The Ministry of New and Renewable Energy has a different answer: solar for villages where running a power grid just isn’t practical, either technically or financially, The New Solar Power Scheme operates under two larger programmes, PM-JANMAN (Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan) and DAJGUA (Dharti Aaba Janjatiya Gram Utkarsh Abhiyan), targeting Particularly Vulnerable Tribal Groups and other tribal habitations that grid expansion tends to skip over.
The scheme covers the full cost. It funds off-grid solar systems for households that currently have no electricity, solarises Multi-Purpose Centres in PVTG areas, and installs off-grid solar setups in public institutions across identified tribal villages, all through 100% Central Financial Assistance.
How the funding breaks down
Households get up to ₹50,000 each, or the actual installation cost if lower, to set up a 0.3 kW off-grid solar system. That’s meant to cover basic electricity needs for a home that had none before.
Multi-Purpose Centres under the PM-JANMAN component get ₹1 lakh apiece for solar street lighting and electrification. Under DAJGUA, public institutions can claim ₹1 lakh per kW of solar capacity installed, up to a cap of 20 kW per institution.
By 30 June 2026, the government had disbursed ₹57.10 crore in Central Financial Assistance through the scheme.
How far electrification has come
The scheme’s target is ambitious: one lakh un-electrified households identified by the Ministry of Tribal Affairs, plus solar upgrades for 1,500 Multi-Purpose Centres already approved under PM-JANMAN.
Progress so far sits at 11,838 households electrified through off-grid as of 30 June 2026, spread across multiple States.
That’s not the only track running in parallel. The Ministry of Power is handling grid electrification separately through the Revamped Distribution Sector Scheme (RDSS), wherever grid connections actually make sense. Under this programme, ₹521.45 crore worth of projects have been sanctioned across 13 States, backed by ₹331.49 crore in Gross Budgetary Support, aiming to connect 1,39,126 PVTG households to the grid.
That effort has moved faster. As of 24 July 2026, 1,38,620 PVTG households had already been connected, nearly closing out the target.
What the scheme doesn’t cover
Worth noting: this isn’t a scheme for small businesses. The government has been clear that no subsidy currently exists for shopkeepers or commercial establishments looking to install solar panels on their premises. There’s also no separate subsidy scheme being considered for commercial solar adoption among small businesses in tribal regions, at least not at this point.
Key Takeaway: Between the off-grid solar push under PM-JANMAN and DAJGUA and the grid-based electrification happening through RDSS, tribal and PVTG households are getting power through whichever route fits their location best. The RDSS numbers show what’s achievable when grid extension is feasible, while the scheme is picking up the households that grid infrastructure simply can’t reach. Together, they’re closing a gap that’s persisted in some of India’s most isolated communities for decades.
MCQ’s:
1. The New Solar Power Scheme for tribal areas is implemented under which of the following programmes?
- PM-JANMAN
- DAJGUA
- PM-KUSUM
Select the correct answer using the code below:
(A) 1 only
(B) 1 and 2 only
(C) 2 and 3 only
(D) 1, 2 and 3
2. Under the New Solar Power Scheme, eligible households without electricity can receive Central Financial Assistance of up to:
(A) ₹25,000
(B) ₹40,000
(C) ₹50,000
(D) ₹1 lakh
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