Rising electricity tariffs and increasing household consumption have made power bills a significant monthly expense for millions of Indian families. To ease this burden and promote energy access, the Government of India has introduced targeted subsidy initiatives under various state and central programs, commonly referred to as Free Electricity Schemes.
One of the most prominent recent initiatives is the PM Surya Ghar: Muft Bijli Yojana, launched under the leadership of Narendra Modi. The scheme aims to provide free electricity up to a specified limit through rooftop solar installations, reducing dependency on conventional grid supply while lowering household bills.
Table of Contents
What Is the Free Electricity Scheme?
The Free Electricity Scheme generally refers to government-backed programs that provide electricity subsidies or zero-cost power units to eligible households. These initiatives vary by state and may include:
• Free monthly electricity units (e.g., up to 100–300 units)
• Subsidized electricity tariffs
• Rooftop solar panel subsidies
• Direct benefit transfers for electricity bills
At the national level, solar-based benefits are managed through coordination between the Ministry of New and Renewable Energy and state electricity boards.
Overview Table
| Particulars | Details |
|---|---|
| Scheme Name | Free Electricity Scheme / Muft Bijli Yojana |
| Primary Benefit | Free or subsidized electricity units |
| Target Group | Low & middle-income households |
| Energy Source | Grid power / Rooftop solar |
| Subsidy Type | Bill waiver / Direct subsidy |
| Implementation | Central & State Governments |
Key Objectives of the Scheme
The Free Electricity initiatives are structured around long-term development goals:
- Reduce financial burden on low-income households
- Promote renewable energy adoption
- Increase rural electrification coverage
- Encourage rooftop solar installation
- Support India’s clean energy transition
The rooftop solar component aligns with India’s renewable energy targets and climate commitments.
PM Surya Ghar: Muft Bijli Yojana Explained
Under PM Surya Ghar: Muft Bijli Yojana:
• Households can install rooftop solar panels
• Government provides capital subsidy
• Up to 300 units of electricity per month may become effectively free
• Excess power can be fed back into the grid under net metering policies
The subsidy is transferred directly to the beneficiary’s bank account after installation verification.
This reduces electricity bills substantially and creates long-term savings for families.
Eligibility Criteria
Eligibility varies depending on state-specific schemes, but common requirements include:
• Applicant must be an Indian citizen
• Must own a residential property
• Electricity connection must be in applicant’s name
• Household income within defined limits (for certain schemes)
• Valid Aadhaar and bank account
For rooftop solar subsidies, technical feasibility and roof space availability are also assessed.
Documents Required
Applicants typically need:
• Aadhaar Card
• Electricity bill copy
• Bank account details
• Property ownership proof
• Income certificate (if required)
• Passport-size photograph
Verification is conducted by local DISCOM (Distribution Company) authorities.
Application Process
Step 1: Online Registration
Visit the official national solar portal or respective state electricity board website.
Step 2: Submit Consumer Details
Enter electricity connection number and personal details.
Step 3: Vendor Selection
Choose an approved solar installation vendor.
Step 4: Installation & Inspection
System is installed and inspected by DISCOM officials.
Step 5: Subsidy Disbursement
Subsidy amount is credited directly to the beneficiary’s bank account.
For state-level free electricity unit schemes, eligible consumers automatically receive bill adjustments without separate application in many cases.
FAQs
How many free units are provided under the scheme?
Under rooftop solar programs, households can offset up to 300 units per month depending on system capacity.
Is the subsidy credited directly?
Yes, for solar schemes, the subsidy is transferred directly to the beneficiary’s bank account.
Can renters apply?
Generally, property ownership is required for rooftop solar benefits.
Final Thoughts
India’s Free Electricity Schemes, particularly rooftop solar initiatives like PM Surya Ghar: Muft Bijli Yojana, mark a significant step toward affordable and sustainable energy access. By combining financial subsidies with renewable infrastructure, the government is reducing household expenses while accelerating the clean energy transition.
As energy costs continue to rise, these initiatives offer both immediate financial relief and long-term economic resilience for millions of households across the country.
