PM Surya Ghar Muft Bijli Yojana: Under the PM Surya Ghar Muft Bijli Yojana, the government is offering loans up to ₹2 lakh at just 6% interest for installing solar panels on homes. Learn about the benefits, subsidies, and the complete application process.
The PM Surya Ghar Muft Bijli Yojana (PMSGMBY) has generated significant interest among those seeking to power their homes with clean and affordable solar energy. Under this scheme, the government offers loans up to ₹2 lakh at a low interest rate of 6% to those who install rooftop solar panels. For loans up to ₹6 lakh, the interest rate applies to those applying for regular home loans.
According to Finance Ministry data, as of September 2025, public sector banks (PSBs) have approved over 5.79 lakh applications under the scheme, amounting to a total of ₹10,907 crore.
What is PM Surya Ghar Yojana?
The PM Surya Ghar Muft Bijli Yojana (PMSGMBY) is an ambitious initiative of the central government. It aims to provide free electricity to the general public every month by installing solar panels on rooftops. Eligible families will receive up to 300 units of free electricity under this scheme.
The government is providing up to 40 percent subsidy for installing solar panels, reducing the burden on electricity bills and enabling every household to become energy self-sufficient. People can also earn income by selling excess electricity to the grid.
Interest on loans above ₹2 lakh
Loans up to ₹2 lakh attract an interest rate of 6%. For loans between ₹2 lakh and ₹6 lakh, the interest rate is determined in two ways. If you have a home loan, the interest rate will be the same as your existing home loan. Those without a home loan will pay 1% (100 basis points) more than the home loan interest rate.
Main benefits of PM Surya Ghar Yojana
The biggest benefit of the PM Surya Ghar Free Electricity Scheme is the subsidy. You’ll receive a subsidy of ₹30,000 per kilowatt on solar systems up to 2 kilowatts. An additional subsidy of ₹18,000 per kilowatt is provided for systems with a capacity of up to 3 kilowatts. Larger systems, i.e., solar systems with a capacity of more than 3 kilowatts, receive a total subsidy of up to ₹78,000. Furthermore, some other benefits include:
- No collateral required: Loans up to ₹2 lakh require no collateral.
- Long repayment period: Repayment period up to 10 years considering the power savings.
- 6 months relief: After getting the loan, there is no need to pay the installment for 6 months.
- No prepayment charges: If you prepay the loan, there are no additional charges.
- Easy Process: The entire process for loan application is digital and based on self-declaration.
How to apply for a loan
First, you need to register on the PM Suryaghar portal (https://pmsuryaghar.gov.in/). Complete your application and click ‘Apply for Loan.’ This will then process the loan further on the JanSamarth portal.
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