Solar Revolution in India

Context:

PM Surya Ghar Free Bijli Yojana completes one year on February 13, 2025. Also, India has achieved a historic milestone by crossing 100 GW of installed solar power capacity, thereby strengthening India’s position as a global leader in renewable energy.

Solar Revolution in India:

• India’s installed capacity in the solar power sector has grown from 2.82 GW in 2014 to 100 GW in 2025.
• As of January 31, 2025, India’s total installed solar capacity is 100.33 GW.
• The total capacity of solar and hybrid projects in the country is 296.59 GW.
• Solar energy contributes 47% to India's renewable energy.

About PM Surya Ghar Free Electricity Scheme:

• Start: 13 February 2024
• Objective: To provide free electricity to homes by facilitating installation of solar panels on the roof.
• Target: To supply solar energy to one crore homes by March 2027
• Work done so far: As of January 27, 2025, this scheme has benefited 8.46 lakh families through installation of solar energy on the roof.
  • It is expected to reach 10 lakh families by March 2025, 20 lakh by October 2025, 40 lakh by March 2026.
• Features:
  • This scheme provides subsidy of up to 40%.
  • So far, Rs 4,308.66 crore has been disbursed as central financial assistance to 5.54 lakh residential consumers, with an average subsidy of Rs 77,800 per household.
  • Additionally, an estimated 45% of beneficiaries are now receiving zero electricity bills based on their solar power generation and consumption pattern.

• • Top 5 states with the highest number of households benefited under the scheme:

Subsidy Details:

• The subsidy provided under the scheme varies based on the average monthly electricity consumption of the household and the corresponding appropriate rooftop solar plant capacity:

• Collateral-free loans: Households get access to collateral-free, low-interest loans at around 7% interest for installation of residential rooftop solar systems up to 3 kW.

Eligibility:

• Households must be Indian citizens.
• The household should have a house with a rooftop suitable for installing solar panels.
• The household should have a valid electricity connection.
• The household should not have availed any other subsidy for solar panels.

Key Benefits

• Free electricity available to households
• Government saves an estimated Rs 75,000 crore annually in power costs
• Increases the use of renewable energy
• Strengthens India's commitment to reducing carbon emissions

Impacts of the scheme:

• Household savings and income generation: Households will benefit from significant savings on their electricity bills. There will be an opportunity to earn additional income by selling surplus power produced by rooftop solar systems to electricity distribution companies.
  • For example, a 3-kW system can generate over 300 units per month on average, providing a reliable source of potential revenue.
• Addition of Solar Capacity: The scheme is expected to add 30 GW of solar capacity through installation of rooftop solar power plants in the residential sector, which will significantly contribute to India’s renewable energy targets.
• Environmental Benefits: Over the 25-year lifetime of these rooftop systems, it is estimated that the scheme will generate 1000 billion units of electricity, reduce CO2 emissions by 720 million tonnes, thereby having a substantial positive impact on the environment.
• Employment Generation: The scheme is expected to generate around 17 lakh direct jobs across various sectors including manufacturing, logistics, supply chain, sales, installation, operations and maintenance, and other services, thereby boosting employment and economic growth in the country.

Establishment of Model Solar Village

• Under the Model Solar Village component of the scheme, the focus is on setting up one model solar village in each district across India.
  • The initiative aims to promote solar energy adoption and empower rural communities to achieve energy self-sufficiency.
• ₹800 crore has been allocated for this component, with ₹1 crore provided to each selected model solar village.

Conclusion:

In conclusion, the PM Surya Ghar Free Electricity Scheme is set to significantly reshape India’s energy landscape by empowering millions of households with solar energy. The initiative will save the government ₹75,000 crore annually in power costs, thereby strengthening India’s leadership in clean energy innovation.