SBI tops in Loan Sanctions Under PM Surya Ghar Muft Bijli Yojana

The State Bank of India (SBI) holds the first position in loan sanctions under the PM Surya Ghar: Muft Bijli Yojana. The top solar loan providers in India are led by State Bank of India (1st), followed closely by Canara Bank (2nd) and Punjab National Bank (3rd).

At the Bharat Renewable Energy Summit & Expo 2026 at Bharat Mandapam, New Delhi, public sector banks were recognized by Vice-President Shri C. P. Radhakrishnan for driving maximum credit flow to residential rooftop solar systems.

PM Surya Ghar: Muft Bijli Yojana

PM Surya Ghar: Muft Bijli Yojana is a Government of India scheme launched on February 13, 2024, to promote the installation of rooftop solar panels in residential households across the country.

The scheme aims to provide free electricity of up to 300 units per month to eligible households by encouraging them to generate electricity through rooftop solar systems.

Key Features of the Scheme

Subsidy for Rooftop Solar Installation

The government provides financial assistance to households for installing rooftop solar panels.

For residential consumers in most states, the central government subsidy is:

Eligibility

• The applicant must be an Indian citizen.
• The household must have a valid electricity connection.
• The household should not have previously received a solar panel subsidy under another government scheme.
• The applicant must install an eligible rooftop solar system through an authorised vendor.

Role of Banks in the Scheme

Banks play an important role in implementing the scheme by providing loans to households for installing rooftop solar systems.

Eligible consumers can obtain collateral-free loans at concessional interest rates under the scheme, subject to applicable lending conditions.

Banks such as SBI, Punjab National Bank and other public sector banks provide financing to support residential rooftop solar installations.

Benefits of the Scheme

• Households can generate their own electricity.
• Electricity bills can be significantly reduced.
• Eligible households can receive up to ₹78,000 in central government subsidy.
• It promotes the use of renewable energy.
• It reduces dependence on conventional sources of electricity.
• It supports India’s goal of achieving greater clean energy capacity.