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A Milestone That Shifts India’s Energy Landscape
As of March 2025, PM Surya Ghar: Muft Bijli Yojana crossed a historic milestone—10 lakh (1 million) homes now generate their own clean electricity. Today, less than a year later, that number has jumped to nearly 24 lakh households. This is not just infrastructure; it represents real families—across Rajasthan, Maharashtra, Tamil Nadu, and beyond—receiving zero electricity bills each month. Yet fewer than one in four eligible Indians understand what this scheme actually promises, and more than one-third of those who apply for loans face rejection.
This article cuts through the political narrative and explains what PM Surya Ghar truly is, who qualifies, what hidden obstacles await, and the exact next steps you should take if considering rooftop solar.
TL;DR: Three Key Takeaways
🔆 The Offer: Central government covers 30–40% of rooftop solar cost (₹30,000–₹78,000 subsidy depending on your electricity use); you pay the balance via collateral-free bank loan at 6% annual interest.
⚡ Free Electricity Reality: You receive 300 units of free power monthly; any excess consumption is billed at your state’s standard tariff—not entirely “free,” but substantially cheaper.
📋 The Catch: 38% of loan applications are rejected due to low credit scores, missing documents, or prior defaults; DISCOM delays and DCR module shortages can extend timelines from 30 days to 120 days.
What Has Been Announced—Confirmed vs. What’s Still Pending
The PM Surya Ghar scheme is active and operational, not a draft or proposal. The Government of India approved it on February 29, 2024, with online applications live since February 13, 2024. Here’s the current state as of January 2026:
✅ Confirmed Facts
- Target: 1 crore (10 million) residential households by March 2027
- Current Progress: 23.96 lakh installations completed; 53.54 lakh+ applications received
- Subsidies Paid: ₹4,770 crore disbursed to 6.13 lakh beneficiaries as of March 2025
- Loan Disbursement: ₹3,100+ crore in bank loans processed
- Zero-Electricity Households: Over 7.7 lakh homes now receive bills totaling ₹0
- Scheme Duration: Operational until FY 2026–27 (March 2027)
⏳ Pending / In Progress
- 1 Crore Target Completion: Projected March 2027; currently at 24% progress—requiring 76 lakh more installations in 15 months
- 30 GW Capacity Goal: Scheme aims to add 30 GW of rooftop solar capacity; currently at 3 GW as of March 2025
- Model Solar Villages: One demonstration village per district selected; ₹800 crore allocated, ₹1 crore per village
- Grid Integration Challenges: Parliamentary Standing Committee noted slow DISCOM coordination; real-time data sync still incomplete
Who Is Eligible—and Who Is Explicitly Excluded
This is where most confusion arises. The scheme appears simple on the surface but excludes millions who assume they qualify.
Core Eligibility Requirements
To apply, you must satisfy all of these conditions:
- Indian Citizenship (non-negotiable)—Permanent Resident Non-Citizens are excluded
- Own Your Home with a structurally sound rooftop suitable for 1–3 kW solar panels—renters, tenants, and apartment dwellers without collective RWA approval cannot apply directly
- Valid Electricity Connection registered in your name—prepaid or postpaid meter required
- No Prior Solar Subsidy—if you received government solar support previously, you’re ineligible
- Residential Use Only—commercial, industrial, and mixed-use buildings excluded
- Domestic Content Compliance—solar modules and cells must be manufactured in India (no imported panels)
Critical Exclusions
| Who Is Excluded | Why |
|---|---|
| Apartment Dwellers (Individual) | Only if housing society collectively applies under group model; individual applications rejected |
| Renters & Tenants | No rooftop ownership rights |
| Commercial/Industrial Users | Scheme restricted to residential households only |
| Those with Prior Solar Schemes | MNRE subsidy, state subsidy, or any prior benefit disqualifies you |
| Imported Solar Module Preference | DCR requirement mandates India-made modules—cheaper imports ineligible for subsidy |
| Those with CIBIL Defaults | Default or write-off in credit history = automatic loan rejection |
For Loan Applications: Additional Criteria
If you plan to finance the balance via bank loan, lenders add these requirements:
| Loan Tier | Up to ₹2 Lakh (≤3 kW) | Above ₹2 Lakh (3–10 kW) |
|---|---|---|
| CIBIL Score Minimum | 680+ (new-to-credit eligible) | 680+ |
| Income Proof | Not mandatory | ₹3 lakh annually (minimum) |
| Documents | Electricity bill + KYC | ITR / Form 16 (last 2 years) + bank statement |
| PAN Card | Optional | Mandatory |
| Age Limit | Up to 65+ (with co-borrower) | Up to 65+ (with co-borrower) |
| Property Ownership | Legal proof required | Legal proof required |
Financial Benefits Explained in Plain Language
The government subsidy structure depends on your household’s monthly electricity consumption. This is because the scheme assumes larger consumption = larger system = bigger cost burden.
