The Ultimate Guide to PM Surya Ghar: How to Get Your Solar Subsidy in India (2025 Update)
What is the PM Surya Ghar: Muft Bijli Yojana?
Launched on February 15, 2024, the PM Surya Ghar: Muft Bijli Yojana is a transformative Central Government scheme aimed at revolutionizing India’s energy landscape. With a total financial outlay of ₹75,021 crore, the program is set to be implemented until the 2026-27 financial year.
The initiative has two primary objectives. The first is a national goal: to install rooftop solar (RTS) systems in 1 crore (10 million) households, significantly boosting India’s renewable energy capacity, reducing carbon emissions, and accelerating the nation’s 2070 Net Zero target. The scheme is estimated to save the government ₹75,000 crore annually in electricity costs.
The second objective is focused on the household: to “democratize” renewable energy by making it accessible and affordable for middle-class and lower-income families. It achieves this by providing substantial Central Financial Assistance (CFA), or subsidies, for the installation of solar panels
The “300 Units of Free Electricity” Promise Explained
The scheme’s popular name, “Muft Bijli Yojana” (Free Electricity Scheme), stems from its core promise of providing households with up to 300 units of free electricity per month.
It is critical to understand that this is not a government waiver on the electricity bill. Instead, the “free electricity” is the result of the newly installed solar system generating power. A suitably sized 3 kW system, for example, can generate over 300 units of electricity per month on average
The initiative has two primary objectives. The first is a national goal: to install rooftop solar (RTS) systems in 1 crore (10 million) households, significantly boosting India’s renewable energy capacity, reducing carbon emissions, and accelerating the nation’s 2070 Net Zero target. The scheme is estimated to save the government ₹75,000 crore annually in electricity costs.
The second objective is focused on the household: to “democratize” renewable energy by making it accessible and affordable for middle-class and lower-income families. It achieves this by providing substantial Central Financial Assistance (CFA), or subsidies, for the installation of solar panels
This process works through a mechanism called Net Metering :
Self-Consumption: During the day, the solar panels generate electricity. This power is first used to run the home’s appliances (fans, lights, refrigerators, etc.).
Exporting Excess: On a sunny afternoon, a 3 kW system may generate more power than the house is consuming. This surplus, unused electricity is automatically exported back to the local electricity grid, managed by the area’s Distribution Company (DISCOM).
Net Billing: At the end of the month, the electricity bill is “netted.” The DISCOM calculates the (Total Units Imported from the grid, e.g., at night) minus the (Total Units Exported to the grid).
The Result: If a household generates 300 units and consumes 300 units, the net bill for energy consumption can become zero. If it generates 300 units but consumes 400, it only pays for the “net” 100 units. This system allows households to significantly reduce their electricity bills and, in some cases, earn extra income by selling surplus power back to the DISCOM.
This scheme fundamentally shifts the homeowner’s role from a simple consumer of electricity to a prosumer—a household that both produces and consumes its own clean energy.
How Much Subsidy Can You Really Get? (The 2025 Breakdown)
The subsidy, or Central Financial Assistance (CFA), is a fixed amount based on the size of the solar system (measured in kilowatts, or kW), not a percentage of the total installation cost. The 2025 subsidy structure is tiered to provide the maximum benefit to smaller systems
For Individual Residential Households
- For the first 2 kW of capacity: The subsidy is ₹30,000 per kW
- For the next 1 kW (up to 3 kW total): The subsidy is ₹18,000 per kW.
- For systems above 3 kW: There is no additional subsidy.
The total subsidy for any residential system, regardless of how large it is, is capped at a maximum of ₹78,000.
This tiered and capped structure is a deliberate policy. It is designed to heavily incentivize the 1-3 kW systems most suitable for average households, rather than providing scaling discounts for large, wealthy homes. A 10 kW system, for instance, receives the exact same ₹78,000 subsidy as a 3 kW system.
PM Surya Ghar Subsidy Structure (2025)
| System Capacity (kW) | Subsidy Calculation | Total Central Subsidy (CFA) |
|---|---|---|
| 1 kW | 1 kW × ₹30,000 | ₹30,000 |
| 2 kW | 2 kW × ₹30,000 | ₹60,000 |
| 2.5 kW | (2 kW × ₹30,000) + (0.5 kW × ₹18,000) | ₹69,000 |
| 3 kW | (2 kW × ₹30,000) + (1 kW × ₹18,000) | ₹78,000 (Maximum Cap) |
| 5 kW | Subsidy is capped at 3 kW | ₹78,000 (Maximum Cap) |
| 10 kW | Subsidy is capped at 3 kW | ₹78,000 (Maximum Cap) |
For Group Housing Societies (GHS / RWA)
To address the millions of families living in urban apartments, the scheme has a separate category for Group Housing Societies (GHS) and Resident Welfare Associations (RWAs).
