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POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Empowering Households with Subsidies and Incentives

The scheme, implemented by the Ministry of New and Renewable Energy (MNRE) has received 47.3 lakh
applications. 6.13 lakh beneficiaries have successfully received subsidies, amounting to ? 4,770 crore.
With a fully automated application, vendor selection and subsidy redeem process subsidies get credited
to applicants’ bank accounts within 15 days.

Under Prime Minister Shri Narendra Modi's leadership, a key feature of the PM Surya Ghar: Muft Bijli
Yojana is the provision of collateral-free loans through 12 Public Sector Banks (PSBs) at a subsidized
interest rate of 6.75% for loans up to Rs. 2 lakhs, making rooftop solar installations more accessible to
the masses. With the easy loan facility, a 3 KW rooftop solar system could be installed with an
investment as low as ?15,000/- giving returns up to ?15 lakh in 25 years. Loan application process is also
fully automated and online. So far, 3.10 lakh loan applications have been received, with 1.58 lakh loans
sanctioned and 1.28 lakh disbursed, ensuring wider accessibility for potential beneficiaries. Beneficiaries
receive subsidy of upto ?78000 for upto 3KW rooftop solar system, significantly reducing installation
costs.

Remarkable Progress Across Several States

The scheme has seen remarkable progress across several states. Notably, Chandigarh and Daman & Diu
have achieved 100% of their government building rooftop solar targets, leading the nation in clean
energy adoption. States like Rajasthan, Maharashtra, Gujarat, and Tamil Nadu are also performing
exceptionally well, contributing significantly to the overall installation figures. The Government is
actively monitoring the progress across all states to ensure the smooth and timely execution of the
scheme, with the goal of reaching 1 crore households by 2026-27.

Driving India’s Rooftop Solar Sector

The scheme has a total outlay of ?75,021 crore. To facilitate easy financing, Union Minister of New and
Renewable Energy Shri Pralhad Joshi recently held a meeting with top bankers at National Workshop on
Mobilizing Finance for Renewable Energy in Mumbai, urging them to ensure the hassle-free
disbursement of loans under the scheme. The discussions led to several key takeaways to unlock access
to finance, including the need for lower-cost financing, innovative financing models, improved access to
global climate funds, and enhanced risk-sharing mechanisms for new technologies. The meeting also
underscored the importance of strengthening public-private partnerships and expanding green financial
instruments to support India’s clean energy transition.

The Government is also extending the rooftop solar initiative to public infrastructure, promoting the
installation of solar systems on Government buildings. This effort not only reduces operational energy
costs but also serves as a model for the commercial and industrial sectors, encouraging a broader
adoption of solar power across the country.

Under the leadership of Prime Minister Shri Narendra Modi, aligned with the Aatmanirbhar Bharat
initiative, the PM Surya Ghar: Muft Bijli Yojana supports domestic manufacturing by mandating the use
of solar modules and cells produced in India. As of 10th March 2025, the scheme has facilitated the

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