Subsidy Tiers
| Your Avg. Monthly Consumption | System Size Recommended | Government Subsidy You Receive |
|---|---|---|
| 0–150 Units | 1–2 kW | ₹30,000–₹60,000 |
| 150–300 Units | 2–3 kW | ₹60,000–₹78,000 |
| Above 300 Units | 3+ kW | ₹78,000 (capped) |
Real-World Example:
If your monthly bill is ₹3,500–4,500 (consumption ~150–200 units), the government covers ₹60,000 of your system cost. At ₹70,000 per kW installed (benchmark price), a 2 kW system costs ₹1,40,000. After subsidy, you pay ₹80,000—via bank loan or savings.
What About the “Free Electricity” Promise?
This is where political communication diverges from reality. Under PM Surya Ghar, you receive 300 units of free electricity monthly—not unlimited. Here’s what happens:
- First 300 units generated: Credited to your account at ₹0 (provided by rooftop system)
- Excess generation (beyond 300 units): Billed at your state’s standard electricity tariff
- On cloudy days / monsoon: If your system generates only 180 units, you draw 120 units from the grid at full tariff
- Net metering agreement: When your system generates excess, surplus power flows to the grid; you receive credit (if net-metered) or payment (state-dependent)
Net Impact: A household consuming 200–250 units monthly sees electricity bills drop by 70–80%, not 100%. For high-consumption households (500+ units/month), free electricity covers only 60% of demand.
Subsidy Transfer Timeline
The government pledges 15–30 day subsidy transfer post-installation. In practice:
- Best case: 30 days from system commissioning
- Typical case: 45–60 days (DISCOM data delays, portal glitches)
- Worst case: 120+ days (DCR verification issues, duplicate module serial numbers)
Once subsidy hits your bank account, your loan EMI is automatically adjusted downward, reducing your monthly repayment burden.
Comparison: PM Surya Ghar vs. Other Rooftop Solar Options
| Aspect | PM Surya Ghar | State Solar Schemes | Private Solar Companies |
|---|---|---|---|
| Subsidy Coverage | 30–40% of cost | Varies (10–25% typically) | None (market-rate pricing) |
| Loan Support | ₹2 lakh–₹6 lakh @6% | Limited; state-dependent | Available; 9–12% typical |
| Processing Fees | NIL | Variable | NIL |
| Installation Quality Control | Vendor-registered; DISCOM inspection | Minimal oversight | Vendor-dependent; variable |
| Warranty Support | 25-year module warranty; 5-year inverter | State-dependent | 25-year module; 5–10-year inverter |
| Net Metering Integration | Centralized portal; standardized | Manual DISCOM process | Manual; slower integration |
| Grievance Redressal | Call center (15555, 12 languages) | Ad-hoc | Vendor-dependent |
| Time to Installation | 45–120 days (typical) | 60–180 days | 30–60 days (faster; no subsidy) |
The Skeptic’s View: What the Government Doesn’t Emphasize
Government announcements highlight 10 lakh installations and ₹75,000 crore budgets. Institutional ground reports tell a different story.
