The Indian government's PM Surya Ghar Muft Bijli Yojana, launched in February 2024, is the largest rooftop solar subsidy scheme India has ever seen. With a budget of ₹75,021 crore and a target of 1 crore (10 million) homes, it aims to put solar panels on rooftops across India — and for eligible homeowners, the central government subsidy alone can cover 40–70% of the system cost.
In this guide, we explain exactly who is eligible, how much subsidy you can receive, and how to navigate the application process step by step.
What is PM Surya Ghar Muft Bijli Yojana?
The PM Surya Ghar Muft Bijli Yojana ("Free Electricity from Sun Homes Scheme") was announced by Prime Minister Narendra Modi in February 2024 and formally launched on 29 February 2024. It is India's most ambitious rooftop solar programme to date.
The scheme has two core components:
- Central Financial Assistance (CFA): A direct subsidy on the installation cost, credited to your bank account after commissioning.
- Free electricity commitment: The scheme is designed such that eligible households can generate enough solar power to cover 300 units per month — virtually eliminating their electricity bill for basic consumption.
The entire application and disbursement process is handled through a dedicated online portal — pmsuryaghar.gov.in — which streamlines everything from vendor selection to subsidy transfer.
Subsidy Amounts: How Much Can You Get?
The central government subsidy under PM Surya Ghar is calculated based on system capacity. Here are the current subsidy slabs:
| System Capacity | Subsidy Amount | Approx. System Cost (before subsidy) | Post-Subsidy Cost |
|---|---|---|---|
| 1 kW | ₹30,000 | ₹65,000–₹80,000 | ₹35,000–₹50,000 |
| 2 kW | ₹60,000 | ₹1,20,000–₹1,50,000 | ₹60,000–₹90,000 |
| 3 kW | ₹78,000 | ₹1,80,000–₹2,10,000 | ₹1,02,000–₹1,32,000 |
| Above 3 kW | ₹78,000 (capped) | Varies by size | System cost minus ₹78,000 |
The subsidy is capped at ₹78,000 for 3 kW and above. This means if you install a 5 kW system, you still receive only ₹78,000 — not a proportionally higher amount. For this reason, many advisors suggest maximizing your 3 kW subsidy first, then considering whether the additional capacity makes financial sense for your consumption.
💡 Key Insight: The subsidy is provided as Direct Benefit Transfer (DBT) directly to your bank account — not as a discount on the vendor's invoice. You pay the full cost to the vendor first, then receive the subsidy in your bank account after the system is commissioned and the net meter is installed.
Eligibility Criteria
To claim the PM Surya Ghar subsidy, your installation must meet the following conditions:
Property Requirements
- The property must be a residential building (individual home or housing society flat).
- The applicant must be the legal owner of the property or have the owner's written consent.
- The property must have an existing electricity connection from a DISCOM.
- Only one subsidy claim per electricity consumer number is allowed.
Installation Requirements
- The system must be a grid-connected rooftop solar PV system (not an off-grid or hybrid-with-battery system for subsidy purposes).
- The installation must be carried out by a vendor empanelled on the PM Surya Ghar portal.
- Panels and inverters must meet BIS/IEC certification standards and be from MNRE-approved models.
- Net metering must be installed by the local DISCOM.
No Income Limit
Unlike some earlier solar subsidy programmes, PM Surya Ghar has no income eligibility ceiling. Any homeowner with a residential electricity connection can apply, regardless of income. This is a significant improvement over older schemes that restricted subsidies to households below a certain income or load threshold.
How to Apply: Step-by-Step
Step 1: Register on the Portal
Go to pmsuryaghar.gov.in and click "Apply for Rooftop Solar". Register using your electricity consumer number, mobile number, and Aadhaar. You'll receive an OTP to verify your mobile number and create your login.
Step 2: Submit Application for Feasibility Approval
Once logged in, fill in your installation details: state, DISCOM, consumer number, and desired system capacity. Submit this to your DISCOM for feasibility approval. This step checks if net metering is feasible at your location and clears you to proceed with installation.
Step 3: DISCOM Approval
Your DISCOM reviews and approves (or queries) the application. This typically takes 3–15 working days depending on your state. You'll receive an SMS and email notification once approved.
Step 4: Choose a Registered Vendor
The portal lists all empanelled vendors in your district. Compare their rates (the portal shows benchmark costs), check ratings and reviews, and select a vendor. You can also negotiate — vendors listed on the portal are bound by portal benchmark prices which serve as a ceiling.
