Public-sector banks turn down nearly four in 10 rooftop solar applications

Over 3 lakh applications rejected under PM-Surya Ghar Muft Bijli Yojana; 1.6 million rooftop solar installations completed so far, with CIBIL score cited as key filter

Public-sector banks (PSBs) have rejected 305,667 applications under the PM Surya Ghar: Muft Bijli Yojana out of a total of 803,515 applications received since its launch in February 2024 until August 2025, translating into a rejection rate of 38.03 per cent, according to a senior government official. 

The scheme, launched in February 2024 with a total outlay of ₹75,021 crore to support rooftop solar installations and provide up to 300 units of free electricity, has so far seen PSBs sanction ₹8,417.5 crore, with a total of 447,736 applications sanctioned. Apart from PSBs, private banks, regional rural banks, and non-banking financial