PM Surya Ghar sees 40 lakh installations so far: Local cell mandate may hit solar scheme

PM Surya Ghar: Muft Bijli Yojana has surpassed 40 lakh rooftop solar installations across India, making it one of the fastest-scaling residential solar progr...

What Happened

PM Surya Ghar: Muft Bijli Yojana has surpassed 40 lakh rooftop solar installations across India, making it one of the fastest-scaling residential solar programs globally.
The scheme recorded its highest-ever single-month addition of 3.16 lakh installations in May 2026, compared to an earlier monthly average of ~7,000.
Over ₹22,750 crore in subsidies have been disbursed so far, with ₹2,743 crore disbursed in May 2026 alone.
More than 17 lakh households have reported zero electricity bills following installation.
A new Domestic Content Requirement (DCR) mandate effective June 1, 2026 — requiring solar modules to use cells from ALMM List II (domestically manufactured cells only) — poses a supply risk: India's certified domestic solar cell capacity covers under 13% of total module production capacity, threatening project pace and raising costs.
The scheme now targets 75 lakh installations by December 2026 and 1 crore by 2027.

Static Topic Bridges

PM Surya Ghar: Muft Bijli Yojana — Scheme Overview

Launched in February 2024, PM Surya Ghar: Muft Bijli Yojana is a central government scheme under the Ministry of New and Renewable Energy (MNRE) to provide rooftop solar systems to 1 crore (10 million) residential households by 2027. The scheme offers:

Free electricity up to 300 units/month for households with up to 3 kW systems (subsidized capacity).
A central subsidy of ₹30,000–₹78,000 per household depending on system size (1 kW to 3 kW), disbursed via Direct Benefit Transfer (DBT).
Implementation through Distribution Companies (DISCOMs) and the Utility-Linked Aggregation (ULA) model for mass adoption.

~65 lakh applications currently in the pipeline.
30 lakh installations already planned under the ULA model across states.
The scheme is closely linked to PM KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) — which targets solar energy for agriculture (irrigation pumps and farm-level generation).
Implementing agency: MNRE coordinates with state DISCOMs and registered vendors.
Over 15,000 households were connected in a single day — a record under the scheme.

Connection to this news: The 40 lakh milestone demonstrates rapid adoption, but the new DCR cell mandate threatens to create a supply bottleneck that could slow future installation pace.

Domestic Content Requirement (DCR) and Make in India in Solar

The Domestic Content Requirement (DCR) is a policy tool under India's renewable energy framework that mandates use of domestically manufactured components in government-supported solar projects, in line with the Make in India initiative. Under the DCR, solar modules used in government-linked projects must have solar cells manufactured in India, in addition to Indian module assembly. The DCR is governed through the Approved List of Module Manufacturers (ALMM) maintained by MNRE.

ALMM List I: Approved solar module manufacturers (module assembly in India).
ALMM List II: Approved solar cell manufacturers (domestic cell fabrication — a more stringent requirement).
From June 1, 2026, PM Surya Ghar, PM KUSUM, open access, and net-metered installations must use modules with cells from ALMM List II.
India's certified domestic solar cell manufacturing capacity covers under 13% of total module production capacity — creating a supply-demand mismatch.
Using non-DCR panels under PM Surya Ghar means foregoing up to ₹78,000 in subsidy — a significant disincentive for households but a compliance risk for installers and DISCOMS.
The DCR policy has historically faced WTO scrutiny (the US challenged India's earlier DCR under the Jawaharlal Nehru National Solar Mission at WTO, with India losing in 2016) — but India has maintained domestic content policies through ALMM mechanism.

Connection to this news: The article highlights the tension between India's ambition to rapidly scale residential solar adoption and its industrial policy goal of building a domestic solar cell manufacturing ecosystem — both valid objectives that DCR creates friction between.

PM KUSUM and the Broader Solar Ecosystem

PM KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) was launched in 2019 to provide solar energy solutions to farmers. It has three components: - Component A: Grid-connected solar power plants (up to 2 MW) by farmers on barren/uncultivable land. - Component B: Standalone solar-powered agriculture pumps. - Component C: Solarization of existing grid-connected agriculture pumps.

PM KUSUM targets 30.8 GW of decentralized solar capacity.
Both PM Surya Ghar and PM KUSUM use the DCR framework — any supply crunch in domestic solar cells affects both schemes simultaneously.
India's total installed solar capacity exceeded 100 GW in early 2024 (utility-scale + rooftop combined); rooftop solar remains a small fraction (~15 GW).
The National Solar Mission (component of the National Action Plan on Climate Change, NAPCC 2008) set the original rooftop solar targets that PM Surya Ghar builds upon.

Connection to this news: PM Surya Ghar's DCR mandate bottleneck also affects PM KUSUM rollout, showing systemic supply chain risks in India's distributed solar ambitions.

Key Facts & Data

Scheme launched: February 2024
Installations as of June 2026: Over 40 lakh (4 million) households
Target: 75 lakh by December 2026; 1 crore (10 million) by 2027
Highest monthly addition: 3.16 lakh installations (May 2026)
Total subsidies disbursed: Over ₹22,750 crore (including ₹2,743 crore in May 2026)
Households with zero electricity bill: Over 17 lakh
Central subsidy: ₹30,000–₹78,000 per household (1 kW to 3 kW systems)
DCR cell mandate: Effective June 1, 2026 — ALMM List II cells mandatory
India's domestic solar cell capacity: Under 13% of module production capacity
Applications in pipeline: Over 65 lakh
Ministry: Ministry of New and Renewable Energy (MNRE)
Implementation model: ULA (Utility-Linked Aggregation) through DISCOMs
India's total installed solar capacity: Exceeded 100 GW (early 2024)