What the PM Surya Ghar subsidy gives you
The 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 scheme provides a central financial assistance (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.
A 3 kW system will be able to generate more than 300 units a month on an average for a household. 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.
Who qualifies for the subsidy
The subsidy is for residential households that install rooftop solar under the scheme. The households will apply for subsidy through the National Portal and will be able to select a suitable vendor for installing rooftop solar. The scheme is open to households across India, but the exact process and additional state-level benefits can vary by state and DISCOM. Check the National Portal for the rules that apply to your connection.
How the subsidy amount is calculated
The central financial assistance is based on the system capacity, not the total cost. For the first 2 kW, the subsidy is 60% of the benchmark cost. For the next 1 kW, up to 3 kW, it is 40% of the benchmark cost. Systems larger than 3 kW get the same subsidy as a 3 kW system, because the subsidy is capped at 3 kW. The benchmark cost is set by the Ministry of New and Renewable Energy, and the subsidy amount is fixed at Rs 30,000 for 1 kW, Rs 60,000 for 2 kW, and Rs 78,000 for 3 kW or higher.
How to claim the subsidy
The households will apply for subsidy through the National Portal and will be able to select a suitable vendor for installing rooftop solar. The process starts with registration on the National Portal, where you enter your details and electricity connection information. After the system is installed and the net meter is commissioned, you submit the plant details and bank account information. 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.
What the subsidy does not cover
The subsidy reduces the upfront cost, but you still pay the difference between the system price and the subsidy amount. For example, a 2 kW system with a starting price of ₹1,75,000 to ₹2,13,000 would leave a balance of ₹1,15,000 to ₹1,53,000 after the ₹60,000 subsidy. A 3 kW system with a starting price of ₹2,15,000 to ₹2,47,000 would leave ₹1,37,000 to ₹1,69,000 after the ₹78,000 subsidy. The subsidy is paid directly to your bank account after the installation is complete and verified.
Financing options for the balance amount
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. This loan can cover the amount you need to pay after the subsidy. The loan is available through the National Portal, and the interest rate is linked to the repo rate, so it can change when the repo rate changes.
State-level subsidies and variations
The central subsidy is the same across India, but some states offer additional subsidies or incentives on top of the central CFA. The rules for net metering, approval timelines, and vendor empanelment can also differ by state and DISCOM. Before you apply, check the National Portal and your state DISCOM's website for the latest rules and any additional benefits.
Why the subsidy matters now
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. A rooftop solar system with subsidy can reduce your dependence on the grid and lower your monthly electricity bill. The scheme aims to install rooftop solar in one crore households, so the subsidy is available for a limited number of households on a first-come, first-served basis.
- Scheme outlay
- Rs.75,021 crore for one crore households
- Subsidy for 1 kW
- Rs 30,000
- Subsidy for 2 kW
- Rs 60,000
- Subsidy for 3 kW or higher
- Rs 78,000
- Loan interest rate
- 5.75% per annum (repo rate + 50 bps)
- CFA processing time
- Around 15 days after redemption request
Indicative system prices before subsidy
- 2 kW on-grid residential₹1,75,000–₹2,13,000 per system ₹1,75,000–2,13,000 / system
- 3 kW on-grid residential₹2,15,000–₹2,47,000 per system ₹2,15,000–2,47,000 / system
What to check before you apply
Before you apply for the subsidy, confirm that your roof is suitable for solar, your electricity connection is in your name, and you have the necessary documents. The National Portal lists the documents required, which typically include proof of identity, proof of address, and a recent electricity bill. You will also need to choose a vendor from the list of empanelled vendors on the portal. The vendor will install the system and help with the net metering application.
Common mistakes to avoid
One common mistake is applying for a system size that does not match your consumption. The subsidy is capped at 3 kW, so a larger system does not get a larger subsidy. Another mistake is not completing the post-installation steps on the portal, which delays the subsidy payment. Make sure you submit the plant details and bank account information correctly, and respond to any queries from the DISCOM or the portal.
How the subsidy is paid
The subsidy is paid directly to your bank account through the National Portal. After the installation and net metering are complete, you submit a redemption request. 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. The amount is transferred electronically, and you can track the status on the portal.
What happens after you get the subsidy
Once the subsidy is credited, your system is fully operational. You will generate your own electricity and can export surplus power to the grid. 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 net metering arrangement determines how you are billed for the power you export, and the rates vary by state and DISCOM.