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Pradhan Mantri Suryodaya Yojana – A Complete Guide

The Pradhan Mantri Suryodaya Yojana recently launched by the Government of India is a conscious move towards sustainability and energy self-reliance. Moreover, this groundbreaking initiative endeavours to provide rooftop solar power systems to one crore households across the country. The goal of the sustainable scheme is to empower the poor to middle-class families by reducing their electricity bills and generating income through the sale of solar power.

This scientific scheme focuses on harnessing solar energy and making India a leader in the global renewable energy landscape. In this comprehensive guide to Pradhan Mantri Suryodaya Yojana, we shall look at the main benefits of the scheme, its aims and advantages.

Objectives of PM Suryodaya Yojana

The primary aim of the Pradhan Mantri Suryodaya Yojana is to equip one crore households with rooftop solar panels. Thus enabling the generation of clean and renewable solar energy. Here is a look at the objectives of the scheme:

  • The Yojana aims to provide clean and renewable solar energy by equipping one crore households with rooftop solar panels. Thus, they can generate electricity from solar energy.
  • The initiative aligns to make India self-reliant in energy and reduce dependence on conventional power sources.
  • Prime Minister Narendra Modi has urged officials to begin a national campaign on the scheme. Thus, encouraging residential consumers to adopt rooftop solar systems on a massive scale.
  • The goal of the government is to spread awareness drive and promote the benefits of switching over to solar power.
  • The program aims to install rooftop solar plants in households with a monthly consumption lower than 300 units.
  • According to an MNRE  notification, 60% of the project cost will be subsidised, with the remaining 40% provided as a loan.
  • The designated central public sector enterprise of the state will take the loan, not the beneficiary.
  • Extra units generated by the plant can be used to pay off the loan.
  • The homeowner gets the ownership of the plant once the loan is repaid.
  • Homeowners only need to provide the space for the installation.

Key Features of PM Suryodaya Yojana

There are three primary features of the PM Suryodaya Yojana mainly aiming to benefit households across the country.

  • Target Audience: The main objective is to benefit 1 crore families, the scheme emphasises the discount on electricity bills for the poor and middle class.
  • Energy Self-reliance: The goal of the scheme is to lower India’s dependency on conventional power assets and circulate closer to sustainable electricity bills. It aims to do this by installing rooftop solar systems.
  • Market Implications: The initiative is anticipated to benefit businesses worried about solar panel setup and related infrastructure, probably leading to long-term investment opportunities.

Eligibility Criteria for PM Suryodaya Yojana

The government has outlined certain eligibility criteria so that the benefits of the scheme reach the intended beneficiaries. The criteria include: 

  • Residential Status: Applicant must be Indian.
  • Income Criteria: The annual income should not exceed Rs. 1 or 1.5 lakh. 
  • The possession of all original documents is mandatory,
  • Government employees are excluded from availing of the benefits
  • Property Ownership: Ownership of assets may be a criterion.
  • Those who have no previous benefits will get priority
  • The age of the applicant should be more than 18 Years.
  • Houses/Buildings with required space for installation.

PM Suryoday Yojana Documents Required

To be eligible for the scheme, applicants need to submit the necessary documents for the registration system of Pradhanmantri Suryoday Yojana. Here is an important document list:

  • Applicants Aadhar card
  • Applicant profits certificates.
  • Domicile certificate
  • Mobile Number
  • Electricity bill
  • Bank passbook
  • Passport size photo
  • Ration card

PM Suryodaya Yojana Application Process

Here is a step-by-step outline of the application process:

  • To apply, go to the official website of the PM Suryodaya Yojana:
  • Check the scheme details and click on apply
  • Carefully type in all the required information
  • Now upload the files that are required
  • Next, you have to submit your application consent
  • After this, it is time to submit your application form       
  • Lastly, download the application copy for your future reference

60% Subsidy Increase On Rooftop Solar System

The current subsidy is poised to go up by 60% according to a decision by the Indian government for rooftop solar installations to support renewable energy. Therefore, there will be a significant increase under the new Pradhan Mantri Suryoday Yojana, and the subsidy will go up by 60% exceeding the current 40% subsidy for all consumers. Notably, consumers in northeastern states, hilly areas, and union territories, consumers will get an even higher subsidy of 70%. This shows the government’s urge and commitment to promote solar energy and sustainable development in the country.

