Complete guide to PM Surya Ghar Muft Bijli Yojana -- get free solar panels for your home, save Rs 15,000-18,000 per year on electricity, and earn subsidy up to Rs 78,000.
India is racing toward its solar energy targets, and the government wants every household to be part of this green revolution. PM Surya Ghar Muft Bijli Yojana, launched in February 2024 with a budget of Rs 75,021 crore, aims to install rooftop solar panels on 1 crore homes across India. The scheme provides substantial subsidies that can reduce your installation cost by 60-70% and cut your electricity bill to near zero.
If you have been thinking about going solar, 2026 is the best time. Here is everything you need to know.
What Is PM Surya Ghar Muft Bijli Yojana?
PM Surya Ghar Muft Bijli Yojana (also known as PM Surya Ghar Muft Bijli Yojana or Rooftop Solar Scheme) is a central government subsidy programme that helps households install rooftop solar panels at significantly reduced costs.
Key highlights:
- Free electricity of up to 300 units per month from solar panels
- Central government subsidy of up to Rs 78,000
- Low-interest loans available for remaining costs
- Excess electricity can be sold back to the grid (net metering)
- Applicable to all residential electricity consumers across India
Subsidy Structure (2026 Updated)
The subsidy depends on the capacity of the solar system you install:
| Solar System Capacity | Central Subsidy | Approximate Total Cost | Your Cost After Subsidy |
|---|---|---|---|
| 1 kW | Rs 30,000 | Rs 60,000 -- Rs 70,000 | Rs 30,000 -- Rs 40,000 |
| 2 kW | Rs 60,000 | Rs 1,10,000 -- Rs 1,30,000 | Rs 50,000 -- Rs 70,000 |
| 3 kW and above | Rs 78,000 | Rs 1,50,000 -- Rs 2,00,000 | Rs 72,000 -- Rs 1,22,000 |
Note: The subsidy is capped at Rs 78,000 regardless of the system size beyond 3 kW. State governments may offer additional subsidies. Rates vary by vendor and location.
How Much Can You Save?
A 3 kW rooftop solar system generates approximately 12-15 units of electricity per day (360-450 units per month), which is enough for a typical Indian household. At an average electricity rate of Rs 7-8 per unit:
- Monthly savings: Rs 2,500 -- Rs 3,500
- Annual savings: Rs 30,000 -- Rs 42,000
- 25-year savings: Rs 7,50,000 -- Rs 10,50,000 (with increasing electricity rates)
- Payback period: 3-5 years after subsidy
Eligibility Criteria
To apply for PM Surya Ghar Muft Bijli Yojana:
- Residential consumer: You must be a residential electricity consumer with an active connection.
- Roof ownership: You should own the roof or have permission from the building owner.
- Roof space: Approximately 10 sq. metres per kW of solar capacity is needed. A 3 kW system needs around 30 sq. metres (about 300 sq. ft) of shadow-free roof area.
- No previous subsidy: You should not have availed rooftop solar subsidy under any other central government scheme.
- Indian citizen: The applicant must be an Indian citizen.
There is no income limit or BPL requirement. Any residential consumer can apply regardless of income level.
How to Apply Online: Step-by-Step
Step 1: Register on the Portal
- Visit the official website: pmsuryaghar.gov.in
- Click on "Apply for Rooftop Solar"
- Enter your state, electricity distribution company (DISCOM), and consumer account number
- Enter your mobile number and verify with OTP
- Complete registration with basic details (name, address, Aadhaar)
Step 2: Wait for DISCOM Feasibility Approval
- Your DISCOM will verify your electricity connection and assess technical feasibility
- This typically takes 15-30 days
- You will receive an SMS/email notification once approved
Step 3: Choose a Vendor and Install
- After feasibility approval, select a registered vendor from the portal's empanelled list
- Get quotes from multiple vendors (recommended: at least 3 quotes)
- The vendor will install the solar panels and apply for net meter installation
- Installation typically takes 1-3 days
Step 4: Net Meter Installation
- Your DISCOM will install a net meter (bidirectional meter) at no extra cost
- This meter tracks both electricity consumed from the grid and electricity exported to the grid
- Net meter installation takes 15-30 days after solar installation
Step 5: Commissioning and Subsidy
- After net meter installation, the system is commissioned
- Upload commissioning report, photos, and bank details on the portal
- Subsidy amount is directly credited to your bank account within 30-60 days
Understanding Net Metering
Net metering is what makes rooftop solar truly economical. Here is how it works:
- Daytime: Your solar panels generate electricity. What you consume is free. What you do not consume is exported to the grid, and your meter runs backwards.
