Public Sector Banks Sanction Over ₹10,900 Crore in Solar Home Loans Under PM Surya Ghar Scheme
SDG 7: Affordable & Clean Energy | SDG 13: Climate Action
Institutions: Ministry of Finance | Ministry of New & Renewable Energy
Under the PM Surya Ghar Muft Bijli Yojana (PMSGMBY), more than 5.79 lakh solar rooftop loan applications have been sanctioned by Public Sector Banks (PSBs), amounting to ₹10,907 crore as of September 2025. Several recent enhancements—such as permitting co-applicants, removing capacity-based caps, and simplifying documentation—have been introduced to widen access and ease of funding. The loans, each up to ₹2 lakh, are offered collateral-free, with a six-month moratorium post-disbursement, extended tenors in alignment with electricity-cost savings, and digital sanctioning through the JanSamarth portal integrated with national systems.
These reforms aim to accelerate adoption of distributed solar energy by households, reduce reliance on fossil-fuel electricity, and democratize access to clean energy financing. The scheme also aligns with India’s net-zero targets by enabling decentralised clean power generation at the household level. Further oversight and strategic direction are being coordinated through State-Level Bankers Committees and Lead District Managers under the guidance of the Department of Financial Services and Ministry of NRE.
By scaling affordable solar access through financial instruments, the scheme bolsters decentralized clean energy deployment and contributes directly towards India’s renewable energy targets under national and global commitments.
Relevant Question for Policy Stakeholders:
How can states and utilities ensure grid integration, net-metering fairness, and sustainability of rooftop solar systems backed under this scheme, especially in lower-income areas?
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