- Subsidy: ₹18,000 per kW.
- Purpose: This subsidy is for installing solar systems to power common facilities only, such as lifts, water pumps, corridor lighting, and common EV charging stations.
- Cap: This subsidy is available for systems up to 500 kW capacity (calculated at 3 kW per house within the society). This allows apartment dwellers to collectively lower their monthly maintenance bills.
State-Level “Top-Up” Subsidies
In addition to the central subsidy, several states offer their own “top-up” benefits, making the switch to solar even more affordable. For example, Uttar Pradesh has offered an additional subsidy of ₹15,000/kW (up to ₹30,000) , and Delhi has its own policy. Applicants are advised to check their state’s renewable energy portal for the latest 2025 top-up policies.
Eligibility Criteria: A 4-Point Checklist
The eligibility criteria for the scheme are straightforward and broad. The applicant must meet the following four conditions :
- Indian Citizenship: The applicant must be a citizen of India.
- Property Ownership: The applicant must own a house with a roof that is suitable for installing solar panels. A “suitable roof” is one with sufficient space that receives adequate, direct sunlight.
- For Tenants: A tenant may be eligible to apply, but they must provide a formal No Objection Certificate (NOC) from the legal property owner.
- For GHS/RWAs: If living in a society, an NOC from the housing society may be required.
- Valid Electricity Connection: The household must have a valid, grid-based electricity connection from the local DISCOM. Critically, the name on the electricity bill must match the name of the applicant.
No Prior Subsidy: The applicant must not have availed any other central government subsidy for solar panels in the past.
A Note on Income Limits
There has been confusion regarding income limits for this scheme. While the scheme’s intent is to benefit “poor and middle-income” households , a specific income level (e.g., “₹1.5 lakh”) is not a hard eligibility criterion for the subsidy or the associated loan.
Official loan documents from major lenders like SBI, for loans up to ₹2 Lakhs (which covers 1-3 kW systems), explicitly state “No Requirement” for Net Annual Income.
The scheme’s actual filter is not an income certificate but the household’s average monthly electricity consumption. The portal guides applicants to a system size based on their electricity bill, which naturally aligns the scheme with its target audience (low-to-medium consumers) without creating a bureaucratic barrier of income proof.
Determining the Right Solar System Size (1kW, 2kW, or 3kW+?)
Choosing the correct system size is the most important decision an applicant will make. The official recommendation is to base this decision on the household’s average monthly electricity consumption, measured in units (kWh).
The official national portal provides the following guidance :
0-150 units/month: A 1-2 kW system is suitable.
150-300 units/month: A 2-3 kW system is suitable.
Over 300 units/month: A system above 3 kW is recommended.
For many average households, a 3 kW system is considered the “sweet spot”. It generates over 300 units of electricity, maximizes the available subsidy at ₹78,000, and has the potential to bring monthly electricity bills down to zero.
To assist in this decision, the pmsuryaghar.gov.in portal provides two key tools:
Benefits Calculator: This tool helps estimate the appropriate system size, the total cost, the subsidy amount, and the long-term savings.
GIS Tool: A feature on the portal allows applicants to view their own roof on a map, helping to plan the potential solar capacity based on available, unshaded space.
The Key Financial Trade-Off
Applicants in the “>300 units” category face a critical financial choice. The subsidy is capped at ₹78,000, the amount given for a 3 kW system.
A household consuming 500 units/month may require a 5 kW system to fully cover its bill. This 5 kW system will still only receive the maximum ₹78,000 subsidy. This means the applicant must pay 100% of the cost for the 4th and 5th kW.
The decision is therefore a trade-off:
Option 1: Install a 3 kW system to get the best subsidy-to-cost ratio, maximizing the government’s contribution.
Option 2: Install a larger 5 kW system to fully zero-out the high electricity bill, accepting that the extra 2 kW of capacity must be paid for entirely out-of-pocket.
What About Batteries?
