Delhi Government Approves State Subsidy Under Pm Surya Ghar: Muft Bijli Yojana

Delhi Government Approves State Subsidy Under Pm Surya Ghar: Muft Bijli Yojana

23-05-2025
  1. The Delhi Government announced a major rooftop solar subsidy scheme on 20 May 2025.
    1. PM Surya Ghar Muft Bijli Yojana is also known as Rooftop Solar Scheme.
  2. The announcement was made during a cabinet meeting chaired by the Chief Minister.
  3. The aim of the scheme is to promote clean and affordable solar energy for domestic households in the city.
  4. Under this new initiative, residents who install rooftop solar panels will be eligible to receive a total subsidy of up to ₹1,08,000.

Subsidy Structure

Source

Amount

Conditions

Central Government Subsidy

₹78,000

For installations up to 3 kW

Delhi Government 'Top-Up' Subsidy

₹30,000

Under Free Electricity Scheme

  1. Total Subsidy per Household: Up to ₹1,08,000
  2. Revised State Subsidy: Standardized at ₹10,000 per kW (earlier: ₹2,000–₹10,000)
  3. Budget Allocation: ₹50 crore
  4. Target Installations: 2,30,000 households in the next 3 years

 

Potential Consumer Benefits

  1. Households may save up to ₹4,200/month on electricity bills (as per government estimates).
  2. Access to easy loans via partnerships with financial institutions.
  3. Reduced dependence on grid electricity and lowered carbon footprint.


Delhi Solar Policy 2023 – Amendment

  1. Policy update allows higher state subsidies for rooftop solar installations.
  2. Introduced direct benefit transfer model to simplify access.
  3. Monthly subsidy limit raised to ₹30,000 under revised scheme.
  4. The scheme aligns with Delhi’s vision for clean energy transition and aims to reduce household energy costs significantly.


What is PM Surya Ghar: Muft Bijli Yojana – 2025

  1. PM Surya Ghar Muft Bijli Yojana is a centrally sponsored scheme.
  2. This means the scheme is funded and implemented by the central government, but states or UTs may be involved in its implementation.
  3. It was Launched on 13 February 2024
  4. The scheme focuses on installing solar panels on the roofs of residential buildings to generate electricity.
  5. The scheme provides subsidies or financial incentives to households to help them afford the cost of installing rooftop solar systems.
  6. Launched By: Prime Minister Shri Narendra Modi
  7. Ministry: Ministry of New and Renewable Energy (MNRE)
  8. Achievement as of 2025:
    • 10 lakh households now solar-powered
    • 47.3 lakh applications received
    • ₹4,770 crore subsidies disbursed to 6.13 lakh beneficiaries


Objectives

  1. Provide 300 units of free electricity per month to 1 crore households
  2. Reduce household energy bills
  3. Cut government expenditure (estimated ₹75,000 crore annual saving)
  4. Increase renewable energy share
  5. Lower carbon emissions
  6. Strengthen energy independence and align with Aatmanirbhar Bharat


Financial Benefits : Subsidies Based on Consumption:

Avg. Monthly Consumption

Capacity

Subsidy Amount

0–150 units

1–2 kW

₹30,000 – ₹60,000

150–300 units

2–3 kW

₹60,000 – ₹78,000

>300 units

>3 kW

₹78,000

  1. Collateral-Free Loans:
    • Up to ₹2 lakh
    • 6.75% subsidized interest via 12 Public Sector Banks
    • 3.10 lakh applications; 1.58 lakh sanctioned; 1.28 lakh disbursed


State-wise Progress

  1. 100% Target Achievement (Govt Buildings): Chandigarh, Daman & Diu
  2. High Performance: Rajasthan, Maharashtra, Gujarat, Tamil Nadu
  3. Regular monitoring ensures timely and efficient execution


Model Solar Village Scheme

  1. One Model Solar Village per district
  2. ₹800 crore allocation (₹1 crore per village)
  3. Eligibility:
    • Revenue village
    • Population: >5,000 (or >2,000 in special category states)
  4. Selection based on:
    • Renewable energy (RE) capacity after 6 months
  5. Implementation via:
    • State Renewable Energy Development Agencies
    • Supervision by District Level Committees (DLCs)


Impact & Benefits

Household-Level Impact

  1. Zero electricity bills for many
  2. Extra income by selling surplus power to DISCOMs
  3. A 3-kW system can generate 300+ units/month

Environmental Gains

  1. Each system offsets carbon equal to 100 trees
  2. Over 25 years:
    • 1,000 Billion Units of electricity generated
    • 720 million tonnes CO₂ emissions avoided

Economic Impact

  1. Adds 30 GW solar capacity in residential sector by 2027
  2. Expected to create 17 lakh jobs:
    • Manufacturing
    • Logistics
    • Sales & O&M
    • Solar installation services

Support for Domestic Industry

  1. Mandates Made-in-India solar modules and cells
  2. Drives production of:
    • Inverters
    • Balance of Plant (BoP) components
  3. Strengthens Make in India & energy security

Challenges

  1. Uptake vs Target: 10 lakh installations vs 1 crore target
  2. Infrastructure Readiness: Grid integration still needed
  3. Public Awareness: Urban–rural adoption gap
  4. DISCOM delays: Execution bottlenecks

 

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Delhi Government Approves State Subsidy Under Pm Surya Ghar: Muft Bijli Yojana