Financial Allocation in Interim Budget 2024

In the 2024-25 interim budget, a notable increase in funds for solar power initiatives was stated by Finance Minister Nirmala Sitharaman. The fund’s allotment stood at Rs 10,000 crore, a 110% rise from the earlier revised estimates. Also, this signals a strong commitment to advancing clean energy transition. 

  • The allocation represents a 110% increase from the revised estimates for the previous fiscal year.
  • Stakeholders in the renewable energy industry and environmental advocates, see it as a positive step towards the transition to clean energy.
  • An additional new policy offers 300 units of free electricity annually through rooftop solar installations. Thus, aiming to save households and businesses ₹15,000-18,000 per year.
  • Therefore the aim includes incentivising solar adoption, reducing reliance on the grid, and promoting economic stability and growth in renewable energy.

Nodal Agency & CPSUs

The PM Suryoday a Yojana’s rooftop solar scheme implementation will be overseen by REC, a Maharatna power finance company, as the NODAL agency. REC has been assigned by The Ministry of New and Renewable Energy (MNRE). Also, REC will provide a total line of credit of approximately Rs 1,20,000 crore to eight central public sector undertakings (CPSUs). Moreover, each receives around Rs 15,000 crore. The CPSUs designated as implementing agencies under the PM Suryodaya Yojana are:

  • 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

Boosting the Solar Industry in India

Implementing 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. 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.

The  Pradhan Mantri Suryodaya Yojana is a key step in providing electricity to lower and middle-income families.  The scheme will effectively be addressing important barriers to rooftop solar adoption, and high upfront costs, through subsidies. Scientific research suggests a potential of over 640 gigawatts of rooftop solar plants could be installed in homes. Already 7 to 8 lakh households have access to rooftop solar and are benefiting from the government’s program. 

Beneficiaries of PM Suryodaya Yojana

The PM Suryoday Yojana is aimed at benefiting people who use less than 300 units of electricity. In other words the economically weaker section of our society. The benefits of PM Suryodaya Yojana are given below:

  • The PM Suryodaya Yojana will reduce electricity bills.
  • Poor and middle-class citizens of the country will be relieved from paying high home electricity bills. 
  • Rooftop solar gives a 24-hour power supply to every residence in a country.
  • 1 crore poor and middle-class citizens in the country can get rooftop solar panels installed, to generate electricity and reduce the energy.
  • The issue of free electricity in the country can be true

Main Benefits of PM Suryodaya Yojana

The Pradhan Mantri Suryoday Yojana will be offering 3 main benefits:

1. Zero Investment

As the subsidy and loan will cover the entire cost, the beneficiary is not required to make any capital investment.

The main implementing agency is REC Limited and eight central public enterprises have been given the responsibility of setting up solar plants under the RESCO model. Everything from installation to loan application will be done by the agencies.

2. Free Electricity

The Pradhan Mantri Suryoday Yojana will offer free electricity for up to 300 units every month to beneficiaries. The household will be able to meet its complete power demand through solar. Additionally, sell the surplus power to the DISCOMs and earn.

3. Additional Savings

Therefore, beneficiaries stand to meet their energy needs through solar energy and by selling off the extra units to the distribution company consumers can save ₹15,000-₹18,000 annually.


Implementing the Pradhan Mantri Suryodaya Yojana will act as a beacon of hope. Moreover, it will usher in a new era of clean and sustainable energy for millions of households in India. 

The guide has outlined the primary objectives and crucial pillars of the scheme. So, you must now have a fair idea that by providing financial incentives and eliminating barriers, the government is fostering a solar revolution. The scheme thus not only makes electricity accessible to the masses but also contributes to India’s global leadership in renewable energy. 

Therefore, it is clear that the Pradhan Mantri Suryodaya Yojana stands as a testament to India’s commitment to a sustainable energy future. 
To know more about taking the next step towards a sustainable future, explore Prabha Power Rooftop Solar Panels. Our expert team is ever ready to provide the best information on the range of products at Prabha Power to take you towards a sustainable future. For more details, please call us at +91 9394879486.