Rooftop solar powers 16.78 lakh households under PM Surya Ghar Scheme

Under the PM Surya Ghar: Muft Bijli Yojana, 16.78 lakh households have been equipped with rooftop solar installations, with the government disbursing over Rs 9,000 crore as financial assistance. Implemented by the Ministry of New & Renewable Energy since February 2024, the scheme targets rooftop solar panels in one crore households by 2026-27.

Solar energy

The government’s ambitious rooftop solar scheme, PM Surya Ghar: Muft Bijli Yojana (PMSG: MBY), has seen rapid progress since its launch in February 2024. As of August 5, 2025, 16.78 lakh households have been equipped with rooftop solar installations under the programme, while Rs 9,280.88 crore has been disbursed as Central Financial Assistance (CFA) to beneficiaries, Minister of State (MoS) for New and Renewable Energy and Power Shripad Yesso Naik informed the Rajya Sabha on Tuesday.

Targeting One Crore Households by 2026-27

The scheme aims to achieve rooftop solar installations in one crore households across the residential sector by 2026-27. By providing substantial CFA, the government seeks to make solar power accessible and affordable, helping households cut electricity costs and, in many cases, earn income by selling surplus electricity back to the grid.

The CFA is transferred directly to beneficiaries’ bank accounts, ensuring transparency and minimising delays. This financial support significantly reduces the upfront cost of rooftop solar systems, encouraging wider adoption, especially in rural and semi-urban areas.

Evolution from Earlier Programmes

India’s rooftop solar journey began with the Grid Connected Rooftop Solar Programme Phase-II, launched in March 2019 to promote decentralised solar energy generation through subsidies and incentives. Initially scheduled to run until March 2023, the timeline was extended to March 2026 in October 2022.

However, with the launch of PM Surya Ghar: Muft Bijli Yojana in February 2024, the earlier programme was subsumed under the new scheme. This consolidation streamlined implementation, unified objectives, and enhanced the scale of operations to meet more ambitious renewable energy targets.

Key Benefits and Features

The PMSG: MBY scheme offers:

  • Central Financial Assistance covering a significant portion of installation costs.
  • Direct benefit transfer of CFA to ensure transparency.
  • Special focus on rural and semi-urban households to boost equitable access.
  • Support for surplus electricity sales to the grid, providing an additional revenue stream.
  • Stimulus to the domestic solar manufacturing sector, creating jobs and supporting the Make in India initiative.

Economic and Environmental Impact

The rooftop solar push under PMSG: MBY is contributing to India’s renewable energy goals while delivering tangible economic benefits to households. Lower electricity bills improve disposable income, and the scheme supports green jobs in installation, maintenance, and manufacturing.

Environmentally, the scheme helps reduce dependence on fossil fuels, cuts greenhouse gas emissions, and improves air quality. By decentralising power generation, it also reduces transmission losses and enhances energy security.

The government has set a broader target of achieving 500 GW of renewable energy capacity by 2030, and rooftop solar is a key contributor to this vision. The progress made so far under PMSG: MBY — 16.78 lakh installations in just over a year — reflects strong public response and effective policy execution.

If this momentum continues, India is well on track to not only meet but potentially exceed its rooftop solar target ahead of the 2026-27 deadline, lighting millions of homes with clean, affordable solar power.

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