PM Surya Ghar: Muft Bijli Yojana: Subsidy and Financing for Rooftop Solar

Why in news

The Union Minister of State for Ministry of New & Renewable Energy provided details on the provisions made under the PM Surya Ghar: Muft Bijli Yojana (PMSG: MBY) to make rooftop solar systems affordable for middle-income and economically weaker households.

Exam relevance

GS3 · Economy, Governance, Science & Technology · Prelims · Mains

Key facts

1. The PM Surya Ghar: Muft Bijli Yojana (PMSG: MBY) aims to make rooftop solar systems affordable.
2. Provisions include higher central financial assistance for the first two kWp of RTS capacity.
3. Collateral-free loans at a concessional interest rate (repo-rate plus 50 bps, currently 5.75%) for 10 years are available from nationalized banks.
4. RESCO/Utility-Led Aggregation (ULA) Models are included.
5. As of July 22, 2026, 39,72,447 RTS systems have been installed, covering 48,02,717 households.
6. Many consumers have reported reduced electricity bills, with over 18.93 lakh households experiencing zero electricity bills for some months.

Prelims pointers

• PM Surya Ghar: Muft Bijli Yojana (PMSG: MBY) focuses on rooftop solar (RTS) affordability.
• Financial assistance is higher for the initial 2 kWp of RTS capacity.
• Concessional loans are available at repo-rate plus 50 bps (5.75% currently) with a 10-year tenure.
• RESCO/Utility-Led Aggregation (ULA) Models are part of the scheme.
• Over 39.7 lakh RTS systems installed covering over 48 lakh households as of July 22, 2026.
• Significant reduction in electricity bills, with some households reporting zero bills.

Mains practice question

Analyze the significance of the PM Surya Ghar: Muft Bijli Yojana in promoting renewable energy adoption at the household level and its potential impact on energy affordability and environmental sustainability in India.

Static linkage

The scheme is part of India's broader push towards renewable energy and energy security, aligning with national climate change mitigation goals and the Paris Agreement commitments. It also relates to government initiatives aimed at improving the socio-economic conditions of weaker sections through access to affordable energy.

Significance

The scheme promotes the adoption of renewable energy at the household level, contributing to India's clean energy targets and reducing carbon emissions. By making rooftop solar accessible and affordable, it aims to lower electricity costs for consumers, particularly those with lower incomes, thereby enhancing energy security and potentially creating employment opportunities in the solar installation and maintenance sector. The reduction in electricity bills can lead to significant savings for households.