PM Surya Ghar Muft Bijli Yojana Overview

The PM Surya Ghar Muft Bijli Yojana (PMSG – MBY) is initiative launched by Prime Minister Narendra Modi in February 2024. Its primary aim is to promote the installation of rooftop solar systems across India. The scheme is designed to provide financial assistance to households, enabling them to generate their own electricity and reduce their dependency on traditional power sources.

About the Scheme

• The PMSG – MBY has a total outlay of ₹75,021 crore.
• It is set to be implemented until the financial year 2026-27.
• The scheme targets the installation of rooftop solar power systems in one crore households.
• As of January 2025, around 3.80 lakh households have benefited from the scheme, receiving central financial assistance (CFA) amounting to approximately ₹2,956 crore.

Financial Assistance Details

Each household under the scheme receives an average CFA of around ₹77,800. This financial support is crucial for households to offset the costs of installing rooftop solar systems. The assistance is processed online, ensuring a streamlined application process. Once the application is correctly submitted, the average processing time for CFA disbursal is about 15 days.

Impact on Electricity Bills

Households that install rooftop solar systems can potentially receive zero electricity bills. This situation depends on several factors. These include the solar capacity of the installed system, the amount of solar power generated, and the consumer’s self-consumption of electricity. Current estimates suggest that approximately 45 per cent of beneficiary households are receiving zero electricity bills.

State-wise Beneficiary Distribution

Gujarat leads the beneficiary count with over 3.51 lakh households, followed by Maharashtra with more than 1.92 lakh beneficiaries. Other states like Uttar Pradesh, Kerala, and Rajasthan also have participation, with beneficiary numbers of 73,602, 65,423, and 26,622 respectively.

Promoting Solar Adoption

In November 2024, the Ministry of New and Renewable Energy held a Chintan Shivir to discuss strategies for promoting the PMSG – MBY. Key recommendations included providing GST exemptions for solar installations and designating a solar city in each state. These measures aim to reduce financial barriers and encourage wider adoption of solar energy.

Quality Assurance and Vendor Grading

Participants at the Chintan Shivir also proposed a grading system for solar vendors. This initiative aims to ensure the quality of equipment and services provided to consumers. Coordinated incentives from both central and state governments for 1 kW systems were also discussed to make solar options more affordable for lower-income households.

Questions for UPSC:

1. Critically analyse the impact of the PM Surya Ghar Muft Bijli Yojana on India’s renewable energy landscape.
2. What are the key challenges faced in the implementation of the PM Surya Ghar Muft Bijli Yojana? Explain.
3. What is the significance of rooftop solar systems in urban areas? Discuss with suitable examples.
4. What are the benefits of financial assistance schemes for renewable energy? How do they influence consumer behaviour?

Answer Hints:

1. Critically analyse the impact of the PM Surya Ghar Muft Bijli Yojana on India’s renewable energy landscape.

1. Promotes solar energy adoption, targeting installation in 1 crore households.
2. Reduces dependency on traditional power sources, enhancing energy security.
3. Encourages investment in renewable technologies and green jobs.
4. Contributes to national goals of reducing carbon emissions and promoting sustainability.
5. Increases public awareness and acceptance of renewable energy solutions.

2. What are the key challenges faced in the implementation of the PM Surya Ghar Muft Bijli Yojana? Explain.

1. Regulatory hurdles and varying state electricity regulations affecting implementation.
2. Financial barriers for lower-income households despite CFA provisions.
3. Lack of awareness and understanding of solar technology among potential beneficiaries.
4. Quality assurance issues with solar vendors leading to consumer mistrust.
5. Logistical challenges in reaching remote or underserved areas for installation.

3. What is the significance of rooftop solar systems in urban areas? Discuss with suitable examples.

1. Reduces electricity bills, providing financial relief to urban households.
2. Utilizes limited space effectively, maximizing energy generation in densely populated areas.
3. Decreases urban heat island effect by reducing reliance on conventional power plants.
4. Enhances energy independence and security for urban residents.
5. Examples – Cities like Ahmedabad and Pune have successfully implemented rooftop solar initiatives, showcasing urban solar potential.

4. What are the benefits of financial assistance schemes for renewable energy? How do they influence consumer behaviour?

1. Reduces upfront costs, making renewable energy systems more accessible to households.
2. Encourages investment in solar technology by mitigating financial risks.
3. Promotes consumer confidence in adopting renewable energy solutions.
4. Stimulates market demand for solar products and services, driving innovation.
5. Influences consumer behaviour by shifting perceptions towards sustainability and energy independence.