maintenance.
- Local Adoption: The government is developing a ‘Model Solar Village’ in every district to promote rural and semi-urban uptake.
- Energy Mix: As of mid-2026, solar energy constitutes over 50% of India’s total renewable energy capacity.