PM Surya Ghar achieves 5 million rooftop solar installations
The PM Surya Ghar: Muft Bijli Yojana crossed 5 million (50 lakh) rooftop solar installations nationally
The pace of installation rose sharply, from about 5,038 installations a day in October 2025 to nearly 16,328 installations a day in July 2026
The acceleration reflects roughly a 3.2-fold increase in daily installation rate over a nine-month period
The scheme's growth is attributed to simplified digital application processing, faster subsidy disbursal, and DISCOM-integrated net metering approvals
Net Metering — The Mechanism Behind Rooftop Solar Economics
Net metering is the billing arrangement that makes household rooftop solar financially viable at scale. A bi-directional meter records both electricity drawn from the grid and surplus solar power exported to it, and the consumer's bill reflects only the net difference between the two.
Key Details
- The Electricity (Rights of Consumers) Rules, 2020 (issued under the Electricity Act, 2003) permit net metering for rooftop solar systems up to 10 kW, and mandate gross metering (where all generated power is exported and paid for at a separate feed-in tariff) for larger systems, though states retain some discretion on thresholds
- Under net metering, consumers typically recover their installation cost in about 4–6 years, since they save directly on the retail tariff they would otherwise pay
- Under gross metering, recovery depends entirely on the DISCOM's feed-in tariff, which is usually lower than the retail purchase tariff, making net metering more attractive for small residential systems
- Net metering reduces DISCOM revenue on high-paying residential consumers, which has made some state utilities cautious about rapid net-metered rooftop expansion
PM Surya Ghar's accelerating installation pace runs directly through DISCOM-processed net metering approvals; delays or resistance at the DISCOM level have historically been the biggest bottleneck for rooftop solar in India, which the scheme's portal-based, time-bound clearance process was designed to overcome.
PM Surya Ghar vs PM-KUSUM — Two Distinct Solar Subsidy Architectures
UPSC aspirants should distinguish between India's two major solar subsidy schemes, which target different beneficiaries and different points in the power system.
Key Details
- PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan), launched March 2019, targets the agricultural sector through three components: Component A (decentralised ground-mounted solar plants, farmers/cooperatives/FPOs as developers), Component B (standalone off-grid solar irrigation pumps), and Component C (solarising existing grid-connected agricultural pumps)
- PM Surya Ghar: Muft Bijli Yojana, launched February 13, 2024, targets residential rooftop solar for households, with a total outlay of Rs 75,021 crore aimed at 1 crore (10 million) households and roughly 30 GW of rooftop capacity by FY2027
- PM-KUSUM's subsidy model centres on capital subsidy plus institutional financing for farmers; PM Surya Ghar centres on Central Financial Assistance (CFA) of Rs 30,000/kW for the first 2 kW and Rs 18,000/kW for the third kW, capped at Rs 78,000, paid via Direct Benefit Transfer
- Both fall under the Ministry of New and Renewable Energy (MNRE), but PM-KUSUM addresses agricultural energy security and diesel-pump replacement, while PM Surya Ghar addresses urban/residential grid demand and household electricity costs
The 5-million milestone is specific to PM Surya Ghar's residential rooftop segment; it should not be conflated with PM-KUSUM's separate agricultural solar targets, a distinction UPSC prelims questions frequently test through scheme-matching formats.
Distributed Renewable Energy (DRE) and India's Non-Fossil Capacity Target
Rooftop solar is classified as Distributed Renewable Energy (DRE) — power generated close to the point of consumption — distinct from utility-scale or ground-mounted solar parks, which feed large volumes of power into the grid from centralised locations.
Key Details
- India's revised NDC target (approved March 2026) commits to 60% cumulative non-fossil electric installed capacity by 2035, up from the earlier 50%-by-2030 target under the 2022 updated NDC; India had already crossed roughly 52.57% non-fossil capacity by February 2026
- DRE reduces transmission and distribution (T&D) losses compared to power drawn from distant utility-scale plants, since generation and consumption are co-located
- Rooftop solar has historically lagged utility-scale solar in India due to high per-household transaction costs, fragmented DISCOM processes, and slower net-metering approvals — the specific gap PM Surya Ghar's digital, DBT-based model was designed to close
The scheme's installation surge is a direct policy instrument for closing the historical DRE gap and contributing to India's non-fossil capacity target, alongside utility-scale solar parks and wind capacity additions.
- PM Surya Ghar launched: February 13, 2024; nodal ministry: MNRE; total outlay Rs 75,021 crore; target: 1 crore households / ~30 GW rooftop capacity by FY2027
- Installation pace: ~5,038/day (October 2025) rising to ~16,328/day (July 2026) — about 3.2x acceleration
- CFA subsidy: Rs 30,000/kW (first 2 kW) + Rs 18,000/kW (3rd kW), capped at Rs 78,000, disbursed via Direct Benefit Transfer
- Net metering threshold under central rules: up to 10 kW (Electricity (Rights of Consumers) Rules, 2020); gross metering applies above this in most states
- PM-KUSUM (launched March 2019): targets 10,000 MW decentralised solar plants (Component A), 14 lakh standalone solar pumps (Component B), solarisation of 35 lakh grid-connected agri pumps (Component C)
- India's non-fossil capacity target: 60% by 2035 (updated NDC, approved March 2026); ~52.57% already achieved by February 2026