Under the PM Surya Ghar Yojana (PM Surya Ghar: Muft Bijli Yojana), a household gets a central rooftop solar subsidy of ₹30,000 per kW for the first 2 kW and ₹18,000 for the third kW. That caps the subsidy at ₹78,000 for a system of 3 kW or larger. You apply on the national portal, install through a vendor registered for your electricity distributor, and the subsidy is paid into your bank account after the system is inspected and commissioned.
A 3 kW system can generate more than 300 units a month on average, according to the government, which is enough to cover most of a typical home's bill. The scheme was approved by the Union Cabinet in February 2024 with an outlay of ₹75,021 crore and a target of one crore households.
How much is the PM Surya Ghar rooftop solar subsidy?
The central financial assistance (CFA) is fixed per kilowatt, not as a percentage of what your vendor charges. That makes it easy to calculate.
The government links system size to typical consumption:
| Average monthly use | Suitable system size | Central subsidy |
|---|---|---|
| 0–150 units | 1–2 kW | ₹30,000–₹60,000 |
| 150–300 units | 2–3 kW | ₹60,000–₹78,000 |
| Above 300 units | Above 3 kW | ₹78,000 |
Some states add their own top-up subsidy, and households in special category states and union territories receive a higher central rate. Check the current figure for your state on the PM Surya Ghar portal before you sign a quote.
Who is eligible for the scheme?
The scheme is aimed at Indian households that own a house with a roof suitable for solar panels. The main conditions in the guidelines are:
- You need a valid residential electricity connection in your name.
- You should not have already taken a central subsidy for rooftop solar on the same connection.
- The roof must have enough shadow-free area. As a rough guide, each kilowatt needs around 10 square metres, though modern high-efficiency panels need less.
Tenants generally cannot apply on their own, so speak to the owner first. In apartments, the society usually applies for common areas.
How to apply for the PM Surya Ghar Yojana, step by step
The whole process is tracked on the national portal, and your DISCOM (electricity distribution company) approves each stage.
Register on the portal
Select your state and DISCOM, enter your consumer number, mobile and email.
Apply for rooftop solar
Log in and submit the application; wait for feasibility approval from your DISCOM.
Choose a registered vendor
Pick an installer empanelled for your DISCOM and agree the system size and price.
Install and apply for net metering
Once installed, upload plant details and apply for a net meter.
Inspection and commissioning
The DISCOM installs the net meter, inspects the system and issues a commissioning report.
Receive the subsidy
Submit your bank details and a cancelled cheque on the portal; the CFA is credited to your account.
The subsidy is released after commissioning, so you pay the vendor's full price upfront or through a loan.
What a rooftop solar system costs after subsidy
Vendor prices vary by city, brand, structure height and inverter type, so get at least three written quotes. Three things will affect the final price you pay:
- The GST cut. From 22 September 2025, GST on solar modules and systems dropped from 12% to 5%. Reports estimated savings of roughly ₹9,000 to ₹10,500 on a typical 3 kW home system. Our news explainer on GST's new two-slab structure covers the wider rate changes.
- Domestic content. Systems claiming the subsidy must use panels made in India from approved manufacturers, which your vendor should state on the quote.
- Structure and wiring. Elevated structures, long cable runs and a separate earthing pit add cost but matter for safety and output.
Loans for rooftop solar
Public sector banks offer collateral-free loans for residential systems up to 3 kW. The interest rate is linked to the RBI repo rate (reported at 0.5 percentage points above repo when the scheme launched), with typical margin money of around 10% and tenures of up to ten years. Larger systems are financed at higher rates. Apply through the portal or directly at your bank.
- ₹78,000maximum central subsidy per household
- 300+units a month a 3 kW system can generate on average
- 1 croretarget number of households
- ₹75,021 croreapproved scheme outlay
How to choose a reliable rooftop solar vendor
Your installer matters more than the panel brand. A poor installation can leak, underperform or create fire risks, and the subsidy depends on correct paperwork. You can compare solar installers on IndiaYP by reviews and locality.
- Is the vendor registered on the PM Surya Ghar portal for your DISCOM?
- Does the quote list panel make, wattage and DCR (made-in-India) status?
- What inverter brand and capacity is offered, and what is its warranty?
- What is the performance warranty on the panels, and who honours it?
- Is the mounting structure galvanised, and what wind load is it designed for?
- Are earthing, lightning arrester and AC/DC protection included in the price?
- Will the vendor handle net metering and portal uploads?
- Is there a written annual maintenance and cleaning offer?
- Can you speak to two or three past customers nearby?
Pay in stages linked to delivery, installation and commissioning rather than 100% upfront. Keep every invoice, warranty card and the commissioning report together.
