“Uttar Pradesh’s ambitious solar initiative under PM Surya Ghar Yojana is transforming households with hefty subsidies up to ₹1.08 lakh for 3 kW solar panels. Over 1.8 lakh homes are already powered, slashing electricity bills and boosting clean energy adoption. The scheme offers low-interest loans and aims to solarize one crore homes, reducing fossil fuel reliance.”
Uttar Pradesh Embraces Solar with Generous Household Subsidies
PM Surya Ghar Yojana Drives Solar Adoption
Uttar Pradesh is witnessing a solar revolution under the PM Surya Ghar: Muft Bijli Yojana, a ₹75,021-crore central scheme launched in February 2024. As of August 2025, over 1.8 lakh households in UP have installed rooftop solar systems, with ₹1,180 crore in subsidies disbursed. The scheme aims to solarize one crore homes nationwide, offering up to 300 units of free electricity monthly.
Substantial Subsidies for Households
The central government provides subsidies covering 60% of costs for 2 kW systems (₹60,000) and 40% for 2-3 kW systems, capped at ₹78,000 for 3 kW. UP supplements this with an additional ₹30,000, totaling ₹1.08 lakh for a 3 kW system. These incentives make solar affordable, with subsidies credited within a week post-installation.
Low-Interest Loans Ease Financial Burden
Households can access collateral-free loans at 7-9% interest through 12 public sector banks, covering costs beyond subsidies. A 3 kW system, costing around ₹1.8 lakh, becomes viable with these loans, enabling families to generate 300 units monthly and sell surplus power to the grid via net metering.
Reducing Electricity Bills and Fossil Fuel Dependency
The scheme helps households save ₹15,000-18,000 annually by reducing reliance on grid electricity. Net metering allows users to offset bills by selling excess power, easing the load on debt-ridden distribution companies. This shift also supports India’s clean energy goals by cutting fossil fuel use.
Streamlined Application Process
Interested households register on the National Portal for Rooftop Solar (pmsuryaghar.gov.in), selecting vendors and system sizes. The portal offers tools like benefits calculators and vendor ratings. Eligible applicants must be Indian citizens with suitable roofs and valid electricity connections, ensuring accessibility for middle and low-income families.
UP’s Solar Momentum
UP has seen over 5 lakh registrations since the scheme’s launch, reflecting strong public interest. The state’s proactive approach builds on Gujarat’s success, where similar subsidies boosted rooftop solar to 3,455 MW across 7-10 lakh households by March 2024. UP aims to replicate this model, fostering job creation in solar installation and maintenance.
Challenges and Limitations
Despite the push, challenges remain. The scheme does not fund battery backups, meaning power cuts affect solar households. Systems above 3 kW receive no central subsidy, though many opt for 4-5 kW setups for higher output. Limited awareness and complex grid integration processes may also hinder adoption in rural areas.
Disclaimer: This article is based on information from government announcements, news reports, and posts on X. Data is sourced from credible outlets like The Hindu, Economic Times, and the Ministry of New and Renewable Energy. Subsidy amounts and registration figures are accurate as of August 2025 but subject to change. Readers are advised to verify details through official portals like pmsuryaghar.gov.in.