The PM Surya Ghar: Muft Bijli Yojana is a Government of India scheme that gives eligible households a central subsidy of up to Rs 78,000 for installing rooftop solar. The subsidy covers 60% of the unit cost for systems up to 2 kW and 40% of the additional cost between 2 kW and 3 kW. It is capped at 3 kW.
The scheme was approved on 29 February 2024 and is set to run until FY 2026-27, so timing matters. This guide explains the subsidy amounts, who can apply, the documents to keep ready and the application steps.
Key Takeaways
- Central subsidy is Rs 30,000 for a 1 kW system, Rs 60,000 for 2 kW and up to Rs 78,000 for 3 kW or higher, at current benchmark prices.
- The scheme is for residential households that own a roof suitable for solar and have a valid electricity connection.
- You register on the national portal, install through a registered vendor, apply for a net meter, and receive the subsidy in your bank account after commissioning.
- The scheme is set to be implemented until FY 2026-27. Confirm the current end date and terms on the official portal before you apply.
- Rules, benchmark costs and any extra state incentives can change, so always verify with your DISCOM or the national portal.
What Is the PM Surya Ghar Muft Bijli Yojana?
PM Surya Ghar: Muft Bijli Yojana is a national rooftop solar scheme. According to the official India.gov.in page, it has an outlay of Rs 75,021 crore and aims to increase the share of rooftop solar and let households generate their own electricity.
At the national level the scheme is run by a National Programme Implementation Agency. At the state level, the electricity distribution companies (DISCOMs) act as State Implementation Agencies. They are expected to provide net meters and handle inspection, commissioning and vendor registration.
How Much Subsidy Do You Get Under PM Surya Ghar?
The central subsidy depends on the capacity of your system. At current benchmark prices, the official figures are:
| System capacity | Central subsidy | How it is calculated |
|---|---|---|
| 1 kW | Rs 30,000 | 60% of the benchmark unit cost |
| 2 kW | Rs 60,000 | 60% of the benchmark unit cost |
| 3 kW or higher | Rs 78,000 (maximum) | 60% up to 2 kW plus 40% of the additional cost from 2 kW to 3 kW |
You can install a system larger than 3 kW if your consumption needs it, but the subsidy stays capped at the 3 kW level. You pay the balance of the project cost yourself, either from savings or through a bank loan.
Who Is Eligible for the PM Surya Ghar Subsidy?
As listed on the official page, an applicant must meet all of these conditions:
- Be an Indian citizen.
- Own a house with a roof suitable for installing solar panels.
- Have a valid electricity connection for the household.
- Not have availed of any other subsidy for solar panels.
In practice your roof also needs enough shadow-free space and your DISCOM must approve the installation. Roughly 10 square metres (about 100 sq ft) of open roof is needed for each kW of solar.
How to Apply for PM Surya Ghar Muft Bijli Yojana: Step by Step
The process is online and follows these steps. Portal screens can change, so follow the prompts on the official PM Surya Ghar portal.
- Register on the national portal. Choose your state and electricity distribution company, then enter your consumer number, mobile number and email.
- Log in and apply for rooftop solar. Submit your application through the consumer login and wait for DISCOM approval.
- Choose a registered vendor. Installation should be done by a vendor registered under the scheme, using equipment that meets the scheme norms.
- Get the system installed. Your installer fits the panels, inverter and mounting structure.
- Submit plant details and apply for a net meter. After installation, upload the plant details on the portal and request the net meter.
- Inspection and commissioning. Your DISCOM inspects the plant, installs the net meter and issues a commissioning report.
- Add bank details and receive the subsidy. Submit your bank account details with a cancelled cheque. Reports on the scheme say the subsidy is credited within about 30 days of commissioning, but timelines can vary.
What Documents Do You Need?
The portal lists the exact requirements, but keep these ready:
- A recent electricity bill showing your consumer number
- Identity proof, such as an Aadhaar card
- Proof that you own the house or roof
- Bank account details and a cancelled cheque
- Active mobile number and email address
Is the Subsidy Worth It? A Quick Example
Working back from the official subsidy figures, the benchmark cost of a 3 kW system comes to roughly Rs 1.45 lakh. A subsidy of Rs 78,000 would then cover a little over half of that, leaving about Rs 67,000 for you to pay. Market quotes differ by brand, roof type and state, so treat this as an estimate and ask for a written quote. Our guide on solar panel cost in India breaks down the numbers in detail.
Common mistakes to avoid
- Installing the system before registering and getting approval on the portal.
- Using a vendor who is not registered under the scheme.
- Ignoring shade from water tanks, trees or nearby buildings.
- Forgetting to apply for the net meter. Read how it works in our net metering guide.
- Waiting too long. The scheme is set to run until FY 2026-27.
What Are the Benefits of the PM Surya Ghar Scheme?
- Lower upfront cost: the central subsidy covers a large share of the benchmark cost for a home system.
- Lower electricity bills: every unit your panels generate and you use is a unit you do not buy from the DISCOM.
- Long-term asset: quality panels are designed to last 25 years or more, long after the system has paid for itself.
- Net metering credit: surplus power sent to the grid is adjusted against your imports, as explained in our net metering guide.
- Cleaner energy: rooftop solar reduces your household's dependence on fossil-fuel electricity.