The scheme guidelines state that an installation can include battery storage. However, the Central Financial Assistance (CFA) is calculated only on the rated DC capacity of the solar panels, “irrespective of the size of the inverter” or battery. As of 2025, any battery system added for power backup must be 100% self-financed, as it is not covered by the subsidy.
What Solar System Size is Right for You? (2025 Guide)
| Avg. Monthly Bill (Units) | Recommended System Size (kW) | Estimated Central Subsidy | Who is this for? |
|---|---|---|---|
| 0 – 150 units | 1 kW – 2 kW | ₹30,000 – ₹60,000 | Smaller homes with low consumption or limited roof space. |
| 150 – 300 units | 2 kW – 3 kW | ₹60,000 – ₹78,000 | The “sweet spot”. Ideal for average homes, as it maximizes the subsidy. |
| Over 300 units | 3 kW or higher | ₹78,000 (Capped) | Large homes with high consumption (e.g., multiple ACs). The subsidy is maxed out at 3 kW. |
Central Financial Assistance (Subsidy) – PM Surya Ghar Yojana
| System Capacity (kW) | Subsidy Calculation | Total Subsidy (CFA) |
|---|---|---|
| 1 kW | 1 × ₹30,000 | ₹30,000 |
| 2 kW | 2 × ₹30,000 | ₹60,000 |
| 2.5 kW | (2 × ₹30,000) + (0.5 × ₹18,000) | ₹69,000 |
| 3 kW | (2 × ₹30,000) + (1 × ₹18,000) | ₹78,000 (Max Cap) |
| 5 kW – 10 kW | Subsidy capped at 3 kW | ₹78,000 (Max Cap) |
The Complete Step-by-Step Guide: From Application to Subsidy in Your Bank
| Document Category | Document Required | Purpose |
|---|---|---|
| Identification | Aadhaar Card | Applicant identification |
| Financial | PAN Card | Financial verification |
| Electricity | Recent Electricity Bill (not older than 2 months) | Proof of connection & address; must be in applicant’s name |
| Property | Latest Property Tax Receipt or Property Deed | Proof of house ownership |
| Subsidy Transfer | Cancelled Cheque or Bank Passbook Copy | For direct credit of the subsidy amount |
| (If Applicable) | NOC from Property Owner | If the applicant is a tenant |
The scheme uses a “simplified procedure” that is managed entirely through a centralized National Portal. The following is a complete, step-by-step walkthrough of the entire process from registration to receiving the subsidy
Preparation – Your Document Checklist
Before starting the online application, the applicant should gather all necessary documents to ensure a smooth process.
| Document Category | Document Required | Purpose |
|---|---|---|
| Identification | Aadhaar Card | Applicant identification |
| Financial | PAN Card | Financial verification |
| Electricity | Recent Electricity Bill (not older than 2 months) | Proof of connection & address; must be in applicant’s name |
| Property | Latest Property Tax Receipt or Property Deed | Proof of house ownership |
| Subsidy Transfer | Cancelled Cheque or Bank Passbook Copy | For direct credit of the subsidy amount |
| (If Applicable) | NOC from Property Owner | If the applicant is a tenant |
Registration on the National Portal
All applications must go through the single, official government portal.
Go to the official website:
https://pmsuryaghar.gov.in. (The official mobile app, “PM – SURYA GHAR,” can also be used ).Click on “Apply Now” (or “Consumer Login”).
On the registration page, select the State, the Electricity Distribution Company (DISCOM), and enter the Electricity Consumer Number, Mobile Number, and Email.
Verify the mobile number by entering the One-Time Password (OTP) received.
Submit Application & Get Feasibility Approval (TFR)
- Log in to the portal using the registered Consumer Number and Mobile Number.
- Fill out the online application form for rooftop solar with details of the property and proposed system size.
- Submit the application. It is then forwarded digitally to the local DISCOM for “Technical Feasibility Approval” (TFR).
- Important 2025 Simplification: As per the Electricity (Rights of Consumers) Rules, 2020, TFR for all residential solar systems up to 10 kW capacity is “deemed to be approved”. This is a major update that removes a significant bureaucratic delay; for most applicants, this approval should be automatic or near-instant.
Select Your Vendor (The Smart Way)
Once feasibility is approved, the applicant must choose an installer. This is a critical step.
The applicant must select a vendor who is officially registered on the National Portal. Using an unregistered installer will make the application ineligible for the subsidy.
Log in to the portal and navigate to the list of registered vendors, which can be filtered by State and District.
