PM Surya Ghar Muft Bijli Yojana: Free Electricity & Extra Income For Households
Updated: 12-03-2025 at 3:32 PM
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The Indian government is pushing for a faster switch to solar energy with the introduction of “Pradhan Mantri Surya Ghar Muft Bijli Yojana.” This scheme not only wipes out electricity expenses but enables households to earn additional income by monetizing surplus solar energy.
Minister Pralhad Joshi announced in Rajya Sabha that the scheme comes with grants and other forms of funding to bring solar power within reach of a larger section of the population. Due to the government’s aggressive approach to renewable energy implementation, solar power production has already crossed 70 gigawatts and is expected to reach 100 shortly.
Read More: Surya Ghar Muft Bijli Yojana: A Step towards Green and Clean Rural India
Key Highlights
| Feature | Details |
|---|---|
| Free Electricity & Earnings | Households will get free electricity and earn ₹1,265 per month. |
| Subsidy Amount | ₹30,000 per kilowatt, up to ₹78,000 for 3 kilowatts. |
| Financial Assistance | Bank loans available for covering installation costs. |
| Loan EMI | ₹610 per month if the entire amount is borrowed. |
| Additional Subsidy | 10% extra subsidy for northeastern states. |
| Scheme Progress | Over 10 lakh installations have been completed since the launch. |
| India's Renewable Energy Rank | India is now the third-largest producer of renewable energy globally. |
How Does The Scheme Work?
Each household is entitled to install solar panels on their rooftop under the PM Surya Ghar Muft Bijli Yojana Scheme, and the government also pays subsidies to ease cost implications, which makes using solar energy cheaper.
Financial Breakdown for Households
| Installation Capacity | Subsidy Provided | Cost After Subsidy | Estimated Savings & Earnings |
|---|---|---|---|
| 1 kW | ₹30,000 | ₹80,000 - ₹85,000 | ₹1,875/month savings + ₹1,265 income |
| 2 kW | ₹60,000 | ₹1,60,000 - ₹1,70,000 | Higher earnings & savings |
| 3 kW | ₹78,000 | ₹2,40,000 - ₹2,55,000 | Maximum benefits under subsidy |
If a family avails a loan to pay the remaining installation cost, then they would be paying an EMI of ₹610 a month while still saving on electricity bills to the tune of ₹1,875 and earning an additional income of ₹1,265 from selling surplus electricity.
Growth of Renewable Energy In India
Renewable energy in India is undergoing a remarkable change, with solar energy taking the front and center stage. Looking back from where we started to now being a leading producer, here is the growth story.
Rising Solar Energy Production
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Back in 2014, India’s solar power production was last to even show up on the graph.
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Now, solar energy production in India has exceeded 70 Gigawatts and is set to cross 100 shortly.
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The country’s total energy capacity excluding fossil fuels has increased from 75 Gigawatts in 2014 to a whopping 222 Gigawatts.
Declining Solar Power Costs
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In 2011, units of solar power cost ₹11 each.
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Recently, the government of Madhya Pradesh accepted a bid for 2.5, marking a radical change.
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India as a whole has eclipsed rates of ₹3, making the cost of solar energy competitive and affordable.
Read More: PM Surya Ghar Yojana: A Bright Sword
Mandatory Renewable Energy Purchase From 2026
The government is making renewable energy compulsory for distribution companies. Companies that do not procure electricity from non-fossil fuel energy sources will face fines starting in 2026. This will increase the consumption of solar energy and make the usage of household solar power even more profitable.
Challenges In Implementation
Some states are putting the scheme into action, while others, such as West Bengal, are behind in offering the necessary infrastructure needed for proper installations. The government is calling on states to begin facilitating the use of renewable energy so this scheme can be successful throughout the country.
Conclusion
The PM Surya Ghar Muft Bijli Yojana was created to provide households with energy independence while minimizing electricity expenses. Removing the electricity bill effectively grants a household extra income, which will be greatly beneficial while simultaneously pushing forward the transition towards greener energy.
This initiative will surely enable millions of households to access solar power and further enhance India’s renewable energy sector. So far, over 10 lakh installations have already been completed. All those looking to benefit from the scheme are encouraged to apply for subsidies, start saving on electricity bills, and further aid India’s green energy revolution.
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