Quick Facts
What PM Surya Ghar is
PM Surya Ghar Muft Bijli Yojana is the Government of India’s flagship residential rooftop solar subsidy scheme, launched on 13 February 2024. The scheme combines a direct Central Financial Assistance (CFA) for solar installation with a free-electricity guarantee for the first 300 units per month to eligible households.
The programme targets 1 crore (10 million) residential rooftop installations by FY 2027, supported by a budget of approximately Rs 75,000 crore. It is the largest single residential solar programme launched in India to date, building on the earlier Phase-II Grid-Connected Rooftop Solar Programme.
The Ministry of New and Renewable Energy (MNRE) is the nodal ministry. Implementation runs through State Nodal Agencies, DISCOMs, and MNRE-empanelled installation vendors. Households apply, install, and receive subsidy through a unified National Portal for Rooftop Solar.
Subsidy structure
The subsidy is calculated on installed DC kWp capacity, with capped slabs:
| System Size | Subsidy Amount |
|---|---|
| Up to 1 kW | Rs 30,000 |
| Up to 2 kW | Rs 60,000 |
| 3 kW or larger | Rs 78,000 (maximum) |
Subsidy is direct cash transfer to the beneficiary’s bank account after the system is commissioned, net-metering is approved, and DISCOM inspection is complete.
For housing societies and multi-dwelling structures, group housing societies can also avail subsidy with appropriate documentation and consent of residents.
Eligibility criteria
The applicant must be an Indian resident with a valid residential electricity connection in their name (or with owner’s consent if rented). Other criteria:
The roof must have adequate space and structural capacity for the proposed system.
The applicant’s connection must be in the residential category (LT-1 or equivalent in state DISCOM tariffs).
The system must use ALMM-listed solar modules and MNRE-empanelled installation vendor.
The applicant must agree to net metering as the metering arrangement.
The subsidy is per residential connection. Multi-meter homes may apply separately for each connection.
How to apply
The process runs through the National Portal for Rooftop Solar (pmsuryagrh.gov.in).
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Register on the portal with mobile number, electricity bill, and Aadhaar.
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Provide consumer category, state, DISCOM, and connection details.
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Choose an MNRE-empanelled installation vendor from the portal’s directory.
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The vendor conducts site survey and submits a feasibility application to the DISCOM.
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DISCOM verifies feasibility (typically 15 to 30 days).
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Sign installation contract with the vendor and arrange payment (often partial, with balance after commissioning).
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System is installed and commissioned.
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DISCOM installs bidirectional net-metering and conducts inspection.
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Subsidy is credited to the consumer’s registered bank account.
Total timeline from application to subsidy receipt: 60 to 120 days, depending on DISCOM efficiency and vendor capacity.
Financing options
Many banks offer special rooftop solar loans for PM Surya Ghar beneficiaries:
State Bank of India: Solar Loan up to Rs 6 lakh at 8% to 9% per annum, tenure up to 10 years.
Canara Bank: Solar rooftop loan with similar terms, with reduced processing fees for PM Surya Ghar applications.
PNB, Bank of Baroda, Indian Bank: Comparable solar loan products with concessional rates for the scheme.
NBFCs: Several non-banking financial companies (Tata Capital, Mahindra Finance) offer rooftop solar financing.
Loans cover the gross system cost. After the subsidy is credited to the consumer’s account, the consumer can prepay the loan or continue EMI as per their preference.
Free electricity component
The scheme guarantees free electricity for the first 300 units per month to eligible households. The mechanism works through net metering: a 3 kW rooftop solar system in most Indian locations generates enough monthly energy to offset 300 to 350 units of grid consumption.
The “free” element comes from the combination of subsidy reducing system cost and net metering ensuring that solar-generated units fully offset grid consumption. Households that consume more than 300 units pay only for the excess.
The total benefit to a household over the 25-year solar plant life is substantial. A typical 3 kW system saves Rs 60,000 to Rs 90,000 per year in electricity bills, totalling Rs 15 lakh to Rs 22 lakh over 25 years, against an after-subsidy installation cost of Rs 1.6 lakh to Rs 1.8 lakh.
State-wise rollout
Implementation pace varies by state:
Gujarat, Maharashtra, Karnataka, and Tamil Nadu have the fastest rollout, with extensive DISCOM cooperation and high vendor empanelment.
Uttar Pradesh, Madhya Pradesh, Rajasthan, and Andhra Pradesh have ramping rollout, with the scheme gaining momentum through state-specific programs.
Northeast states, Bihar, and West Bengal have slower implementation due to administrative capacity constraints.
State-specific add-on subsidies exist in some states. Gujarat, for example, offers an additional state subsidy on top of the central scheme for specific consumer categories.
Common mistakes when applying
Applying without confirming vendor empanelment. Only MNRE-empanelled vendors qualify for subsidy.
Choosing modules not on the ALMM list. Subsidy is denied for non-ALMM installations.
Oversizing the system beyond sanctioned load. Many states require solar capacity to be within sanctioned load limits.
Skipping the DISCOM feasibility step. Direct installation without DISCOM approval can void net-metering and subsidy.
Mismatching the bank account name with the electricity connection holder. Subsidy is credited to the registered consumer’s account; mismatches cause delays.
Choosing the lowest-cost vendor without checking after-sales service. Solar plants have 25-year life and need long-term support.
Best practices
Use the National Portal for Rooftop Solar from the start. Going through informal vendor channels often delays subsidy.
Verify the vendor’s empanelment status on the portal before signing.
Insist on ALMM-listed modules and MNRE-empanelled inverters. Get product specifications and serial numbers in writing.
Time the application to match your DISCOM’s processing capacity. Some DISCOMs have monthly target slots.
Combine PM Surya Ghar with available bank financing if the after-subsidy cost is not affordable as a single payment.
Keep all documents (electricity bill, installation invoice, commissioning certificate, DISCOM net-meter installation report) for the warranty period.
Standards and compliance
PM Surya Ghar installations must use ALMM-listed solar modules (IEC 61215, IEC 61730 certified). Inverters must be MNRE-empanelled (IEC 62109 certified, anti-islanding per IEC 62116). The installation must comply with CEA Connectivity Regulations 2019. The applicable state SERC net metering regulations apply for the metering arrangement.
Related glossary terms
Key takeaways
PM Surya Ghar Muft Bijli Yojana is India’s flagship residential rooftop solar subsidy scheme, providing Central Financial Assistance of up to Rs 78,000 for 3 kW or larger systems. Combined with net metering, the scheme delivers free electricity for the first 300 units per month for typical households. Application runs through the National Portal for Rooftop Solar, requires ALMM-listed modules and MNRE-empanelled vendors, and typically takes 60 to 120 days from application to subsidy receipt. The programme targets 1 crore residential installations by FY 2027.