PM Surya Ghar Muft Bijli Yojana: Bank Loans available for scheme

Rising electricity bills and concerns about environmental impact are pressing issues for many households. In response, the PM Surya Ghar Muft Bijli Yojana (PM-SGBMY), also known as the Rooftop Solar Scheme, emerges as a game-changer. This initiative empowers homeowners to embrace clean, sustainable solar power by offering attractive loan options, making it financially accessible.

Finance Minister Nirmala Sitharaman introduced the Rooftop Solar Scheme in the 2024-25 budget, subsequently launched by Prime Minister Narendra Modi. The scheme aims to install solar panels in one crore houses across India, with the government providing significant subsidies directly to bank accounts and offering highly beneficial bank loans to alleviate financial strain on citizens.

Under the PM Surya Ghar Muft Bijli Yojana, households consuming more than 300 units a month, and those requiring larger systems exceeding 3 KW, are eligible for subsidies of up to Rs. 78,000. The scheme offers a subsidy of Rs. 30,000 per KW for solar panels up to 2 KW and Rs. 18,000 per KW for panels up to 3 KW.

Moreover, households can access low-interest loan products with no collateral requirements from various banks. Interest rates are set at 0.5% higher than the current repo rate, ensuring affordability. For instance, if the repo rate decreases, the effective interest rate for consumers also decreases accordingly.

Several banks participate in providing loans for solar rooftop panels under the PM Surya Ghar Muft Bijli Yojana. State Bank of India, Central Bank of India, Punjab National Bank, Canara Bank, and Union Bank of India offer loans ranging from Rs. 2 lakh to Rs. 6 lakh, depending on the capacity of the solar rooftop installation. Disbursements are made directly to vendors or EPC contractors upon completion of necessary feasibility assessments, as per MNRE regulations.

For further details and a comprehensive list of participating banks, individuals can visit the official PM Surya Ghar Muft Bijli Yojana website. This initiative not only promotes clean energy adoption but also empowers citizens to contribute to environmental sustainability while reducing their energy costs.