Net metering, maintenance and savings
With net metering, surplus power from your panels flows into the grid and is credited against the units you draw at night. Your bill then reflects only the net units. The exact rules on banking, settlement and payment for surplus units are set by your state electricity regulator, so ask your DISCOM how credits are settled.
Maintenance is simple: dust cuts output, so rinse panels with plain water every couple of weeks in dry months and check the inverter display for errors. A battery is optional; most homes with reliable grid supply do without one, while areas with frequent outages may want a hybrid inverter and power backup.
Homes in sunny states such as Gujarat and Rajasthan typically see higher yields per kilowatt, while coastal and hill areas see lower output in monsoon months. Your vendor should give you an expected annual generation figure in writing.
Who benefits most from rooftop solar
The households that gain most are those with high bills, a large shadow-free roof and plans to stay for several years. If your consumption is already within a state free-electricity scheme, the payback may be slower; compare carefully. For a broader view of household budgets, see our comparison of the cost of living in Bengaluru, Mumbai and Delhi.
If you run a solar business, demand from households is steady while the scheme runs. Installers in cities such as Jaipur, Ahmedabad and Surat compete heavily on price, so reviews and fast after-sales service set the good ones apart.
Final word on the rooftop solar subsidy
The PM Surya Ghar Yojana makes a 2–3 kW system affordable for many families, and the subsidy is predictable. Size your system to your bill, use a registered vendor, keep the paperwork clean and the money arrives in your account. Start by checking your monthly units on your last six bills, then shortlist three installers and compare quotes.
Frequently asked questions
How much subsidy is available under PM Surya Ghar Yojana?
The central subsidy is ₹30,000 per kW for the first 2 kW and ₹18,000 for the third kW, so a household gets ₹30,000 for 1 kW, ₹60,000 for 2 kW and ₹78,000 for 3 kW or more. Higher rates apply in special category states, and some state governments add their own top-up.
How do I apply for the rooftop solar subsidy?
Register on the official PM Surya Ghar portal with your state, DISCOM and consumer number. Submit the application, get feasibility approval, install through a registered vendor and apply for net metering. After the DISCOM inspects and commissions the system, submit your bank details on the portal and the subsidy is credited directly to your account.
Is the PM Surya Ghar scheme free?
Not entirely. "Muft Bijli" refers to the free electricity your panels generate. You still pay for the system, and the central subsidy reduces the net cost. Depending on your vendor's price and any state top-up, a 3 kW system may still cost the household a significant amount, which can be financed with a collateral-free loan.
Can tenants apply for rooftop solar subsidy?
The scheme is designed for households that own their house and roof, so tenants generally cannot apply on their own. A tenant can ask the owner to apply, since the panels are fixed to the owner's roof and stay with the property. In apartments, the housing society can apply for common-area systems and receive ₹18,000 per kW up to 500 kW.
What size solar system do I need for my home?
The scheme guidelines suggest 1–2 kW for homes using up to 150 units a month, 2–3 kW for 150–300 units, and above 3 kW for higher use. Check your last six to twelve electricity bills, take the average monthly units and add a margin if you plan to buy an EV or more appliances.
How long does it take to get the subsidy after installation?
The subsidy is released after the DISCOM installs the net meter, inspects the system and the commissioning report is uploaded. Once you submit bank details on the portal, the credit typically follows within weeks. Delays are usually caused by incomplete documents or pending net-meter installation, so follow up with your vendor and DISCOM.
Is a loan available for rooftop solar under PM Surya Ghar?
Yes. Public sector banks offer collateral-free loans for residential systems up to 3 kW, at interest rates linked to the RBI repo rate. Margin money is typically around 10% and repayment can run up to ten years. Loans for larger systems are available at higher rates. You can apply through the portal or your bank branch.
Do I need a battery with rooftop solar?
No. Most systems under the scheme are grid-connected with net metering, so the grid acts as your storage. Surplus daytime power is exported and credited against units you use at night. A battery or hybrid inverter only makes sense if you face frequent power cuts, and it adds substantially to the cost.
Which solar panels are allowed under the scheme?
Systems claiming the central subsidy must use solar modules made in India that meet the domestic content requirement and come from approved manufacturers. Your vendor's quote should list the panel make, wattage and DCR status. Ask for the module data sheet and warranty card at installation, and keep them with your commissioning report.
What is the GST rate on rooftop solar in 2026?
GST on solar panels, modules and solar power systems was reduced from 12% to 5% from 22 September 2025 under the GST rate rationalisation. Some balance-of-system parts billed separately may attract a different rate, so ask your vendor for a GST breakdown on the invoice. The lower rate reduced typical 3 kW system prices.
Written by
IndiaYP Editorial
The IndiaYP team writes practical guides and news for business owners and customers across India's states, cities and localities.
