PM-Surya Ghar Yojana: Get up to ₹78,000 Subsidy for Solar

India's Biggest Residential Solar Push

The PM-Surya Ghar Muft Bijli Yojana, launched in February 2024, is the Indian government's most ambitious residential solar scheme to date. With a total outlay of ₹75,021 crore, the scheme aims to install rooftop solar on 1 crore (10 million) households across India, providing up to 300 units of free electricity per month to each participating family.

The scheme offers direct subsidies that reduce the cost of a residential solar system by 40-60%, making solar accessible to middle-class and lower-middle-class families who previously couldn't afford the upfront investment.

Subsidy Structure

For Residential Households

• 1 kW system: ₹30,000 subsidy (covers approximately 60% of installation cost)
• 2 kW system: ₹60,000 subsidy
• 3 kW system (and above): ₹78,000 subsidy (capped)

The subsidy is credited directly to the beneficiary's bank account after installation and inspection by the DISCOM. Note: the subsidy amount is the same regardless of system cost variations across states — so a 3 kW system costing ₹1.8 lakh in Rajasthan gets the same ₹78,000 subsidy as one costing ₹2.2 lakh in Kerala.

What's the Real Cost After Subsidy?

For a typical 3 kW system (suitable for a 2-3 BHK home with ₹2,000-₹4,000 monthly electricity bill):

• Total cost: ₹1.7-2.2 lakh (varies by state and vendor)
• Government subsidy: ₹78,000
• Your cost: ₹92,000-₹1.42 lakh
• Monthly savings: ₹1,500-₹3,000 (depending on consumption pattern and tariff)
• Payback period: 3-5 years after subsidy

Eligibility Criteria

Who qualifies:

• Any Indian household with a valid electricity connection
• Must own the roof where the system will be installed (owned house, not rented)
• The roof must have adequate shadow-free area (approximately 10 sq.m per kW)
• One subsidy per household (linked to electricity consumer number)

Who does NOT qualify:

• Commercial, industrial, or institutional establishments
• Households that have already availed a solar subsidy under earlier schemes
• Rented properties (the tenant cannot apply; the owner must)

How to Apply: Step-by-Step

1. Register on the national portal: Visit pmsuryaghar.gov.in and register using your electricity bill details and Aadhaar number
2. Get DISCOM approval: Your local power distribution company reviews your application and confirms technical feasibility (roof assessment, transformer capacity)
3. Choose a vendor: Select an empanelled solar installer from the portal's list. Get quotes from 2-3 vendors to compare pricing.
4. Installation: The vendor installs the system (typically 1-3 days for residential systems)
5. Inspection and commissioning: DISCOM inspects the installation, installs a bi-directional (net) meter, and commissions the system
6. Subsidy disbursement: After commissioning, the subsidy is transferred directly to your bank account within 30 days

Net Metering: How Free Electricity Works

Under net metering, a bi-directional meter tracks both the electricity you consume from the grid and the excess solar electricity you export to the grid. At the end of each billing cycle, you're billed only for the net consumption (grid import minus solar export). If your solar system generates more than you consume, the excess credits roll forward to the next billing cycle.

For a typical 3 kW system generating 12-15 units per day, a household consuming 8-10 units per day will have a net electricity bill close to zero, with surplus credits accumulating for high-consumption months (summer AC usage).

Common Concerns Addressed

Will it work during monsoon/cloudy days?

Solar panels produce less on cloudy days (30-50% of peak output) but don't stop entirely. A well-sized system accounts for monsoon months — the excess generation in sunny months builds up credits that offset lower monsoon production.

What about maintenance?

Residential solar requires minimal maintenance: wash panels with water every 2-4 weeks (or after dust storms), and check the inverter display for error codes periodically. There are no moving parts. Annual maintenance cost is ₹1,000-₹2,000. Panels carry a 25-year warranty; inverters carry a 5-10 year warranty.

Can I use a battery for power backup?

The PM-Surya Ghar scheme subsidizes grid-connected (on-grid) systems only — no battery storage. You can add a battery system separately at your own cost (₹50,000-₹1.5 lakh for 3-5 kWh), but the subsidy applies only to the panels and inverter.

Use our Solar Calculator to estimate your savings under the PM-Surya Ghar scheme for your specific state and electricity consumption.