Union Budget 2025-26 has increased financial support for the PM Surya Ghar scheme

Why in the News?

The Union Budget 2025 has significantly increased the allocation for the PM Surya Ghar Muft Bijli Yojana (SGMBY) to ₹20,000 crore, up from ₹11,100 crore in the FY25 Revised Estimates (RE) and ₹6,250 crore in the FY25 Budget Estimates (BE).

About PM Surya Ghar Muft Bijli Yojana:

• It is a flagship initiative launched by Prime Minister on February 15, 2024, under the Ministry of New and Renewable Energy (MNRE).
• It aims to provide free electricity up to 300 units per month by facilitating the installation of rooftop solar panels in 1 crore households across India.
• The scheme has a budget outlay of ₹75,021 crore and is planned for implementation until FY 2026-27.
• The initiative is part of India’s clean energy transition, reducing dependency on fossil fuels and promoting sustainable energy solutions.
• Key Features:
  • 40% subsidy on installation costs through Central Financial Assistance (CFA).

1. 1. 1. 1 kilowatt: 30,000 rupees
      2. 2 kilowatts: 60,000 rupees
      3. 3 kilowatts: 48,000 rupees
      4. 3 kilowatts or more: 78,000 rupees

• • National Programme Implementation Agency (NPIA) at the national level and State Implementation Agencies (SIAs) at the state level.
  • Two Solar Installation Models:

1. 1. 1. RESCO Model – Third-party ownership, with consumers paying only for electricity used.
      2. Utility-Led Aggregation (ULA) Model – DISCOMs or state agencies install solar panels for households.

• • Model Solar Village: ₹1 crore incentive for the top-performing village in each district.
  • Payment Security Mechanism (PSM): ₹100 crore fund to encourage private investment in solar energy.

Significance

• Reduces Electricity Bills: Households can save ₹15,000 to ₹1,80,000 annually.
• Boosts Renewable Energy: Helps achieve 40 GW of rooftop solar capacity, bridging the gap from 10.4 GW (as of November 2023).
• Strengthens Energy Security: Expands access to sustainable and decentralized power.
• Environmental Impact: Reduces carbon emissions and reliance on fossil fuels.
• Empowers Rural India: 50% of projects are expected in Tier-2 and Tier-3 cities, promoting economic growth and electrification.