Pradhan Mantri Suryodaya Yojana - A Complete Guide

5 min read
Pradhan Mantri Suryodaya Yojana

Empowering Homes and sparking a solar revolution, bringing light, sustainability, and self-reliance to every corner of India

What is Pradhan Mantri Suryoday Yojana?

In a visionary move towards sustainability and energy self-reliance, the Indian government has launched the Pradhan Mantri Suryodaya Yojana, a groundbreaking initiative aimed at providing rooftop solar power systems to one crore households across the country. With a focus on empowering the poor to middle-class families, this scheme seeks to harness the potential of solar energy and make India a frontrunner in the global renewable energy landscape.

Objectives of PM Suryodaya Yojana

The primary goal of the Pradhan Mantri Suryodaya Yojana is to equip one crore households with rooftop solar panels, thereby facilitating the generation of electricity from clean and renewable solar energy. The initiative aligns with the broader vision of making India self-reliant in the energy sector and reducing its dependence on conventional power sources.

PM Modi's Call for National Campaign

Prime Minister Narendra Modi has urged officials to initiate a massive national campaign to mobilize residential consumers, encouraging them to adopt rooftop solar systems on a large scale. By fostering awareness and promoting the benefits of solar energy, the government aims to drive widespread adoption of solar power in the country.

Beneficiaries of PM Suryodaya Yojana

The PM Suryoday Yojana is designed for people who use less than 300 units of electricity, usually those in the economically weaker section of our society. These individuals often face challenges when it comes to getting a loan.

Who Are Eligible for PM Suryoday Yojana

To ensure that the benefits of the scheme reach the intended beneficiaries, certain eligibility criteria have been established. Applicants must be permanent citizens of India, with an annual income not exceeding Rs. 1 or 1.5 lakh. The possession of all original documents is mandatory, and government employees are excluded from availing the benefits of the scheme. Other basic criterias are:

    • Applicant should be Indian Resident.
    • Age of the applicant should be more than 18 Years.
    • Houses/Building with required space for installation.

60% Subsidy On Rooftop Solar System

The Indian government has announced plans to significantly increase the subsidy for rooftop solar installations to bolster its renewable energy efforts. Under the newly launched Pradhan Mantri Suryoday Yojana, the subsidy will surge to 60%, a marked increase from the existing 40% subsidy for all consumers. Notably, consumers in hilly/north-eastern states and union territories will receive an even higher subsidy rate of 70%, recognizing the unique challenges and potential in these regions. This initiative underscores the government's commitment to accelerating the adoption of solar energy and fostering sustainable development across the nation.

Financial Allocation in Interim Budget 2024

In the interim budget for the fiscal year 2024-25, Finance Minister Nirmala Sitharaman made a notable announcement regarding the allocation of funds for solar initiatives. She revealed that the government has earmarked Rs 10,000 crore for this purpose, indicating a substantial increase compared to previous allocations. This boost represents a 110% rise from the revised estimates for the previous fiscal year, which stood at Rs 4,757 crore.

The move has garnered attention from stakeholders in the renewable energy industry and environmental advocates, who view it as a positive step towards accelerating the transition to clean energy

300 Units of Free Electricity

Alongside increased funding for solar projects, a new policy offers 300 units of free power annually through rooftop solar installations, saving households and businesses ₹15,000-18,000 per year. This incentivizes solar adoption, reduces reliance on the grid, and promotes economic stability and renewable energy growth.

Nodal Agency & CPSUs

The Ministry of New and Renewable Energy (MNRE) has entrusted REC a Maharatna power finance company as the NODAL agency for the PM Suryodaya Yojana the responsibility of overseeing the implementation of the rooftop solar scheme. REC will issue line of credit to eight central public sector undertakings (CPSUs), each to the tune of approximately Rs 15,000 crore. Thus totaling upto up to Rs 1,20,000 crore to support the Pradhan Mantri Suryodaya Yojana. The 8 CPSUs that are designated as implementing agencies under PM suryodaya Yojana Are As follows:

    • NTPC Ltd
    • NHPC Ltd
    • Energy Efficiency Services Ltd (EESL)
    • Power Grid Corporation of India Ltd (PGCIL)
    • Solar Energy Corporation of India (SECI)
    • THDC India Ltd
    • SJVN Ltd
    • NEEPCO Ltd

CPSUs' projects operating under the RESCO mode receive funding through a combination of a 60% subsidy from MNRE and a 40% loan from REC Ltd.

Boosting the Solar Industry in India

The implementation of the Pradhan Mantri Suryodaya Yojana marks a crucial step in bringing electricity to lower and middle-income families, particularly in areas without conventional power access. One of the significant barriers to the widespread adoption of rooftop solar, the high upfront costs, is effectively addressed by the empowering subsidies provided by the scheme.

Neeraj Kuldeep, Senior Programme Lead at the Council on Energy, Environment, and Water, highlights the vast potential for installing rooftop solar in both rural and urban areas across India. Research suggests that more than 640 gigawatts of rooftop solar plants could be installed in homes, showcasing the substantial scale of this initiative.

Currently, around 7 to 8 lakh households have already embraced rooftop solar, benefiting from the government’s capital subsidy program. The Pradhan Mantri Suryodaya Yojana is expected to further accelerate the growth of the solar industry in India, creating a positive impact on the environment, economy, and the lives of the citizens.

How Bluebird Solar Is Contributing

Recognizing the pivotal impact of the Pradhan Mantri Suryodaya Yojana, Bluebird Solar commends its efforts in propelling the clean energy movement, notably through its ambitious aim to solarize 1 crore households. The government's provision of subsidies and vital financial aid for eligible solar projects is set to catalyze widespread adoption of solar power, empowering numerous families to embrace solar rooftop systems and reduce electricity costs. We are deeply optimistic about this initiative and pledge our commitment to contribute by providing cutting-edge solar solutions perfectly aligned with the scheme's objectives.


The Pradhan Mantri Suryodaya Yojana is a beacon of hope, ushering in a new era of clean and sustainable energy for millions of households in India. By providing financial incentives and eliminating barriers, the government is fostering a solar revolution that not only makes electricity accessible to the masses but also contributes to India's global leadership in renewable energy. As the sun rises on a brighter and cleaner future, the Pradhan Mantri Suryodaya Yojana stands as a testament to India's commitment to a sustainable and self-reliant energy future.



  • Jagdish Soni

    3kw pm suryagrah muft bijli yojna


    This is a very good business. How it will be possible to start at first time. I have no land. I have my proprietor firm with GST Number. Please help me how can I start my business.

  • Ram


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