- Significant Fund Increase: Allocation for the PM Surya Ghar Muft Bijli Yojana is now ₹20,000 crore.
- Free Electricity Initiative: Aims to provide free electricity by installing rooftop solar panels.
- Beneficial Impact: Expected to save beneficiaries between ₹15,000 to ₹1,80,000 annually.
The recent Union Budget 2025 has made a groundbreaking allocation increase for the PM Surya Ghar Muft Bijli Yojana (SGMBY) scheme to an impressive ₹20,000 crore. This marks a substantial increase from the previous allocations of ₹11,100 crore in the FY25 Revised Estimates and ₹6,250 crore in the FY25 Budget Estimates.
Launched on February 15, 2024, by Prime Minister Narendra Modi, the SGMBY scheme aims to offer free electricity to households through the installation of rooftop solar panels. With an initial budget outlay of ₹75,021 crore, this initiative is crucial for promoting renewable energy sources in India.
Implementation of the Scheme
Under this scheme, distribution companies (discoms) are appointed as State Implementation Agencies (SIAs). Their responsibilities include:
- Facilitating the availability of net meters.
- Ensuring timely inspections and commissioning of solar panel installations.
Approximately one crore beneficiaries are expected to receive up to 300 units of free electricity each month through these rooftop solar installations. This initiative is anticipated to lead to annual savings of around ₹15,000 to ₹1,80,000 for families. Ultimately, it aims to accelerate India’s transition to renewable energy.
History and Future of the Scheme
This initiative follows the footsteps of a previous rooftop solar plan initiated in 2014, which sought to achieve 40 gigawatts (GW) of solar energy capacity by 2022. However, this goal was extended to 2026 due to slower than anticipated progress, and as of November 2023, only 10.4 GW has been realized.
The current budget increase signifies a renewed commitment by the government to promote sustainable energy solutions and reinforce India’s objectives in combating climate change.