PM Surya Ghar Yojana: What a Household Should Know

The subsidy is the part most people ask about first

PM-Surya Ghar: Muft Bijli Yojana has been approved with a total outlay of Rs.75,021 crore for installing rooftop solar and providing free electricity up to 300 units every month for One Crore households. The subsidy is called Central Financial Assistance, or CFA. The scheme provides a CFA of 60% of system cost for 2 kW systems and 40% of additional system cost for systems between 2 to 3 kW capacity, capped at 3 kW. At current benchmark prices this means Rs 30,000 subsidy for 1 kW system, Rs 60,000 for 2 kW systems and Rs 78,000 for 3 kW systems or higher.

That cap matters. A 5 kW system gets the same subsidy as a 3 kW system: Rs 78,000. The subsidy is not a percentage of whatever you spend; it is worked out on benchmark prices set by the government. So the amount you receive is fixed by the system size you install, up to 3 kW.

What a system costs before subsidy

To see what the subsidy means, start with the market price. A 2 kW home solar system in India has a starting price range, with installation, of ₹1,75,000 to ₹2,13,000. The 3 kW solar system starting price in India, with installation, ranges between about Rs. 2.15 lakh and Rs. 2.47 lakh. These are on-grid residential systems, the type the scheme is meant for.

Subtract the subsidy and a 2 kW system comes to roughly ₹1,15,000 to ₹1,53,000. A 3 kW system comes to roughly ₹1,37,000 to ₹1,69,000. The word roughly is doing work here: your installer's quote may differ from the benchmark, and the subsidy is paid on the benchmark, not your quote. But the range gives you a realistic starting point.

The loan is separate from the subsidy

If you do not want to pay the full amount upfront, the scheme has a loan route. Collateral-free loans are available from nationalized banks at a concessional interest rate of repo-rate plus 50 bps, i.e., 5.75% per annum for the present, with a tenure of 10 years. That is a fixed rate for the life of the loan, and no collateral is needed.

The loan and the subsidy work together. You can borrow the system cost, and the subsidy is credited to your account after installation. The loan EMI is based on the full system cost, but the subsidy reduces your net outgo. Banks have their own paperwork, but the scheme's rate and tenure are set centrally.

How the application works

The households will apply for subsidy through the National Portal and will be able to select a suitable vendor for installing rooftop solar. The portal is the single place to apply, track the subsidy, and choose an installer from the list of registered vendors. You do not need to go through a middleman.

With all credentials entered correctly on the National Portal, the average time taken in processing the CFA is around 15 days after the redemption request made by the consumer. That is the time from when you submit the request for subsidy release to when the amount is processed. The installation itself takes longer, depending on the vendor and your DISCOM's inspection.

What you get after installation

A 3 kW system will be able to generate more than 300 units a month on an average for a household. That is the number the scheme's free electricity promise is built on. Through this scheme, the households will be able to save electricity bills as well as earn additional income through sale of surplus power to DISCOMs. The surplus is paid at the feed-in tariff set by your state's electricity regulator, and the amount varies by state.

Net metering is what makes the sale of surplus possible. Your meter records both what you draw from the grid and what you export. The DISCOM settles the difference. The scheme's portal and your DISCOM handle the net metering application, but the installer usually helps with the paperwork.

Is now a good time?

The rise in demand is in line with the progression of summer conditions across the country, with electricity consumption witnessing a significant growth of 8.9% during the month of April 2026. Summer is when rooftop solar produces the most, and when bills are highest. Installing before the peak summer months means your system is generating when you need it most.

But the scheme is not seasonal. The subsidy and loan terms are fixed, and the portal is open year-round. The main timing question is your own roof and budget. If your roof is shaded or needs repair, sort that first. If your DISCOM has a backlog of net metering applications, that can delay the benefit.

What to check before you apply

First, check your average monthly consumption. The scheme is designed around 300 units a month. If you use much less, a smaller system may be enough. If you use more, a 3 kW system will still cut your bill, but it will not make it zero.

Second, check your roof. A 3 kW system needs roughly 200 square feet of unshaded roof. If your roof is shared, you will need the housing society's permission. If you live in a flat, you may not have a roof to use at all.

Third, compare quotes. The portal lists registered vendors, but you can also ask local installers for quotes. The subsidy is the same regardless of which registered vendor you choose, so the difference is in the price and the installation quality.

The portal is the source of truth

Scheme rules change. The official portal is pmsuryaghar.gov.in. Check the current benchmark prices, the list of registered vendors, and your application status there. The figures in this post are from the scheme's announcements and are correct as of now, but the portal is where you confirm them before you commit.