The Solar UP scheme, part of PM Surya Ghar Muft Bijli Yojana, offers free rooftop solar panels to 1 crore Indian households, providing up to 300 units of free electricity monthly. With subsidies up to ₹78,000, it aims to cut power bills, promote clean energy, and create jobs. Over 1.28 crore registrations highlight its popularity, though challenges like awareness and regional disparities persist.
Solar UP: Empowering Indian Homes with Free Solar Panels
The Solar UP initiative, integrated into the PM Surya Ghar Muft Bijli Yojana, launched on February 15, 2024, is transforming India’s energy landscape. Backed by a ₹75,021-crore package, the scheme targets installing rooftop solar panels in 1 crore households, offering up to 300 units of free electricity per month. As of July 28, 2025, over 1.28 crore households have registered, with 14 lakh applications submitted, reflecting significant public interest.
Under the scheme, subsidies range from ₹30,000 for a 1 kW system to ₹78,000 for systems of 3 kW or higher, covering up to 60% of installation costs for 2 kW systems and 40% for 2-3 kW systems. Households can apply through the National Portal for Rooftop Solar (pmsuryaghar.gov.in), selecting empanelled vendors and accessing low-interest loans (around 7%) for remaining costs. The process is streamlined, requiring a valid electricity connection, proof of property ownership, and no prior solar subsidies.
The initiative promotes energy independence, reduces reliance on fossil fuels, and aligns with India’s renewable energy goals. A 5 kW system can generate approximately 600 units monthly, saving households around ₹4,200 per month at ₹7 per unit. It also fosters job creation in solar panel manufacturing, installation, and maintenance, particularly benefiting technically skilled youth. Gujarat, Maharashtra, and Rajasthan lead in installations, with Gujarat alone boasting 3,456 MW of rooftop solar capacity.
However, challenges remain. Only 25% of India’s 34 crore homes (8.5 crore) have a sanctioned load of 3 kW or above, making them eligible for the full subsidy. Awareness is low, with a 2023 Council on Energy, Environment and Water report noting that only 50% of Indians are aware of rooftop solar benefits. Regional disparities are stark, with southern and western states dominating installations, while eastern states like Bihar and Jharkhand lag due to limited infrastructure and skilled labor shortages.
The government is addressing these hurdles by developing model solar villages and offering incentives to Urban Local Bodies and Panchayati Raj Institutions. The scheme also supports local manufacturing, mandating made-in-India panels to boost the domestic solar industry. Despite missing the 2022 target of 40 GW rooftop solar capacity (currently at 11.87 GW as of March 2024), the deadline has been extended to 2026, with renewed focus on residential adoption.
Real-world impact is evident. In Delhi, resident Ruchika Chahana reported her summer electricity bills dropping from ₹15,000 to ₹3,750 after installing a solar system. In Bengaluru, a 120-unit apartment complex saved ₹52,500 monthly. These savings, coupled with environmental benefits like reducing 8 tonnes of CO2 annually per 5 kW system, underscore the scheme’s transformative potential.
Disclaimer: This article is based on information from government portals, news reports, and industry sources like the Ministry of New and Renewable Energy, The Hindu, and cleartax.in. Data is accurate as of September 2, 2025. Readers are advised to verify eligibility and subsidy details through official channels before applying.