Punjab’s free electricity scheme, providing 300 units monthly, continues to benefit 90% of households, with a new phase focusing on solar integration. The initiative, costing ₹21,909 crore annually, faces financial strain, prompting plans to solarize 80% of agricultural and 100% of domestic feeders by 2047. Recent updates include solar panel distribution to 100,000 low-income households.
Punjab’s Free Electricity Program Expands with Solar Push
In 2022, the Aam Aadmi Party (AAP) government in Punjab, under Chief Minister Bhagwant Mann, launched its ambitious free electricity scheme, offering 300 units per month to every household, translating to 600 units per billing cycle due to the state’s two-month billing system. This initiative, a key poll promise, has transformed the lives of millions, with 90% of Punjab’s 77.46 lakh domestic consumers receiving zero electricity bills in 2023, as per Punjab State Power Corporation Limited (PSPCL) data. The scheme has delivered subsidies worth ₹11,500 crore to domestic users since its inception, alongside ₹10,175 crore for agriculture and ₹2,949 crore for industrial consumers, bringing the total subsidy bill to ₹21,909 crore for the 2024-25 fiscal year.
The surge in beneficiaries has led to a significant increase in domestic connections, with 6.27 lakh new connections added between 2022 and 2024, compared to 5.5 lakh in the two years prior. PSPCL officials attribute this rise partly to “split connections,” where households divide meters to stay within the 300-unit subsidy limit. This trend, particularly prevalent in the south zone including Patiala and Mohali, has raised concerns about the scheme’s long-term sustainability. The state’s power consumption has also spiked, reaching 17,510 million units in 2022-23, with projections for 2024-25 estimating 20,348 million units—a 17% increase over two years.
To address the financial burden, estimated at ₹2,492 crore in pending subsidies from the state government, Punjab has embarked on an innovative solar integration plan. By 2047, the government aims to power 80% of agricultural feeders and 100% of domestic feeders with solar energy. In 2025, the state initiated the CM Punjab Free Solar Panel Scheme, also known as the Roshan Gharana Program, led by Chief Minister Maryam Nawaz Sharif. This scheme targets 100,000 low-income households consuming up to 200 units monthly, offering free solar systems to reduce reliance on the grid. Over 861,000 households applied by the January 5, 2025, deadline, with 94,483 selected for Phase 1 through digital balloting in March. Installations began in late May, with 50,000 systems expected to be operational by July 2025.
The solar initiative is complemented by plans to solarize 75,000 agricultural tubewells and 66 grid substations this fiscal year, adding 264 MW of solar capacity. These projects, eligible for ₹270 crore in central financial assistance, are expected to save ₹148 crore annually by replacing agricultural power with solar energy. The Punjab Energy Development Agency (PEDA) is also advancing renewable energy through initiatives like the PM-KUSUM scheme, which includes plans for 20,000 solar pumps.
Despite its popularity, the free electricity scheme has sparked debate. Critics, including opposition leaders from the Shiromani Akali Dal and BJP, argue that it disproportionately benefits certain consumers while straining PSPCL’s finances. The corporation’s debt stands at ₹17,500 crore, exacerbated by rising subsidy costs. Power engineers have suggested excluding taxpayers and government employees from subsidies to ease the burden. Meanwhile, the state’s decision to end a previous ₹3 per unit subsidy in 2024, introduced by the Congress government, has drawn criticism for increasing costs for consumers exceeding 600 units per billing cycle.
The Punjab government remains committed to the scheme, with Finance Minister Harpal Cheema emphasizing its continuation. The state has also taken steps to strengthen PSPCL, including timely subsidy payments of ₹18,276.74 crore in 2023-24, enabling the corporation to post a profit of ₹804.94 crore. Additionally, the acquisition of a 540 MW thermal plant at Goindwal Sahib for ₹1,080 crore has bolstered power supply capacity, meeting a record demand of 15,293 MW in June 2023.
The integration of solar power and the free electricity scheme reflects Punjab’s dual focus on affordability and sustainability. However, with subsidy costs projected to rise by ₹500 crore annually, experts urge rationalization to ensure long-term viability. The ongoing solar panel distribution and plans for Phase 2 of the Roshan Gharana Program signal a forward-looking approach, but the state must balance populist measures with financial prudence to sustain this transformative initiative.
Disclaimer: This article is based on reports and data from credible sources, including Hindustan Times, India Today, The Indian Express, and Moneycontrol, as well as official announcements from the Punjab government and PSPCL. Information is accurate as of July 3, 2025, and readers are advised to verify details through official channels like pspcl.in or punjab.gov.pk for the latest updates.