1. The Loan Rejection Crisis
As of September 2025, public sector banks rejected 305,667 loan applications out of 803,515 received—a 38% rejection rate. The reasons:
- Low CIBIL scores: Applicants with prior defaults or multiple loans unable to maintain 680+ score
- Incomplete documentation: Many applicants unaware of income proof requirements for loans >₹2 lakh
- Agricultural loan histories: Farmers with past CIBIL hits ineligible despite now being creditworthy
- Missing address proofs: Those without recent utility bills or property tax receipts face delays
Impact: Tens of thousands of eligible households cannot access concessional loans, forcing them to either pay full cost upfront (infeasible) or accept private solar at higher rates with no subsidy.
2. DCR Module Shortage & Rising Costs
The Domestic Content Requirement (DCR) mandates India-made solar modules. But domestic cell manufacturing capacity is 25 GW while module capacity exceeds 100 GW—a critical imbalance.
Result: DCR-compliant modules cost ₹23–26 per watt; non-DCR imports cost ₹12–15 per watt. Many consumers forgo subsidies entirely and install non-DCR systems cheaper than the subsidy-eligible option. This defeats the Make in India objective while reducing scheme adoption.
3. DISCOM Delays & Net Meter Shortages
Parliamentary Standing Committee flagged that DISCOMs are bottlenecks. Timelines mandated are 30 days; actual timelines are 45–120 days due to:
- Net meter unavailability: Electricity distribution companies facing meter shortages; inspection queues extending 2–3 months
- Load extension delays: Consumers waiting 30–60 days for DISCOM to enhance their electrical load capacity
- Data sync failures: Portal and DISCOM systems not communicating; subsidy verification delayed
- DISCOM staff limitations: Insufficient inspectors; some states have <100 inspectors for 500,000+ applications
4. Module Serial Number Fraud & Portal Glitches
A critical 2025 issue: duplicate solar module serial numbers flooded the national portal, preventing vendors from registering legitimate installations. When a module’s serial number already exists in the database, the system rejects the new installation as “counterfeit,” even if it’s genuine.
Consequence: Installations delayed or denied subsidy; consumer frustration; vendor revenue frozen. As of late 2025, this issue remained partially unresolved.
5. The Vendor Concentration Problem
Vendors are concentrated in a few states (Rajasthan, Gujarat, Maharashtra). In smaller states and rural areas, vendor availability is limited, leading to:
- Higher installation costs: Monopolistic pricing in vendor-scarce areas
- Quality variance: New, inexperienced vendors in some regions installing substandard systems
- Long lead times: Customers in tier-2/tier-3 cities waiting 2–3 months for availability
6. Parliamentary Concerns (December 2025)
The Standing Committee on Energy expressed concern over “slow progress,” highlighting inconsistencies in state implementation and logistical bottlenecks. The Committee noted that while 23.96% of the target is achieved, the remaining 76% must be installed in 15 months—requiring acceleration from current pace.
