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Government Plans Utility-Led Rooftop Solar Push for Rural Households

The Indian government is preparing a new policy to boost household-level adoption of rooftop solar systems by enabling power utilities to install and finance the systems, especially for low-consumption households in villages and small towns. According to sources cited by CNBC-TV18, this initiative aims to accelerate the rollout of the PM Surya Ghar Muft Bijli Yojana and expand solar energy penetration in rural India.

Under the proposed model, power utilities would front the investment for installing grid-connected rooftop solar panels. Households will initially pay regular tariffs for power consumption. Once the utility recovers its investment, eligible consumers (using up to 150 units of power per month) would receive electricity for free. Any surplus power would be fed into the grid, improving overall system efficiency.

This model seeks to aggregate demand through power utilities, making project execution more scalable and financially viable, while also simplifying the process for end users. The scheme is expected to reduce household power bills, expand rural clean energy access, and support the government’s broader renewable energy targets.

Formal policy details and rollout timelines are expected soon as part of the government’s continuing focus on inclusive energy transition.