The PM Surya Ghar: Muft Bijli Yojana is a Central Government scheme and India's flagship residential rooftop solar subsidy scheme. It was officially launched on February 13, 2024, with a total financial outlay of ₹75,021 crore. The scheme's origin lies in the need to reduce household electricity costs and accelerate the adoption of renewable energy, thereby contributing to India's goal of achieving 500 GW of non-fossil fuel energy capacity by 2030. It was initially announced as the PM Suryodaya Yojana 2024 on January 22, 2024, before being renamed. The scheme aims to install grid-connected rooftop solar systems in one crore (10 million) homes by the end of FY 2026-27.
The core mechanism involves providing eligible households with Central Financial Assistance (CFA) to install solar panels. The subsidy is structured as 60% for systems up to 2 kW and 40% for systems between 2-3 kW, capped at a maximum of ₹78,000 for systems larger than 3 kW. The key provision is the promise of up to 300 units of free electricity per month for households that have a valid electricity connection and a suitable roof. The system allows households to earn income by selling excess electricity back to the grid through a net metering mechanism. The entire application, approval, and subsidy disbursal process is managed through a fully digital National Portal for Rooftop Solar. The scheme is implemented under the Ministry of New and Renewable Energy (MNRE) and connects to the Aatmanirbhar Bharat initiative by mandating the use of India-produced solar modules and cells. It also builds upon the earlier Phase-II Grid-Connected Rooftop Solar Programme.