In a significant push towards decentralised renewable energy adoption, the Government of India has announced its ambitious target to install rooftop solar power systems in one crore (10 million) households by 2026-27. The initiative is being rolled out under the PM Surya Ghar Muft Bijli Yojana (PM-SGMBY), which was officially launched in February 2024 and is now being implemented across all states and Union Territories.

This massive undertaking aligns with India’s larger strategy to transition towards clean, sustainable, and inclusive energy development, while also providing economic benefits in the form of employment generation, energy independence, and rural empowerment.

Nationwide Rollout of Rooftop Solar: PM-SGMBY

Announced by Union Minister of New and Renewable Energy, Mr. Pralhad Joshi, in the Lok Sabha, the PM Surya Ghar Muft Bijli Yojana is poised to become one of the world’s largest residential solar rooftop programmes. The scheme allocates rooftop solar capacity to each state based on:

• Demand patterns

• State-wise progress

• Implementation readiness

The overarching objective is to ensure affordable, zero-cost electricity access for millions of Indian families, while also enhancing national energy security by reducing dependence on fossil fuels.

By the end of FY 2026-27, the government expects to have met the one crore household milestone, thereby significantly increasing India’s solar capacity footprint in the residential segment.

Madhya Pradesh: A Leading Example

Among all Indian states, Madhya Pradesh has emerged as a frontrunner in renewable energy adoption. As of June 30, 2025, the state had installed a total renewable energy capacity of 11,279.39 Megawatts (MW). The breakdown of Madhya Pradesh's capacity is as follows:

• Solar power: 5,570 MW

• Wind energy: 3,195.15 MW

• Bioenergy: 155.46 MW

• Hydropower: 2,358.71 MW

These figures reflect not just state-level enthusiasm for clean energy, but also the central government’s support through key policies and investments.

PM-KUSUM Scheme: Empowering Farmers Through Solar

In parallel to PM-SGMBY, the government continues to scale up the Pradhan Mantri-Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM). This scheme is geared toward rural and agricultural energy sustainability, helping farmers install solar-powered irrigation pumps, develop solarised farm operations, and reduce reliance on grid-based electricity.

PM-KUSUM is particularly important for low-income and agrarian households, as it enables:

• Income generation from surplus solar power sales

• Reduction in electricity costs

• Minimal environmental impact

Together, PM-KUSUM and PM-SGMBY form a comprehensive decentralised solar strategy that brings economic, environmental, and energy benefits to India’s heartland.

Employment Generation Through Renewable Energy

India’s clean energy transition is also proving to be a major employment generator. According to studies conducted by the Council on Energy, Environment and Water (CEEW) and The Energy and Resources Institute (TERI), nearly 13 lakh employment opportunities are anticipated in the renewable energy sector by June 2025.

These employment opportunities are being facilitated through dedicated skill development programmes operated under the Ministry of New and Renewable Energy. These include:

• Suryamitra – focusing on solar technicians

• Vayumitra – for wind energy technicians

• Jal-urja Mitra – for hydro-based renewable training

Under these schemes, over 31,829 local youth and technical professionals have already been trained and placed, supporting both employment goals and technical implementation of projects.

Solar Parks and Ultra-Mega Projects: Boosting Grid-Scale Power

In addition to rooftop and decentralised solar systems, the government is also advancing large-scale solar parks and ultra-mega solar power projects. Under the Scheme for Development of Solar Parks, eight such projects have been sanctioned in Madhya Pradesh, with a combined capacity of 4,248 MW.

These parks are designed to:

• Provide plug-and-play infrastructure

• Reduce project development timelines

• Facilitate ease of doing business for developers

By bundling land access, transmission connectivity, and grid assurance into a single zone, solar parks offer cost and time efficiency critical to scaling up grid-level solar capacity.

Why Rooftop Solar?

The push for rooftop solar installation is driven by a variety of practical and strategic considerations:

• Decentralised energy access reduces transmission losses and enhances reliability.

• Household-level solar generation helps lower monthly electricity bills.

• Urban and rural inclusion through state-led implementation fosters energy equity.

• Reduction of peak demand pressures on central grids.

• Acceleration towards India’s Nationally Determined Contributions (NDCs) under the Paris Agreement.

Additionally, rooftop solar contributes significantly to energy democratisation, giving citizens direct control over energy production and consumption.

Challenges and Policy Response

While the roadmap is promising, several implementation challenges remain:

• Financing gaps for upfront installation costs

• Awareness and trust issues among rural beneficiaries

• Variations in state-level administrative efficiency

• Grid integration challenges for decentralized inputs

To address these issues, the central government is working closely with:

• State nodal agencies

• Public and private discoms (distribution companies)

• Micro-finance and banking institutions

• Civil society organisations

In addition, subsidies under PM-SGMBY are designed to lower financial barriers for adoption, particularly for marginalised and economically weaker households.

Looking Ahead: India’s Clean Energy Vision

The rooftop solar target of 10 million households by FY 2026-27 under PM-SGMBY is a cornerstone of India’s long-term energy strategy, complementing its goal of achieving 500 GW of non-fossil fuel-based energy capacity by 2030.

Alongside this, ongoing efforts in solar park development, rural solarisation through PM-KUSUM, and capacity-building through employment training schemes ensure that India’s clean energy transformation is inclusive, scalable, and sustainable.

By integrating rooftop solar into mainstream energy planning, India is not only reducing carbon emissions but also empowering its citizens to become participants in the energy economy, transforming them from consumers to producers.

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