Surya Ghar: Empowering India with Free Electricity

GW, illustrating the impact of the Surya Ghar initiative in empowering Indian households with free electricity.
Surya Ghar: Empowering India with Free Electricity

In February 2024, Prime Minister Narendra Modi introduced a groundbreaking initiative known as the 'PM Surya Ghar: Muft Bijli Yojana,' aimed at catalyzing the widespread adoption of rooftop solar panels in Indian households through a series of financial incentives.

The inception of this program was initially announced by Finance Minister Nirmala Sitharaman during her interim budget speech on February 1.


The primary objective of the initiative is to facilitate the installation of solar photovoltaic systems on one crore homes in the forthcoming years. This strategic move not only propels India towards enhanced renewable energy utilization but also alleviates the burden of monthly electricity expenses for ordinary citizens.

Key Benefits for Households:

  • Capital Subsidy: Under this scheme, the central government pledges to provide a generous upfront 40% subsidy on the purchase and installation costs of rooftop solar equipment, disbursed directly into the beneficiaries' bank accounts.
  • Electricity Bill Savings: Participating households stand to benefit from substantial savings on their monthly electricity bills, with potential savings of up to ₹300, contingent upon the system's ability to fully offset overheads.
  • Streamlined Grid Connection: The convoluted procedures associated with connecting rooftop systems to the nearest electricity distribution company grids have been significantly simplified, ensuring a smoother transition for participants.
  • Monetization for Local Bodies: To encourage community involvement, urban and rural local governing bodies facilitating rooftop solar installations under the scheme will also receive monetary incentives and commendations from the government.

Understanding Grid Connected Rooftop Solar PV System:

A grid-connected rooftop solar PV system harnesses the DC power generated from solar panels and converts it into AC power through a power conditioning unit/inverter, subsequently feeding it into the grid.

Advantages of Grid-Connected Rooftop Solar System:

  • Savings on Electricity Bills: Consumers enjoy reduced electricity bills.
  • Efficient Utilization of Roof Space: No additional land is required, maximizing the use of available rooftop space.
  • Short Implementation Time: These systems have a low gestation period.
  • Minimal Infrastructure Requirements: No additional transmission and distribution (T&D) lines are necessary.
  • Reduced T&D Losses: Collocated power consumption and generation mitigate transmission and distribution losses.
  • Environmental Benefits: Lower carbon emissions contribute to long-term energy and ecological security.
  • Grid Management: Better management of daytime peak loads benefits DISCOM/utilities.
  • Meeting Renewable Purchase Obligations (RPOs): Obligated entities fulfill their renewable energy obligations effectively.

Prime Minister Narendra Modi inaugurated the National Portal for Rooftop Solar in July 2022, setting the stage for enhanced solar adoption across the nation.

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