Public Sector Banks Approve Over 579,000 Loans Under PM Surya Ghar

The approved loans are worth ₹109.07 billion

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Public sector banks (PSBs) have approved more than 579,000 loan applications worth ₹109.07 billion (~$1.23 billion) under the PM Surya Ghar: Muft Bijli Yojana, as of September 2025, according to the Ministry of Finance.

Progress of Loans Sanctioned by PSBs

 

The Ministry said that the Surya Ghar program streamlines credit delivery processes, facilitates collateral-free, affordable loans at lower interest rates, and simplifies financing through PSBs.

The loans are processed through the JanSamarth Portal, which is integrated with the Surya Ghar program’s national portal.

The model loan program under Surya Ghar offers multiple benefits, including loans of up to ₹200,000 (~$2,252.62) without collateral, with a longer repayment tenor, a six-month moratorium from disbursement, lower margin contributions by applicants, and a self-declaration-based digital sanction process.

The Surya Ghar program targets installing rooftop solar panels on 10 million households by 2027. Approximately two million rooftop solar systems have been installed under the Surya Ghar program so far. Approximately half of the households received zero bills, and many also earned money by selling excess electricity.

India added 1,618 MW of rooftop solar capacity in the second quarter (Q2) of 2025, according to Mercom India’s Q2 2025 India Rooftop Solar Market Report. The installations grew 121% year-over-year (YoY).

In Q2 2025, rooftop solar capacity additions were led by the residential segment, contributing over 74% with most of this capacity driven by the rooftop solar systems installed under the PM Surya Ghar.

In September this year, the government approved a power utility-led model under the PM Surya Ghar: Muft Bijli Yojana, which will rapidly increase rooftop solar installations, said Union Minister of New and Renewable Energy Pralhad Joshi.

Within a month of rolling out the demand-driven utility-led model, installations are expected to reach five million, the minister said.

The launch of the utility model was first announced by Union Minister of New and Renewable Energy Pralhad Joshi at the Mercom India Renewables Summit 2025, where he said that the government would introduce a model to enable households without suitable rooftop space to benefit from the program.

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