The Government of India has launched an ambitious initiative in 2025 called the Green Credit Programme (GCP) — a transformative policy designed to reward individuals, communities, and organizations for taking measurable actions toward environmental conservation. One of its most impactful avenues for earning credits is solar rooftop installation under the PM Surya Ghar: Muft Bijli Yojana.
The new Green Credit Scheme 2025 merges India’s clean energy goals with a financial incentive framework, allowing citizens to earn Green Credits (GCs) — tradable or redeemable rewards — for installing solar panels, saving energy, or reducing carbon emissions. In essence, the government is making sustainability not just a moral responsibility but also a profit-generating opportunity.
This article provides an in-depth guide to the Green Credit Programme 2025, explaining how you can earn, track, and redeem environmental credits simply by embracing solar energy at home.
What Is the Green Credit Programme 2025?
Introduced by the Ministry of Environment, Forest and Climate Change (MoEFCC) and aligned with the National Mission for Green India, the Green Credit Programme rewards activities that contribute to India’s net-zero mission.
Initially launched in 2023 under the Environment (Protection) Act, 1986, the program took full shape after revised Green Credit Rules were notified on August 29, 2025. The new framework now recognizes broader sustainability practices — including solar adoption, water conservation, waste management, energy efficiency upgrades, and biodiversity restoration — as qualifying actions for rewards.
Core Objective
- Reward eco-conscious citizens and enterprises for reducing environmental impact.
- Create an incentive-driven green economy using market mechanisms similar to carbon trading.
- Encourage mass participation in sustainable energy practices, especially rooftop solar generation.
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How Green Credits Work
Definition
A Green Credit is a measurable unit representing an individual’s or organization’s verified contribution toward sustainability. Unlike carbon credits, which directly account for greenhouse gas reductions, green credits cover a wider spectrum of eco-actions such as energy conservation, waste management, tree plantation, and renewable adoption.
Issuing Authority
The program is administered through a Central Green Credit Registry Portal managed by MoEFCC. All approved actions are verified using digital audits, satellite imagery, and DISCOM solar data before credits are issued.
Key Sectors Covered
As per the latest Green Credit Rules 2025, credits are granted for:
- Planting and preserving trees (with >5-year survival).
- Water conservation and rejuvenation of wetlands.
- Restoration of degraded land and forests.
- Adoption of renewable energy technologies (especially rooftop solar).
- Sustainable agriculture practices.
- Waste management and recycling.
- Reduction in fossil fuel use via electric mobility or solar heating systems.
Earning Green Credits for Solar Panel Installation
Among all the methods, rooftop solar energy generation is one of the fastest routes to earn green credits. Citizens adopting solar systems for domestic or commercial use make measurable contributions to emission reduction and clean power generation.
Eligibility
- Homeowners, housing societies, SMEs, and commercial buildings.
- Solar systems installed under net metering or off-grid setups.
- Minimum installation capacity of 1 kW.
- Must comply with MNRE-registered equipment and be linked to the DISCOM solar meter.
Credit Calculation Methodology
Green Credits for rooftop solar are calculated based on the amount of clean electricity generated annually and the CO₂ emissions avoided.
- 1 Green Credit = 1 tonne of CO₂ avoided per year.
- Roughly, every 1 kW solar system earns 1.4 Green Credits annually.
Example:
- A 3 kW rooftop solar system generates ~4,500 kWh/year.
- This offsets approximately 3 to 4 tonnes of CO₂, equivalent to 4 Green Credits per year.
These credits are recorded in the government’s official Green Credit Registry and can later be redeemed, traded, or offset against environmental levies.
Integration with PM Surya Ghar: Muft Bijli Yojana
The PM Surya Ghar Yojana, launched in 2024, provides subsidies up to ₹78,000 for eligible rooftop installations. In 2025, the Green Credit Scheme complements this initiative by adding performance-based rewards after installation.
| Category | Incentive Type | Approximate Value |
| Up to 3 kW | ₹78,000 solar subsidy + 4 Green Credits/year | ₹20,000–₹25,000 yearly benefit |
| 5 kW | ₹1.2 lakh savings + 7 Green Credits/year | ₹35,000+ benefit |
| >10 kW (Housing Societies) | 15 Credits/year + 20–30% tax rebate | ₹50,000+ annual value |
Essentially, citizens first receive financial subsidy under MNRE and then environmental credits under MoEFCC, turning every rooftop into a long-term asset that earns both money and reputation.
How to Apply for the Green Credit Programme 2025
Step 1: Register on the Green Credit Portal
Visit www.moefcc-gcp.in and click “Register for Green Digital Id (G-ID)”. Use your Aadhaar or PAN to create an authenticated green identity.
Step 2: Select Your Action
Choose “Renewable Energy (Solar Adoption)” as your green activity. Upload rooftop solar installation details — capacity (kW), commission date, and DISCOM meter number.
Step 3: Verification
The portal auto-verifies data using MNRE and electricity board (DISCOM) databases. Site inspections are done digitally for small systems or physically for setups above 50 kW.
Step 4: Credit Approval
- Verified data generates a certificate of emission reduction (CER).
- Each certificate equals one tonne of CO₂ saved = 1 Green Credit.
- Credits appear in your digital green wallet within 30–60 days.
Step 5: Redeem or Trade
Options available after issuance:
- Redeem with participating government programs for property tax discounts, green home labels, or EV charger subsidies.
- Trade via authorized market channels similar to carbon trading (for large-scale projects).
