The Pradhan Mantri Surya Ghar Yojana (PM-SGY), launched in February 2024, has significantly advanced India’s rooftop solar capacity by adding approximately 4.9 GW across the residential sector. This initiative, building on the foundation of the Rooftop Solar Programme Phase-II, is pivotal in increasing the nation’s renewable energy capacity and aims to provide free electricity to 10 million households.
Major Boost for Rooftop Solar India
As of July 2025, the PM-SGY has driven the installation of around 4.9 GW of residential rooftop solar capacity. While this is a substantial achievement, it represents about 13% of the scheme’s ambitious target to install 30 GW by the 2027 fiscal year. The program has seen immense interest, with over 5.79 million applications submitted, but the conversion to completed installations highlights the challenges in implementation and subsidy disbursement.
A few states are leading this solar revolution. Gujarat is at the forefront with an installed capacity of 1,491 MW. Following closely are Maharashtra, Uttar Pradesh, Kerala, and Rajasthan. Together, these five states account for a remarkable 77.2% of the total capacity installed under the scheme.
Expanding its scope, the Ministry of New and Renewable Energy (MNRE) has also included government buildings, public sector undertakings (PSUs), and educational institutions under the program. These entities are now eligible for central financial assistance (CFA), broadening the initiative’s impact. The CFA for residential buildings covers up to 40% for the first 3 kW and 20% for the next 4 kW. For government buildings and other institutions, the CFA is capped at 30%.
India’s Solar Energy Capacity for Rooftop Solar India
India’s commitment to solar energy is a cornerstone of its climate and energy policy. The nation is making great strides towards its goal of achieving 500 GW of renewable energy capacity by 2030, with India’s renewable energy capacity reaching 223.6 GW as of April 2025. Solar power is a critical component of this growth.
Government initiatives like the National Solar Mission and the PM-SGY have been instrumental in this journey. The push for solar adoption is also fueling a domestic manufacturing boom. Understanding the basics of solar panel manufacturing and the specific solar panel raw materials required provides insight into this expanding industry. This growth is evident as India added a stunning 44.2 GW of solar module manufacturing capacity in the first half of 2025 alone.
The PM-SGY, with a substantial budget of ₹75,021 crore, offers financial assistance to accelerate rooftop solar adoption. However, reports indicate that only about 14.1% of the allocated subsidy funds have been disbursed, pointing to administrative hurdles that need to be addressed to maintain momentum.
Financial Impacts of Rooftop Solar India
Financially, solar energy offers compelling benefits. The most direct impact for consumers is a significant reduction in electricity bills. The PM-SGY’s subsidy structure makes the initial investment more accessible, making solar a viable option for a wider population. State-level initiatives, such as the Delhi Solar Policy 2024, further complement these central government efforts by offering additional incentives to residents.
Beyond individual savings, solar energy is a clean alternative to fossil fuels, producing no greenhouse gases during operation. This transition helps reduce India’s carbon footprint and its dependence on volatile international fuel markets, thereby enhancing national energy security. The entire solar panel manufacturing process is becoming more efficient, further improving the financial and environmental case for solar power.
The PM-SGY has played a crucial role in India’s journey towards renewable energy leadership. While the addition of 4.9 GW is a strong start, overcoming challenges related to installation speed and subsidy disbursement will be key to achieving the scheme’s ambitious targets. The inclusion of government and educational institutions promises to further widen its impact, bringing India closer to its clean energy goals.
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