Rooftop Solar Scheme 2.0/PM Surya Ghar Muft Bijli Yojana Objectives, Benefits

The Government of India is promoting renewable energy and reducing electricity costs for households through the Rooftop Solar Scheme 2.0, officially known as PM Surya Ghar: Muft Bijli Yojana. The scheme was mainly launched on 15th February 2024, this initiative was introduces to install rooftop solar panels in 1 crore households across India. It provides free electricity, encourages clean energy, and supports households financially with subsidies and loans. In this blog, we have provided all the details about the Rooftop Solar Scheme 2.0/PM Surya Ghar Muft Bijli Yojana.

What is the Rooftop Solar Scheme 2.0?

The Rooftop Solar Scheme 2.0 is a government initiative aimed at installing solar panels on household rooftops. Its main goal is to provide up to 300 units of free electricity per month to eligible households. This reduces electricity bills and promotes the use of renewable energy. The scheme is also known as PM Surya Ghar: Muft Bijli Yojana.

The scheme has a total budget of ₹75,021 crore and will be implemented until FY 2026-27. It is managed nationally by the National Programme Implementation Agency (NPIA) and at the state level by Distribution Utilities (DISCOMs) or the State Energy Departments.

Check out all about the Government Schemes

How does the PM Surya Ghar Muft Bijli Yojana work?

The scheme provides subsidies and financial support to households to install rooftop solar panels. The subsidy depends on the capacity of the solar system. Under the latest 2025 update, homeowners can get financial support to install solar panels on their roofs.

  • If your solar system is up to 3 kW, you can get a 40% subsidy.
  • If your system is between 3 kW and 10 kW, you can get a 20% subsidy.

The best part is that the subsidy is sent directly to consumer bank account after the solar panels are installed and verified. This makes it easier, faster, and more transparent for households to switch to clean, renewable energy and save money on electricity bills.

Who is eligible to apply for the scheme?

The scheme is designed for Indian households that meet the following criteria:

  • Must be an Indian citizen.
  • Must own a house with a roof suitable for solar panel installation.
  • Must have a valid electricity connection.
  • Must not have availed any other solar subsidy.

What are the benefits of the Rooftop Solar Scheme 2.0?

The scheme provides multiple benefits for households and the environment:

  • Free electricity: Up to 300 units per month, reducing monthly electricity bills.
  • Subsidy support: Reduces installation costs significantly.
  • Low-interest loans: Helps households invest in renewable energy without financial burden.
  • Surplus income: Sell extra electricity to DISCOMs.
  • Environmental impact: Reduces carbon footprint and promotes clean energy usage.
  • Government savings: Reduces the cost of providing electricity nationally.

What rooftop solar system is suitable for households?

The suitable capacity depends on monthly electricity consumption:

Monthly Electricity Consumption (Units)Suitable Plant CapacitySubsidy Support
0–1501–2 kW₹30,000–₹60,000
150–3002–3 kW₹60,000–₹78,000
Above 300Above 3 kWMaximum ₹78,000

How does the scheme promote clean energy?

The Rooftop Solar Scheme 2.0 supports India’s renewable energy targets. By encouraging households to install solar panels, it reduces dependency on fossil fuels and lowers CO2 emissions. It also helps the government achieve its goal of increasing solar rooftop capacity and promoting sustainable energy development.

What is the financial impact of the scheme?

The scheme is estimated to save the government approximately ₹75,000 crore per year in electricity costs. Households also save on monthly bills while generating additional income from surplus electricity. The financial incentives make rooftop solar an attractive option for homeowners.

The Rooftop Solar Scheme 2.0 (PM Surya Ghar Muft Bijli Yojana) is a significant step toward affordable electricity and sustainable energy in India. With subsidies, loans, and incentives, it empowers households to generate their own electricity, save money, and contribute to a cleaner environment.

FAQs

Q1. When was the Rooftop Solar Scheme 2.0 launched?

The scheme was launched on 15th February 2024.

Q2. What is the official name of the scheme?

The official name is PM Surya Ghar Muft Bijli Yojana.

Q3. What is the maximum free electricity provided under the scheme?

Eligible households can receive up to 300 units per month.

Q4. Who implements the scheme at the state level?

DISCOMs or State Energy Departments act as State Implementation Agencies (SIAs).

Q5. Does the scheme support household income generation?

Yes, households can earn by selling surplus electricity to the grid, creating an additional income source.


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