Step 5: Installation
Your selected vendor installs the system. Do not pay the full amount upfront — a standard payment schedule is 50% advance, 40% on installation completion, and 10% after net meter installation and commissioning. Ensure you receive proper receipts and warranty documents.
Step 6: Net Meter Installation
After installation, the vendor applies to your DISCOM for net meter installation. The DISCOM installs the bidirectional net meter, typically within 15–30 days of the vendor's application. Some states are faster; others have backlogs.
Step 7: Commissioning Report and Subsidy Application
Once the net meter is installed, submit the commissioning report on the portal along with:
- Installation completion certificate from the vendor
- Net meter installation certificate from DISCOM
- Bank account details (Aadhaar-linked account preferred)
- Photographs of the installed system
Step 8: Subsidy Disbursement
Once your commissioning documents are verified, the central subsidy is released via DBT to your registered bank account. Standard timeline: 30–60 days after document submission. You'll receive an SMS confirmation when the amount is credited.
State-Level Additional Subsidies
Several states offer their own additional subsidies on top of the central government's PM Surya Ghar CFA. These are separate claims and may have different application processes:
| State | Additional Subsidy | Notes |
|---|---|---|
| Gujarat | ₹10,000–₹40,000 | Via Gujarat Urja Vikas Nigam (GUVNL) |
| Maharashtra | Up to ₹15,000 | MSEDCL scheme; for LT consumers |
| Rajasthan | ₹5,000–₹10,000 | Combined with central CFA |
| Uttar Pradesh | Varies (check UPNEDA) | State-level incentive for rural areas |
| Tamil Nadu | ₹2,000–₹5,000 (incentive) | TANGEDCO offers additional support |
| Delhi | ₹2/unit generated for 5 years | Generation-based incentive (GBI) |
Always check with your state nodal agency or DISCOM for the latest state-specific schemes, as these are updated frequently.
Common Mistakes That Delay Your Subsidy
The PM Surya Ghar portal is designed to be user-friendly, but several common errors cause unnecessary delays. Avoid these:
- Using an unregistered vendor: If your vendor is not empanelled on the PM Surya Ghar portal, your subsidy application will be rejected outright. Always verify before signing any contract.
- Mismatched consumer number: The electricity consumer number on your portal application must exactly match your electricity bill. Even a single digit error causes rejection.
- Non-Aadhaar-linked bank account: The subsidy is transferred via DBT, which requires your bank account to be linked to the same Aadhaar used during registration. Ensure this is done before applying.
- Incomplete photo documentation: The portal requires specific photographs — installation photos from multiple angles, inverter photo with serial number visible, and net meter photo. Blurry or incomplete photos are rejected.
- Claiming before net meter is installed: Do not submit the commissioning report before the net meter is installed. The portal will reject applications without a valid net meter certificate.
- Installing a larger system than your sanctioned load: Your system capacity cannot exceed your electricity connection's sanctioned load. Confirm this with your DISCOM at the feasibility stage.
Frequently Asked Questions
Can a housing society apply collectively for PM Surya Ghar?
Yes! Housing societies can apply for the scheme for common area electricity (lighting, lifts, water pumps). Individual flat owners can also apply separately for their own rooftop area. The scheme has a specific provision for Group Housing Societies under the "RWA / Group Housing" category on the portal.
Is there any loan available along with the subsidy?
Yes. The government has facilitated collateral-free solar loans of up to ₹2 lakh through scheduled commercial banks at concessional interest rates. The portal links you to participating banks. Many banks like SBI, Bank of Baroda, and PNB offer dedicated solar home loans under this scheme.
How long does the entire subsidy process take?
From application to subsidy credit, the typical timeline is 60–120 days — 15 days for DISCOM feasibility approval, 30–45 days for installation and net meter installation, and 30–60 days for subsidy disbursement after commissioning. Gujarat and Rajasthan tend to be faster; some other states take longer due to DISCOM processing backlogs.
Can I add batteries to my solar system and still get the subsidy?
For the PM Surya Ghar CFA, the system must be grid-connected. However, you can install batteries in addition to a grid-connected system — the subsidy applies to the grid-connected portion. The battery cost is not subsidized under the central scheme, though some states have separate incentives for battery storage.
What if my DISCOM rejects my net metering application?
DISCOMs are required by SERC (State Electricity Regulatory Commission) regulations to provide net metering for eligible rooftop solar installations. An outright rejection without valid technical grounds is challengeable. If you face issues, you can file a complaint through the PM Surya Ghar portal's grievance mechanism, or approach your state's SERC Consumer Grievance Redressal Forum.