Installation: The vendor installs the solar panels.
Net Metering & Subsidy: After installation, the DISCOM will set up net metering. Once verified, the subsidy is credited to your bank account.
Loan Support for Solar Panels
The government also offers collateral-free loans at an interest rate of about 7% for systems up to 3 kW. This makes rooftop solar affordable for families who cannot pay the full cost upfront. The loan terms are designed to be repaid through the savings on electricity bills.
Scheme Targets and Achievements
The PM Surya Ghar Yojana is not just a plan; it is already a success story. The government initially set a target of covering 40 lakh households by March 2026. This target was achieved well ahead of schedule, with the milestone being crossed in May 2026. The government has now set a target of covering 1 crore households by the end of 2026-27.
The pace of adoption has been remarkable. As of 19 March 2026, over 26.19 lakh rooftop solar systems had been installed. As of 29 May 2026, over 40 lakh families have been connected to solar energy.
Top Performing States
The adoption of rooftop solar under the scheme has been widespread, but some states have shown particularly strong participation. As of the end of 2025, the top five states for implementation were:
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Gujarat
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Maharashtra
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Uttar Pradesh
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Kerala
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Rajasthan
Funding and Budget Support
The scheme has received substantial budgetary support from the government, reflecting its high priority. In the Union Budget 2026-27, Finance Minister Nirmala Sitharaman allocated ₹22,000 crore to the scheme. This represents a 29.4% increase from the previous year's revised estimate of ₹17,000 crore. The scheme recorded actual expenditure of ₹7,818 crore in 2024-25. As of 5 March 2026, funds amounting to ₹14,585.29 crore had been utilised in FY26.
Impact on Energy and Environment
The shift to solar power is not just about saving money; it is about saving the planet. The government estimates that installing rooftop solar systems in one crore households could:
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Produce renewable electricity of 1,000 billion units
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Reduce emissions by 720 million tonnes of carbon dioxide over the 25-year lifetime of the systems
Additionally, the scheme is expected to result in annual savings of around ₹75,000 crore for the government in electricity costs.
Benefits for Homeowners
The benefits of this scheme for a typical Indian homeowner are clear.
Reduction in Electricity Bills: By generating your own power, you dramatically lower what you pay the power company. Surplus electricity can be
Month: Current Affairs - May 30, 2026
Category: PMSuryaGharMuftBijliYojana