Tue, May 05, 2026
Gujarat has achieved the top rank in the “PM Surya Ghar: Free Electricity Scheme,” a flagship scheme by the Narendra Modi government to promote renewable energy. According to data from the Ministry of New and Renewable Energy (MNRE), out of 60.37 lakh applications received nationwide, 5.35 lakh were from Gujarat, and the state has installed rooftop solar systems in 6.03 lakh households, achieving a capacity of 1,603 MW.
Bhakti Shamal, Joint Secretary of the Energy and Petrochemicals Department, stated in a resolution that the Central government has invested Rs 75,021 crore in this project.
The main aim of the scheme is to utilise the vast rooftop solar potential available in Gujarat, install green energy in urban areas, and promote on-site energy generation to reduce the load on the grid. The project has already been launched.
Major Financial Benefits for Electricity Consumers
Central Financial Assistance (CFA): Consumers are eligible for subsidies as per the guidelines and standards of the Ministry of New and Renewable Energy (MNRE).
State Assistance (Gujarat): As a significant relief, the state government will provide a discount of Rs 2,950 on meter, meter testing, meter box, and connectivity charges for new rooftop solar systems up to 6 kW.
Even if the sanctioned load of a consumer exceeds 6 kW but they install a solar system up to 6 kW, they are eligible for this discount. Any charges beyond this amount will be borne by the consumer.
Net Metering and Surplus Power Purchase Rate
The scheme will operate based on net metering according to Gujarat Electricity Regulatory Commission (GERC) rules. Customers can also earn money by selling excess electricity produced. If the electricity sent to the grid during the billing cycle exceeds consumption, the DISCOM will purchase the surplus.
For the first five years, the rate for surplus power is fixed at Rs 2.25 per unit. After the initial five years, the purchase rate will be 75 per cent of the simple average of tariffs determined through competitive bidding for non-park-based solar projects by GUVNL over the preceding six months.
State Targets and Progress
A top official of the Energy and Petrochemicals Department said that Gujarat has decided to install 10 lakh rooftop solar systems (RTS) across residential areas of the state.
As of August 2025, out of 5.35 lakh applications in the state, 4.27 lakh installations have been completed, covering 6.03 lakh households. The total installed capacity under the scheme is 1,603.58 MW, and subsidies amounting to Rs 3,215 crore have been provided.
Implementation Nodal Agencies
Gujarat Energy Development Corporation Limited (GUVNL) has been appointed as the nodal agency for implementation through all state DISCOMs. Gujarat Energy Development Agency (GEDA) will act as the nodal agency for government buildings.
The project timeline and other rules and conditions will follow the MNRE guidelines for the PM Surya Ghar scheme.
National Progress
To promote sustainable development and public welfare, Prime Minister Narendra Modi launched this scheme last year. A total investment of Rs 75,021 crore is being made, aiming to provide up to 300 units of free electricity per month to 1 crore households.
As of the latest August data, 60.37 lakh applications have been received nationwide, out of which 14.97 lakh installations have been completed, covering 18.95 lakh households with an installation capacity of 5,614.31 MW. The Central government has provided Rs 10,701 crore in subsidies.
Key Features of the Scheme
Collateral-free loans up to Rs 2 lakh at 6.75 per cent interest are available through 12 public sector banks (PSBs), making rooftop solar installations more affordable.
With simple loans, a 3 kW rooftop solar system can be installed with an initial investment of just Rs 15,000, offering returns of up to Rs 15 lakh over 25 years. The loan application process is fully automated and online.