How Much Can You Save With a Subsidised Solar System?
This is an illustration with assumed numbers, not a promise. A 3 kW system in a sunny part of India often generates around 12 to 15 units (kWh) per day, or roughly 360 to 450 units a month. At an assumed tariff of Rs 7 per unit, that is about Rs 2,500 to Rs 3,150 of electricity value each month, or Rs 30,000 to Rs 38,000 a year.
Your actual savings depend on your tariff, how much solar power you use directly, your state's net metering rules and the fixed charges on your bill. Ask your installer for a site-specific estimate.
Which System Size Should You Choose Under the Scheme?
The subsidy rises up to 3 kW and then stops. Match the system to your consumption rather than simply chasing the maximum subsidy.
| Typical monthly use | Suggested size (approx.) | Central subsidy |
|---|---|---|
| Up to about 150 units | 1 to 1.5 kW | Rs 30,000 for 1 kW, more for sizes up to 2 kW |
| About 300 units | 2 to 2.5 kW | Rs 60,000 at 2 kW, more up to 3 kW |
| 450 units or more | 3 kW or higher | Up to Rs 78,000 (capped at 3 kW) |
Our rooftop solar planning guide shows how to size a system from your electricity bill.
How Can You Finance Your Solar System?
You pay the balance of the project cost after the subsidy. Options include your own savings or a bank or financial institution loan for rooftop solar. If you plan to borrow, ask the lender about the interest rate, repayment period, processing charges and whether the subsidy is adjusted against the loan. Terms differ by lender, so compare at least two before deciding.
PM Surya Ghar Myths and Facts
| Common belief | What to know |
|---|---|
| The scheme gives free electricity automatically | You must install a rooftop system. Your savings come from the power it generates |
| Any panels or installer will qualify | Installation should be by a vendor registered under the scheme, using equipment that meets scheme norms |
| The subsidy is paid before installation | Reports on the scheme say the subsidy is credited to your bank account after commissioning and verification |
| A bigger system always means a bigger subsidy | The subsidy is capped at 3 kW, so size the system to your needs |
| The scheme covers any building | It is designed for residential households with an owned house and suitable roof |
What Should You Do After You Receive the Subsidy?
- Keep your invoice, warranty cards and commissioning report safely.
- Track daily generation on the inverter display or app.
- Clean your panels regularly. See our solar panel maintenance guide.
- Book a yearly professional inspection of wiring, earthing and the inverter.
- Read your bill each month to confirm that exported units are being credited.
Final Thoughts
The PM Surya Ghar Muft Bijli Yojana makes rooftop solar far more affordable for Indian households, with a central subsidy of up to Rs 78,000. Check your eligibility, choose a registered vendor and complete the net metering steps so your subsidy is not delayed.
Want help with the application? Contact a certified solar installer for a free site assessment and a quote that includes the subsidy process.
Frequently Asked Questions
What is the maximum subsidy under PM Surya Ghar Muft Bijli Yojana?
The maximum central subsidy is Rs 78,000 for a rooftop solar system of 3 kW or higher, at current benchmark prices. A 1 kW system gets Rs 30,000 and a 2 kW system gets Rs 60,000.
Who can apply for the PM Surya Ghar scheme?
Indian citizens who own a house with a roof suitable for solar, have a valid electricity connection and have not taken any other solar subsidy can apply.
How do I apply for PM Surya Ghar Muft Bijli Yojana online?
Register on the national portal with your state, electricity company and consumer number, then apply for rooftop solar. After installation by a registered vendor, submit plant details, apply for a net meter and add your bank details to receive the subsidy.
Is a net meter required to get the subsidy?
Yes, the application process includes applying for a net meter after installation, and the DISCOM inspects and commissions the plant before the subsidy is released.
How long does it take to receive the subsidy?
Reports on the scheme say the subsidy is credited to your bank account within about 30 days of commissioning. The actual time can vary by state and DISCOM.
Can I get the subsidy if I installed solar earlier?
No. The eligibility conditions state that the household must not have availed of any other subsidy for solar panels.
Is PM Surya Ghar available for commercial or industrial buildings?
No. The scheme is designed for residential households. Businesses and factories can still save with solar, and other incentives may apply, so ask your installer or tax advisor.
Until when is the PM Surya Ghar scheme valid?
The scheme is set to be implemented until FY 2026-27, which ends in March 2027. Check the official portal for any extension or change in terms before you apply.
Do I get the PM Surya Ghar subsidy before or after installation?
Reports on the scheme say the subsidy is credited to your bank account after the plant is installed, inspected and commissioned, and your bank details are submitted. It is not paid up front.
Can I install a solar system larger than 3 kW under the scheme?
Yes, you can install a larger system if your consumption needs it, but the central subsidy stays capped at the 3 kW level.
Can I take a loan for rooftop solar?
Banks and financial institutions offer loans for rooftop solar. Compare interest rates, tenure and charges, and ask how the subsidy is treated.
How much can a 3 kW solar system save each month?
As an illustration, a 3 kW system generating about 12 to 15 units a day at an assumed Rs 7 per unit is worth roughly Rs 2,500 to Rs 3,150 a month. Actual savings depend on your tariff, usage and state rules.