Context:
The Union Finance Ministry has mandated a digital-only model for implementing the Pradhan Mantri Surya Ghar Muft Bijli Yojana (PMSGMBY).
- All processes — from consumer validation to installation verification and site feasibility assessment — must now be conducted via the National Portal, eliminating the need for time-consuming physical verification.
Scheme Overview
- Target: Install rooftop solar systems for 10 million households across India.
- Loan Offering: Standard collateral-free loans up to ₹2 lakh, at Repo + 50 basis points.
- Subsidy Disbursement: Direct transfer to the applicant’s savings bank account via the Public Financial Management System (PFMS).
Current Progress (as of March 31, 2025)
- Applications received: 4.1 million
- Installations completed: 1.1 million
- Loan applications submitted: 375,000
- Loans sanctioned: 200,000+
Bank-Wise Loan Sanction Snapshot
| Bank | Applications | Sanctioned Loans |
|---|---|---|
| State Bank of India | 52,348 | 26,685 |
| Punjab National Bank | 100,711 | 22,082 |
| Bank of Baroda | 45,750 | 16,010 |
| Canara Bank | 36,675 | 9,551 |
| Union Bank of India | 28,471 | 19,700 |
Financial and Operational Reforms Proposed
- Performance-Based Vendor Payments: Full subsidies to be disbursed based on vendor ratings.
- New Financial Product: A working capital instrument tailored for rooftop solar vendors.
- Support for CIBIL-Less Applicants: Reforms to ensure access to loans for applicants without credit scores.
- Policy Alignment: Integration of Renewable Finance Obligations and expansion of Priority Sector Lending (PSL).
On-Ground Execution Strategy
- Branch-Level Execution: Training, awareness, and branch-level targets to be strengthened.
- Monitoring: Active involvement of State Level Bankers’ Committees (SLBCs) and District Level Bankers’ Committees (DLBCs).
Technical Challenges Reported
- OTP delays on the PMSGY portal
- Loan option missing post vendor acceptance
- Discom data issues on the Jan Samarth portal
- Suggested Fixes:
- Functionality to change bank details pre-final submission
- Final confirmation popup before submission
