Union Budget 2025 Increased Allocation for PM Surya Ghar Muft Bijli Yojana

Union Budget 2025 Increased Allocation for PM Surya Ghar Muft Bijli Yojana by 80% to 20,000 crore.

About PM Surya Ghar Muft Bijli Yojana

PM Surya Ghar Muft Bijli Yojana is an ambitious scheme launched by the Government of India in the 2024-25 Union Budget. The program is aimed at providing solar power solutions to households across India by installing rooftop solar plants. It will benefit about 1 crore households by offering them 300 units of free electricity every month. With a massive investment of over ₹75,000 crore, it is set to become the world’s largest domestic rooftop solar initiative, marking a significant shift in India's energy landscape.

Key Highlights:

1. Launched: In 2024-25 Union Budget
2. Objective: To install rooftop solar systems (RTS) for 1 crore households, providing up to 300 free electricity units per month.
3. Timeline: To be implemented till FY 2026-27
4. Ministry Responsible: Ministry of New and Renewable Energy (MNRE)
5. Allocation for FY 2025: The scheme received an 80% increase in allocation, bringing the total to ₹20,000 crore.
6. According to ministry, as of January 27, 2025 a total of 8.46 lakh households have benefitted through the installation of rooftop solar plants.

Scheme Components:

1. Model Solar Village: The program will establish a Model Solar Village in each district across India. This initiative is designed to create a replicable model of solar energy deployment in rural and urban areas.
2. Innovative Projects: Includes the development of unique and region-specific solar energy solutions to promote renewable energy adoption.

Subsidy & Financial Assistance:

1. Subsidy Support: The scheme offers a subsidy of up to 40% for households, based on their average monthly electricity consumption.
2. Collateral-Free Loans: Households can access low-interest, collateral-free loans at about 7% interest to install rooftop solar systems with a capacity of up to 3 kW.

Subsidy Breakdown (based on average monthly electricity consumption):

Average Monthly Power Consumption (Units)	Suitable Rooftop Solar Plant Capacity (kW)	Subsidy Support (₹)
0 - 150	1 - 2	₹30,000 to ₹60,000
150 - 300	2 - 3	₹60,000 to ₹78,000
>300	Above 3	₹78,000

Key Benefits:

1. Government Savings: The scheme is expected to save ₹75,000 crore annually in electricity costs.
2. Cost Reduction for Households: Significantly reduces energy costs for participating households by providing free electricity up to 300 units every month.
3. Renewable Energy Promotion: Helps boost the adoption of renewable energy in India, contributing to the country's sustainability and reducing its carbon footprint.
4. Job Creation: The large-scale rollout of solar systems will lead to the creation of numerous jobs in the renewable energy sector.
5. Energy Independence: The initiative contributes to India’s goal of reducing dependency on fossil fuels and transitioning to a greener energy future.

The PM Surya Ghar Muft Bijli Yojana stands as a monumental step toward promoting renewable energy, supporting households, and contributing to India's carbon reduction goals. With substantial financial backing and a focus on sustainability, the scheme promises to transform the energy landscape of the nation while significantly benefiting both the environment and households across India.

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