India’s push for affordable solar energy under the PM Surya Ghar: Muft Bijli Yojana gained traction as public sector banks sanctioned over 579,000 loans worth ₹10,907 crore ($1.31 billion) by September 2025.
The milestone highlights the growing demand for rooftop solar systems among households, facilitated by easier credit access and digital integration through the government’s JanSamarth and PM Surya Ghar portals.
Loan Scheme Eases Access to Solar Power
The government’s model loan scheme provides collateral-free loans of up to ₹2 lakh at competitive interest rates, with longer repayment tenors and a six-month moratorium from disbursement.
The initiative aims to make solar power financially viable for middle- and lower-income households by aligning repayments with monthly electricity savings.
To improve uptake, the Ministry of Finance has introduced several enhancements, including the inclusion of co-applicants, the removal of capacity-based caps and simplified documentation.
These revisions, made in consultation with participating banks, are expected to extend the scheme’s reach across both urban and rural India.
“The ease of access and the digital sanction process have accelerated adoption,” a senior finance ministry official said, adding that feedback from early users prompted recent improvements.
Seamless Digital Financing
The scheme’s end-to-end application process is managed through the JanSamarth Portal, integrated with the PM Surya Ghar national platform. Applicants can apply online, upload self-declarations, and receive approvals without visiting bank branches.
Officials said the integration ensures faster credit delivery, transparent tracking, and data-driven decision-making for beneficiaries.
The digital framework also allows real-time coordination between banks, state-level committees, and the Ministry of New and Renewable Energy.
A Growing Solar Footprint
Launched in February 2024, the PM Surya Ghar: Muft Bijli Yojana is the world’s largest residential rooftop solar initiative, targeting one crore households by March 2027.
The scheme offers up to 40 percent subsidy and free electricity for households generating sufficient solar power to offset their consumption.
As of March 2025, more than 10 lakh homes had already installed rooftop systems, supported by ₹4,770 crore in subsidies.
States such as Rajasthan, Maharashtra, Gujarat and Tamil Nadu continue to lead installations, while union territories like Chandigarh and Daman & Diu have achieved 100 percent solar coverage of their government buildings.
Each rooftop installation offsets carbon emissions equivalent to planting 100 trees, contributing to India’s net-zero goals.
Broader Economic and Environmental Gains
The initiative is expected to add 30 gigawatts of rooftop solar capacity, reduce carbon emissions by 720 million tonnes over 25 years, and generate around 1,700,000 direct jobs in manufacturing, installation and maintenance.
The government estimates annual savings of ₹75,000 crore in electricity costs upon full implementation. The program also supports the “Make in India” initiative by mandating the use of domestically produced solar modules and components.
“The scheme is driving India’s clean energy transition while strengthening local manufacturing and job creation,” said an MNRE official.
Sustained Monitoring and Expansion
The Department of Financial Services, in coordination with MNRE, regularly reviews loan progress with state-level bankers’ committees and lead district managers. This ongoing monitoring ensures effective implementation, wider outreach, and faster adoption.
With new credit enhancements and simplified processes, the PM Surya Ghar: Muft Bijli Yojana is poised to maintain its momentum as India scales up toward its 2027 goal of one crore solar-powered homes, reinforcing its global leadership in renewable energy.
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