PM Surya Ghar: Muft Bijli Yojana

In February 2024, Prime Minister Narendra Modi unveiled an ambitious program named ‘PM Surya Ghar: Muft Bijli Yojana’ to promote widespread adoption of rooftop solar panels across Indian households through financial incentives.

The free electricity scheme was earlier announced by Finance Minister Nirmala Sitharaman in her interim budget speech on Februrary 1.


The scheme aims to install solar photovoltaic systems on one crore homes over coming years. This would help India boost renewable energy adoption while reducing common citizens’ monthly electricity expenses.

The project would entail an investment of over Rs 75,000 crore and all stakeholders will be integrated to a National Online Portal.

Key Benefits for Households

  • Capital Subsidy

Central government would provide upfront 40% subsidy on purchase and installation costs of rooftop solar equipment as direct benefit transfer into bank accounts.

  • Electricity Bill Savings

Households can earn by feeding surplus solar power back to grids. Savings on monthly bills could be around ₹300 if system offsets overheads fully.

  • Streamlined Grid Connection

Complex conventional procedures for connecting rooftop systems to nearest electricity distribution company grids have been simplified considerably.

  • Monetization for Local Bodies

To drive community participation, urban and rural local governing bodies facilitating rooftop solar under the scheme would also receive monetary incentives and awards from the government.

What is a Grid Connected Rooftop Solar PV System?

In grid connected rooftop or small solar photovoltaic (SPV) system, the DC power generated from solar panel is converted to AC power using power conditioning unit/Inverter and is fed to the grid.

Advantages of Grid-Connected Rooftop Solar System

  • Saving on electricity bill by the consumer.
  • Utilization of available vacant roof space, no additional land required.
  • Low gestation period.
  • No additional requirement of transmission and distribution (T&D) lines.
  • Reduces T&D losses as power consumption and generation are collocated.
  • Improvement in the tail-end grid voltages and reduction of system congestion.
  • Long term energy and ecological security by reduction in carbon emission.
  • Better management of daytime peak loads by DISCOM/ utility.
  • Meeting of the Renewable Purchase Obligations (RPOs) of obligated entities.

Prime Minister of India Narendra Modi launched the National Portal for Rooftop Solar in July 2022.


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