- Offset against corporate ESG (Environmental, Social, Governance) or CSR obligations.
Tax and Policy Benefits
The government encourages widespread participation through layered incentives:
- Income Tax deductions under Section 80-IA for renewable energy projects.
- Property tax rebates for certified solar-powered homes (varies by municipality).
- Priority for Green Home Certification under Bureau of Energy Efficiency (BEE).
- Loan interest rebates up to 1.5% for registered Green-Credit participants via PSBs like SBI, PNB, and Bank of Baroda.
Major cities like Bengaluru, Pune, and Delhi NCR have already introduced municipal tax reductions for properties registered under both solar and GCP frameworks.
Difference Between Carbon Credits and Green Credits
| Basis | Carbon Credit | Green Credit |
| Definition | Certifies reduction in greenhouse gas emissions | Rewards broader environmental actions, including solar energy |
| Coverage | Only CO₂ or GHGs | Energy, biodiversity, water, waste, and land restoration |
| Tradability | Globally tradable | Non-tradable for individuals, limited corporate offset use |
| Validity | Issued annually | Valid for five years with verification |
| Primary Authority | UNFCCC or voluntary market | MoEFCC (India’s national mechanism) |
Real-World Impact and Examples
Case 1: Delhi NCR Households
In early 2025, 6,000 homes with rooftop solar systems were linked to the Green Credit digital registry. Participants collectively earned over 22,000 Green Credits, translating into ₹5 crore worth of benefits, including municipal fee exemptions and CSR trade-offs for local industries.
Case 2: Gujarat Smart Housing Societies
Cooperative societies in Ahmedabad adopted 10–20 kW shared solar systems. They not only earned credits under GCP but also leased their credits to nearby companies required to meet ESG mandates, creating a secondary income source.
Case 3: Maharashtra’s Dual Banking Model
The Pune Municipal Corporation partnered with Bank of Maharashtra to enable digital Green Credit wallets, where homeowners receive monthly updates on saved energy and credits earned, improving transparency and participation.
Broader Environmental Scope
The government plans to extend the credits to additional categories by 2026, including:
- Solar EV Charging Infrastructure (1 credit per installed unit).
- Battery Energy Storage Systems (BESS).
- Community Solar Gardens managed by housing cooperatives.
- Solar Desalination Plants in coastal villages.
This broader inclusion aligns with India’s net-zero 2070 pledge, ensuring every citizen can contribute measurable value to environmental recuperation.
Monitoring & Verification
Blockchain-Enabled Tracking
Green Credits are monitored via a secure, blockchain-based system for tamper-proof tracking. This ensures:
- Authentic credit claims.
- Transparency for private buyers and public auditors.
- A verifiable trail for future sustainability reporting (ESG).
Smart Meter Synchronization
Each participant’s solar meter data syncs with the registry, allowing automatic calculation of credits without manual input.
Advantages of Participating in the Green Credit Programme
- Direct Financial Rewards: Receive tax benefits, rebates, and savings on electricity bills.
- Recognition: Earn Green-Building or Eco-Home certification tags.
- Ease of Registration: Fully online system through Green Credit Portal.
- Social Responsibility: Contribute actively to national sustainability.
- Long-Term Asset Creation: Both credits and solar systems add property value.
- Reduced Power Costs: Combine subsidy and credits to minimize monthly expenses.
Common Questions (FAQs)
1. What is the primary goal of the Green Credit Programme (GCP)?
The GCP encourages individuals and organizations to take measurable, eco-positive actions. Rewards come in the form of Green Credits that recognize real environmental benefits.
2. How does solar installation qualify for credits?
When you install rooftop solar panels, you reduce dependency on fossil-fuel-based electricity. The amount of CO₂ avoided is measured and converted into Green Credits.
3. Are these credits tradable like carbon credits?
At the household level, no — credits remain non-tradable. For large installations and corporations, limited offset trading is allowed under CSR or ESG compliance filing.
4. How many credits can a household earn annually?
A standard 3 kW system can earn around 3–4 Green Credits per year, depending on generation levels.
5. Can credits expire?
Yes. Credits remain valid for five years and must be used or redeemed within that period.
6. Is there a cost to apply for verification?
A nominal verification fee (₹200–₹500) applies for home systems below 5 kW.
7. Can rural homes benefit?
Yes. Off-grid and hybrid solar systems in rural areas also qualify for Green Credits and PM Surya Ghar subsidies.
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The Future of Green Credit India 2025–2030
The expansion of the Green Credit system marks India’s transition from subsidy-based support toward a market-based sustainability economy. By 2030, the MoEFCC aims to integrate over 20 crore citizens into GCP through combined schemes in solar, afforestation, and water conservation.
Predictions include:
- 50 million verified household credits issued via digital registry.
- Urban local bodies linking credits to tax rebates and smart city rankings.
- Merging of carbon and green credits into hybrid ESG certificates for global investors.
The initiative represents a monumental shift: the more you conserve, the more you earn.
Conclusion
The Green Credit Scheme 2025 bridges climate action with personal benefit, transforming citizens from consumers of electricity to producers of sustainability. Installing solar panels under MNRE’s PM Surya Ghar and registering with MoEFCC’s Green Credit Portal allows every household to earn verifiable environmental rewards.
By rewarding energy independence, India ensures that each rooftop contributes to its national net-zero dream. In this new green economy, every sunlit terrace becomes a source of income, pride, and planetary progress.