The Application Process: A Step-by-Step Reality Check
Contrary to claims of “5-minute registration,” the full journey involves 6–9 steps spanning 45–120 days. Here’s what actually happens:
Stage 1: Online Registration (5–10 minutes)
- Visit pmsuryaghar.gov.in
- Enter mobile number → receive OTP
- Provide consumer account number (electricity meter number)
- System auto-fetches your name, address, consumption history
- Select DISCOM
- Timeline: Same-day completion
Stage 2: DISCOM Feasibility Check (1–7 days)
- Historically, consumers needed Technical Feasibility Reports (TFRs)
- As of late 2024, systems <10 kW waived the TFR requirement
- DISCOM auto-enhances your electrical load if needed
- Timeline: 1–3 days (variable by state)
Stage 3: Vendor Selection & Quotation (3–7 days)
- Portal lists pre-registered vendors in your district
- You compare vendor ratings, past projects, pricing
- Select vendor; vendor provides detailed quotation
- Reality Check: Vendor selection is competitive; some regional monopolies exist
- Timeline: 3–7 days (depends on vendor availability and your decision speed)
Stage 4: Bank Loan Application (Optional) (3–15 days)
- If financing needed, apply via Jan Samarth Portal (separate from solar portal)
- Upload income documents, property ownership proof, electricity bill
- Bank reviews CIBIL score, income, documents
- Bank sanctions or rejects (38% rejection rate)
- Timeline: 5–15 days; rejections add 0 days but necessitate alternate financing
Stage 5: Solar Installation (7–30 days)
- Vendor coordinates site assessment
- Material procurement (often delayed due to DCR module shortage)
- Installation labor (1–3 days on-site work)
- System testing by vendor
- Timeline: 7–30 days; DCR supply delays can extend this to 45+ days
Stage 6: DISCOM Inspection & Net Metering (7–30 days)
- DISCOM engineer inspects installation
- Net meter installation (if not already present)
- DISCOM staff verifies module serial numbers and certifications
- Module serial number verification against national database (often fails due to duplicates)
- DISCOM uploads commissioning details to portal
- Timeline: 7–30 days; inspection queues can delay this to 60+ days
Stage 7: Subsidy Processing & Transfer (15–60 days)
- After commissioning certificate issued, system generates CFA (Central Financial Assistance) request
- SECI (Securitization and Reconstruction of Financial Assets and Enforcement of Securities Interest Act) releases funds
- State Subsidy Agency releases state-level CFA component
- Subsidy credited to your designated bank account
- Timeline: 15–30 days (pledged); 45–60 days (typical); 90–120 days (worst case due to portal issues, duplicate serial numbers, or data sync failures)
Stage 8: Loan EMI Commencement
- Once subsidy is credited, bank adjusts your loan EMI downward
- Your remaining loan tenure is 10 years from loan sanction date
- Early repayment: No prepayment penalty
End-to-End Timeline
| Scenario | Best Case | Typical Case | Worst Case |
|---|---|---|---|
| Normal Installation | 35–45 days | 60–90 days | 120–150 days |
| Loan Rejection Path | N/A | +30–45 days (find alternate finance) | +60–90 days (personal savings / private loan) |
| DCR Module Delay | N/A | +15–30 days | +60–90 days |
| DISCOM Queue Delay | N/A | +30–45 days | +90–120 days |
My Take: The Human Cost Behind the Scheme
As a policy analyst, I see PM Surya Ghar as well-intentioned but operationally strained. The government designed an ambitious, citizen-centric platform. The challenge is that execution depends on 90+ DISCOMs, 9,000+ vendors, 12 public sector banks, and multiple state agencies—many of which have competing priorities and limited coordination mechanisms.
The wins are real: 24 lakh households now have cheaper electricity. ₹4,770 crore in subsidies have reached beneficiaries. Zero-electricity-bill months are tangible. The scheme is fundamentally sound.
But the gaps are equally real: A 38% loan rejection rate means 3 lakh qualified households (potentially) were turned away. DCR module shortages and duplicate serial number issues suggest backend governance is fragile. Parliamentary Committee concerns signal that acceleration to 1 crore by 2027 requires intervention, not just current pace.
What I’d recommend: If you’re planning to apply, do so in the next 6 months while supply chains stabilize and DISCOM processes improve. The scheme allocations have been increased 80% in FY 2025–26 (from ₹11,100 crore to ₹20,000 crore), signaling government commitment. But the grid readiness challenges are real, and slower deployment in H2 2026 is likely as DISCOMs become overwhelmed.
What You Should Do Right Now—Three Concrete Actions
Action 1: Verify Your Eligibility (This Week)
Before investing time, confirm you meet core criteria:
- Are you an Indian citizen with a property deed or tax receipt?
- Does your rooftop face north/south with ≥4 hours unobstructed sunlight daily?
