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.

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