Check the Vendor Rating Programme (VRP): The portal now features a vendor rating system. Vendors are rated (e.g., A++, A+, A) based on their performance, number of installations completed, quality of workmanship, and, most importantly, consumer feedback. This VRP is the consumer’s single best tool to avoid poor service and installation issues. It is strongly advised to select a vendor with a high rating, not just the cheapest quote
Installation & Net Meter Application
After selecting a vendor, the applicant signs a formal agreement.
The vendor completes the physical installation of the solar panels and inverter. The vendor must adhere to all technical standards and use DCR (Domestic Content Requirement) modules, meaning the solar panels must be “Made in India”.
Once the installation is finished, the applicant (or the vendor) logs back into the portal, submits the plant’s technical details, and formally applies for the net meter.
Inspection, Commissioning & Subsidy Payday
This is the final stage, managed by the DISCOM.
The DISCOM receives the net meter application and schedules a site visit to inspect the installation for safety and compliance.
During the visit, the DISCOM officials will install the new net meter (or reconfigure the existing smart meter).
After a successful inspection, the DISCOM will approve the project and generate a commissioning certificate on the portal. This document officially confirms the system is operational and grid-connected.
Final Action: Once the commissioning certificate is visible on the portal, the applicant will be prompted to submit their bank details.
The applicant must log in and upload a scanned copy of their cancelled cheque or bank passbook.
The subsidy (CFA) is then processed and transferred directly into the applicant’s bank account within 30 working days of this final submission
PM Surya Ghar Application Workflow – Who Does What?
| Step | What the Applicant Does | What the Vendor & DISCOM Do |
|---|---|---|
| 1 | Register on pmsuryaghar.gov.in with Consumer No. & Mobile | — |
| 2 | Submit Application for Solar Rooftop online | DISCOM provides “Deemed Feasibility Approval” (for <10kW) |
| 3 | Select a Rated Vendor from the portal’s list | Vendor signs an agreement with the applicant |
| 4 | — | Vendor completes the physical installation |
| 5 | Submit Plant Details on the portal & Apply for Net Meter | — |
| 6 | — | DISCOM inspects the system & installs the net meter |
| 7 | — | DISCOM issues the Commissioning Certificate on the portal |
| 8 | Submit Bank Details & cancelled cheque on the portal | Govt/MNRE transfers subsidy to the applicant’s bank account |
Financing the Rest: How to Get a Low-Interest Solar Loan (2025)
A major barrier to solar adoption has always been the “high upfront cost”.43 Even with a generous ₹78,000 subsidy, a 3 kW system can cost between ₹1.9 lakh and ₹2.6 lakh, leaving a significant gap to be financed.28
The PM Surya Ghar scheme directly solves this problem by integrating a special, low-interest loan program.
Key Loan Features
- Collateral-Free: For residential systems up to 3 kW, these loans are collateral-free, meaning no property or assets are required as security.4
- Low Interest Rate: The interest rate is fixed at a very low, subsidized rate. The benchmark is set around 7% 26, with some banks like Bank of Baroda offering 7% 45 and SBI offering rates as low as 6.00%.24 This is significantly cheaper than a standard personal loan, which can be 10-14%.46
- Accessible: As mentioned in Section 3, these loans (up to ₹2 Lakhs) have “No Requirement” for net annual income, making them accessible to a wide range of homeowners.24
How to Apply for the Loan
- Registration on the pmsuryaghar.gov.in portal is mandatory before applying for the loan.47
- Applicants can apply for the loan seamlessly through the solar portal itself, which integrates with financing options.4
- Alternatively, applicants can use the Jan Samarth Portal (jansamarth.in), the government’s national portal for credit-linked schemes, which is fully integrated with the PM Surya Ghar yojana.4
Almost all major Public Sector Banks (PSBs), private banks, and financial institutions are participating, including SBI, Bank of Baroda, Canara Bank, Union Bank, PNB, HDFC Bank, and ICICI Bank.45
This loan structure is designed to create positive cash flow from day one. As one official press release highlights: a 3 kW system can save a household ~₹1,800 per month on its electricity bill. The monthly EMI (equated monthly installment) for the loan to cover the remaining cost is only ~₹610 per month.
The result is a net monthly saving of ~₹1,265 ($₹1,800 – ₹610$).11 The loan is not a burden; it is the financial tool that makes the savings possible immediately, eliminating the “upfront cost” barrier.
