Thursday, 11 Sep, 2025
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The rooftop solar adoption under PMSGMBY remains concentrated, with Gujarat (41.47%) and Maharashtra (22.79%) making up 64.26% of installations, exposing regional disparities despite the scheme’s expansion
India’s ambitious PM Surya Ghar: Muft Bijli Yojana (PMSGMBY) has crossed a major milestone, with 1o lakh households now running on solar power as of March 10. Launched in February 2024, the world’s largest domestic rooftop solar programme is rapidly reshaping the country’s energy mix.
With 47.3 lakh applications received, the government has disbursed Rs 4,770 crore in subsidies to 613,000 beneficiaries, making solar adoption more affordable. Easy financing—offering collateral-free loans of up to Rs 2 lakh at 6.75 per cent interest via 12 state-run banks—has further spurred demand, with 310,000 loan applications, of which 158,000 have been sanctioned and 128,000 disbursed.
The scheme’s efficiency—ensuring subsidy transfers within 15 days—has translated into zero electricity bills for many recipients, enhancing both household savings and energy security. Each solar installation offsets carbon emissions equivalent to planting 100 trees, reinforcing India’s green ambitions. As deployment scales up, PMSGMBY will be a critical pillar in India’s journey toward energy self-reliance.
The scheme aims to equip 1 crore homes with solar power by January 2027, but progress is lagging. As of January 2025, only 8.46 per cent of the target had been met, according to government data. With an average installation rate of 70,000 per month, the initiative is well short of its required pace. At the current trajectory, just 26.8 lakh households—26.89 per cent of the target—will have solar power by the deadline.
The PMSGMBY is expanding, but its adoption remains highly skewed. Gujarat and Maharashtra alone account for 64.26 per cent of total rooftop solar installations, with Gujarat leading at 41.47 per cent and Maharashtra contributing 22.79 per cent.
In contrast, the next three states—Uttar Pradesh (8.69 per cent), Kerala (7.73 per cent), and Rajasthan (3.14 per cent)—collectively make up just 19.56 per cent of the total. The rest of the country lags significantly, with all other states combined representing only one-sixth of installations.
For the scheme to meet its 1 crore on-home target by 2027, the Centre may need to address disparities in adoption rates and ensure wider regional participation. Beyond cutting electricity costs, the programme is driving energy self-reliance and sustainability, reinforcing India’s clean energy ambitions. However, with regional disparities and installation rates falling short, scaling up deployment remains critical to realising its full impact.
Money isn’t the problem for the PMSGMBY. The government has nearly doubled its 2024-25 budget for the scheme to Rs 11,100 crore and set aside Rs 20,000 crore for 2025-26. The roadmap is clear: 40 lakh installations by March 2026 and 1 crore by January 2027. But with the current pace lagging, a major acceleration is needed.
Generous subsidies—60 per cent for 2 kW systems, 40 per cent for up to 3 kW—and streamlined financing make adoption more affordable, while net metering allows households to sell excess power back to the grid. A simplified online application process aims to ease bureaucratic hurdles. Yet, with adoption heavily concentrated in a few states, awareness and outreach will be critical to ensuring the scheme meets its ambitious goals.
Distribution companies (discoms) are the backbone of the scheme, serving as state implementation agencies (SIAs) responsible for net meter availability, inspections, and timely commissioning of rooftop solar systems. Their efficiency will directly impact the programme’s success.