- Is your electricity bill in your name (prepaid or postpaid)?
- Have you never received solar subsidy before?
- Is your rooftop property a residential home (not commercial)?
If you answered “no” to any question, the scheme is not available to you in its standard form (except apartment dwellers—RWA may apply collectively).
Next Step: Visit pmsuryaghar.gov.in, enter your electricity consumer number, and check the portal status automatically.
Action 2: Check Your CIBIL Score Before Loan Application
If you plan to take a loan, your CIBIL score is critical. A 38% rejection rate is largely driven by CIBIL scores <680.
- Obtain your free CIBIL score from cibilscore.com or your bank
- If >680: Proceed with loan application confidence
- If 650–680: Bank discretion applies; provide strong income proof to offset borderline score
- If <650: Loan rejection likely; arrange alternate financing (personal savings, private loan, or pay full system cost upfront)
Expected Processing: 3–5 days once you apply.
Action 3: Gather Documents & Pre-Register (Within 2 Weeks)
Start collecting documents now, even if you’re undecided. DISCOMs have queues; early registration improves timeline predictability.
Essential Documents:
- Aadhaar card (identity + address proof)
- Latest electricity bill (≤3 months old)
- Property ownership proof (property tax receipt, deed, or municipal valuation list)
- Bank account passbook (first 2 pages showing account number)
- Passport-size photograph
- Income proof if loan >₹2 lakh (ITR or Form 16 for last 2 years)
Process:
- Visit pmsuryaghar.gov.in → Register
- Choose your DISCOM & verify electricity consumer details
- Submit application (system auto-checks feasibility)
- Wait for DISCOM confirmation (1–7 days)
- Receive vendor list once approved
Expected Outcome: You’ll know your eligibility status within 2 weeks, allowing you to plan finances accordingly.
FAQ: Answers to Common Misconceptions
Q: Do I pay ₹0 forever for electricity?
A: No. You receive 300 units monthly for free. Beyond that, you pay normal tariff rates. For typical household consumption (200–300 units), expect 70–80% bill reduction, not 100%.
Q: Can I get a loan without a job (self-employed)?
A: Yes. Income proof can be ITR (self-employed) or business registration documents. Self-employed applicants face no discrimination, provided CIBIL score is ≥680 and income can be verified.
Q: What if my roof is partially shaded?
A: Partial shade reduces efficiency by 20–40%. The portal’s feasibility check may flag this. Vendors will assess; the scheme doesn’t explicitly exclude shaded rooftops, but low generation may make the economics unfavorable.
Q: Can I use imported solar panels?
A: Not if you want the subsidy. The scheme mandates DCR-compliant (India-made) modules. Imported panels are ineligible for the ₹30,000–₹78,000 subsidy, though you can install them at your own cost without government support.
Q: What happens if my loan is rejected?
A: You can either pay the system cost upfront (savings), arrange a private loan (likely 9–12% interest, vs. 6% under the scheme), or request a co-borrower (spouse/adult child) to improve CIBIL score perception.
Q: How long do solar panels last?
A: Typically 25–30 years. The scheme includes 25-year module warranty (degradation <0.7% annually) and 5-year inverter warranty. Post-warranty maintenance is your responsibility.
Q: If I move houses, does the system come with me?
A: No. The system is fixed to your rooftop and transfers to the property’s new owner if you sell. If you relocate, you cannot take the system.
Q: Can my apartment society apply collectively?
A: Yes, if the housing society (RWA) has a common rooftop space. The collective application process is different from individual home applications. Contact your RWA to explore this.
Disclaimer
This article is informational and based on government publications, official portals, and verified news sources as of January 20, 2026. Scheme details are subject to change by the Ministry of New and Renewable Energy. Eligibility criteria, subsidy amounts, and loan terms may be updated periodically. Readers are advised to verify current terms on pmsuryaghar.gov.in before applying. This article does not constitute financial or legal advice. Consult your bank, electricity distribution company, or a solar vendor for personalized guidance.
