Solar Spending
PM Surya Ghar Yojana spend may cross INR 300 bln in FY27, govt official says
This story was originally published at 16:27 IST on 20 March 2026
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NEW DELHI – Spending under the government's flagship subsidy scheme to encourage solar rooftops – the PM Surya Ghar Muft Bijli Yojana – may reach INR 300 billion-INR 350 billion in 2026-27 (Apr-Mar), exceeding the Budget Estimate of INR 220 billion for the year, a power ministry official said. This would be on the back of strong interest visible amongst eligible beneficiaries, the official said.
"Won't be surprised if the actual spending this year (FY27) is near INR 300 billion," the official told Informist. As per the Budget document for FY27, the government had spent INR 78.18 billion under the scheme in FY25. It had also earmarked INR 200 billion for the scheme in the current financial year, which has now been revised downwards to INR 170 billion.
"Expenditure under such subsidy schemes is usually lower in the initial year because awareness takes time, (it) takes time to put procedures in place," the official said. "But now, there is strong interest and intent among people and all procedures are in place."
The Union Cabinet had approved the scheme in 2024 with a financial outlay of INR 750 billion and an aim to install rooftop solar plants across 10 million households by FY27. Subsidy under the scheme covers up to 60% of the cost tied to 2-kilowatt solar panel installation. It also provides access to collateral-free, low-interest loans at around 7% interest for installing residential rooftop solar systems up to 3 kilowatts.
As of February, rooftop solar installations under the scheme benefitted 3.10 million households, according to government data. End
Reported by Krity Ambey and Shakshi Jain
Edited by Tanima Banerjee
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