Sudhir SinghUpdated on June 19, 2026
Launched on 15 February 2024, PM Surya Ghar Muft Bijli Yojana is the most ambitious rooftop solar scheme India has ever rolled out. The target is to install rooftop solar systems on 1 crore households across the country, giving each participating family free electricity up to 300 units per month while also cutting India’s dependence on coal-based power. With a total outlay of Rs. 75,021 crore, this is one of the largest direct-to-citizen energy schemes the central government has ever launched.
What the Scheme Actually Gives You
Unlike many schemes that promise vague long-term benefits, PM Surya Ghar has a very direct value proposition: install solar panels on your roof, generate your own electricity, and the government pays a large chunk of the installation cost upfront as subsidy. If your household consumption stays within the system’s generation capacity, your electricity bill effectively drops to zero for that portion of usage.
Subsidy Amount by System Size
| System Capacity | Central Subsidy | Suitable For |
|---|---|---|
| 1 kW | Rs. 30,000 | Households consuming 0-150 units/month |
| 2 kW | Rs. 60,000 | Households consuming 150-300 units/month |
| 3 kW or above | Rs. 78,000 (capped) | Households consuming 300+ units/month |
The subsidy is calculated at Rs. 18,000 per kW for the first 2 kW and Rs. 9,000 per kW for the next 1 kW, with the total subsidy capped at Rs. 78,000 regardless of how large a system you eventually install. A typical 3 kW system costing around Rs. 1.5 lakh to Rs. 1.8 lakh before subsidy ends up costing the household roughly Rs. 70,000 to Rs. 1 lakh after the subsidy is applied.
Who Is Eligible?
- The applicant must be an Indian citizen who owns the residential property where the solar system will be installed.
- The house must have a suitable, unshaded rooftop space to install solar panels.
- The household must have a valid electricity connection in their own name.
- The household should not have already availed a subsidy for rooftop solar under any other scheme for the same connection.
There is no income ceiling for this scheme; both economically weaker households and middle-class families can apply, though the actual financial benefit is felt more strongly by households with moderate to high monthly electricity consumption.
How Net Metering Works
Your solar panels generate electricity during the day, often more than your household uses at that moment. The excess power flows back into the grid through a net meter, which records both what you draw from the grid and what you feed back into it. At the end of the billing cycle, you are charged only for the net electricity consumed (what you drew minus what you exported). If you generate more than you consume across the month, the surplus units may be carried forward or, depending on state DISCOM rules, compensated through a feed-in tariff.
Step-by-Step: How to Apply for PM Surya Ghar Yojana
- Go to pmsuryaghar.gov.in.
- Click “Apply for Rooftop Solar” on the home page.
- Register using your state, electricity distribution company (DISCOM), and consumer number from your electricity bill.
- Verify your mobile number with OTP.
- Fill out the application form with your roof details, approximate area available, and desired system capacity.
- Submit the application. Your DISCOM reviews and provides technical feasibility approval based on your local grid capacity and roof suitability.
- Once feasibility is approved, choose any vendor from the empanelled list of solar installers registered with the national portal for your state.
- The vendor visits your home, finalises the design, and installs the solar panels, inverter, and wiring as per the approved capacity.
- After installation, submit plant details on the portal for inspection.
- The DISCOM conducts an inspection and, if everything checks out, issues a net metering certificate.
- Generate your commissioning certificate on the portal, which is the final trigger for subsidy release.
- The subsidy amount is transferred directly to your bank account within 30 days of commissioning, through Direct Benefit Transfer.
Documents Required
- Aadhaar card of the applicant.
- Latest electricity bill showing the consumer number and connection details.
- Bank account passbook copy (Aadhaar-linked, for direct subsidy transfer).
- Property ownership proof or No Objection Certificate if the property is rented (rare cases, primarily owner-occupied homes are eligible).
- Passport-size photograph.
Additional Loan Facility
For households that cannot pay the upfront balance even after subsidy, the scheme provides access to a collateral-free loan facility. Banks participating in the scheme offer loans at concessional interest rates (around 7% per annum in many cases) for the remaining cost after subsidy, repayable over a tenure that allows the monthly EMI to roughly match or stay below the electricity bill savings, making the transition close to cash-flow neutral for many households.
State-Level Additional Subsidies
Several states have layered their own additional subsidy on top of the central government’s contribution to further reduce the homeowner’s out-of-pocket cost. For example:
| State | Additional State Subsidy (Approximate) |
|---|---|
| Uttar Pradesh | Up to Rs. 15,000 additional for select consumer categories |
| Gujarat | Strong DISCOM support infrastructure, faster processing |
| Rajasthan | Additional subsidy components for BPL category households |
Check your state’s energy department website or the PM Surya Ghar portal for any current state-specific top-up subsidy applicable in your area, as these are revised periodically.
How Much Can You Actually Save Per Year?
A typical household consuming around 300 units per month with a 3 kW solar installation can expect to generate enough power to cover most or all of their consumption, depending on sunlight availability in their region and roof orientation. With average electricity tariffs ranging from Rs. 6 to Rs. 8 per unit in most cities, a household previously paying Rs. 1,800 to Rs. 2,400 per month could see this bill drop to near zero, translating to annual savings of Rs. 20,000 to Rs. 28,000, on top of the one-time subsidy already received during installation.
Maintenance and System Lifespan
Rooftop solar systems installed under empanelled vendors typically come with a manufacturer’s warranty of 10 to 25 years on solar panels (varies by component) and a shorter warranty period on the inverter, usually 5 to 10 years. Basic maintenance involves periodic cleaning of the panels to remove dust buildup, which significantly affects generation efficiency, especially in dusty or coastal areas. Most installers offer an annual maintenance contract option for an additional fee.
Frequently Asked Questions
What happens if my roof does not get enough sunlight due to shading from nearby buildings or trees?
The technical feasibility check conducted by your DISCOM during the application process specifically evaluates shading and sun exposure. If your roof is significantly shaded for most of the day, the assessment may recommend a smaller system, suggest panel relocation to an unshaded section of the roof, or in extreme cases, indicate the installation is not viable at your specific location. Discuss alternatives like elevated mounting structures with your chosen vendor if shading is a partial issue.
Can I choose any solar installer or only government-approved vendors?
You must choose from the list of vendors empanelled on the national PM Surya Ghar portal for your state. This ensures quality standards, proper net metering integration with your DISCOM, and most importantly, eligibility for the subsidy disbursement, which is processed only for installations done through empanelled vendors using approved equipment.
How long does the entire process take from application to subsidy credit?
The timeline varies by DISCOM efficiency and vendor availability, but a reasonable estimate is 30 to 60 days from application submission to subsidy credit, assuming no delays in feasibility approval, installation scheduling, or inspection. Areas with high application volume or limited DISCOM staff for inspections may experience longer waiting periods, particularly during peak application seasons right after major scheme announcements.
Is the subsidy a one-time payment or does it reduce the price upfront at purchase?
The subsidy is disbursed as a Direct Benefit Transfer to your bank account after the system is installed, inspected, and the net metering certificate is issued. You typically need to pay the vendor the full system cost (or the loan-financed portion) at the time of installation, and the subsidy amount is reimbursed to you afterward, rather than being deducted upfront from the purchase price, though some vendors may offer to structure payment in a way that accounts for the expected subsidy timing.
📩 If you notice any incorrect data in this guide or wish to share additional information, please write to us at info@indiansouls.in.
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