- Nighttime: You draw electricity from the grid normally.
- Monthly bill: You pay only for the NET consumption (grid units consumed minus solar units exported).
- Excess generation: If you export more than you consume, most DISCOMs carry forward the credit. Some states pay you for excess units at Rs 2-3 per unit.
State-Wise Additional Benefits
Several states offer additional subsidies or benefits on top of the central subsidy:
| State | Additional Benefit |
|---|---|
| Gujarat | Additional Rs 10,000 subsidy for BPL families |
| Maharashtra | Accelerated net metering approval process |
| Rajasthan | Additional state subsidy of Rs 10,000-15,000 |
| Karnataka | Reduced DISCOM processing fees |
| Kerala | Interest-free loans through KSEB |
| Tamil Nadu | Priority approval for TANGEDCO consumers |
| Uttar Pradesh | Additional subsidy for rural households |
| Madhya Pradesh | Free installation for BPL families |
*Benefits vary by state. Check your state energy department for the latest information.*
Components of a Rooftop Solar System
When a vendor installs solar panels, your system typically includes:
- Solar Panels: Monocrystalline (most efficient) or polycrystalline panels. The 2026 standard is 540W-600W per panel.
- Solar Inverter: Converts DC power from panels to AC power for home use. Grid-tied inverters are mandatory for net metering.
- Mounting Structure: Galvanised iron or aluminium frames that hold panels on your roof.
- Wiring and Protection: DC and AC cables, junction boxes, MCBs, and earthing system.
- Net Meter: Provided and installed by your DISCOM.
Panel Technology: Mono vs Poly vs Bifacial
| Feature | Monocrystalline | Polycrystalline | Bifacial |
|---|---|---|---|
| Efficiency | 20-22% | 16-18% | 21-24% |
| Cost | Rs 25-30/watt | Rs 20-25/watt | Rs 30-35/watt |
| Lifespan | 25-30 years | 25 years | 30+ years |
| Best for | Limited roof space | Budget installations | Maximum generation |
For most homes, monocrystalline panels offer the best balance of efficiency and cost.
Maintenance and Lifespan
Solar panels require minimal maintenance:
- Cleaning: Wash panels with water once every 2-4 weeks to remove dust. In dusty areas, clean weekly.
- Inspection: Annual inspection of wiring, inverter, and mounting structure.
- Inverter replacement: Inverters typically last 10-15 years. Budget for one replacement over the 25-year panel lifespan.
- Warranty: Most panels come with 25-year performance warranty (minimum 80% efficiency at year 25). Inverters have 5-10 year warranty.
Common Questions About Solar Installation
Will Solar Panels Damage My Roof?
No, when installed properly by a registered vendor. Mounting structures are designed to be non-invasive. Waterproofing is maintained, and the structure can be removed without damaging the roof.
What Happens on Cloudy or Rainy Days?
Solar panels still generate electricity on cloudy days, though at reduced efficiency (20-40% of peak output). On rainy days, generation drops further. Your net metering arrangement ensures you draw from the grid when solar generation is insufficient.
Can I Install Solar Panels in a Rented House?
Technically yes, but you need written permission from the landlord. The subsidy is linked to the electricity consumer number, so the tenant who applies must be the registered consumer.
Can I Get a Loan for the Remaining Amount?
Yes. Under PM Surya Ghar Yojana, banks offer collateral-free loans at 7-8% interest for the balance amount after subsidy. SBI, Bank of Baroda, and Indian Bank have dedicated solar loan products with EMIs as low as Rs 1,200 per month for a 2 kW system. Use our EMI calculator to estimate your monthly repayment.
How to Choose the Right Vendor
The PM Surya Ghar portal lists empanelled vendors for each state. Tips for selecting:
- Check ratings and reviews on the portal
- Compare at least 3 quotes -- prices can vary by 15-20%
- Ask about after-sales service -- who handles maintenance and warranty claims?
- Verify BIS certification of panels and inverter
- Check installation timeline -- reputed vendors complete installation within 7-10 days of order
- Ask for references -- speak to previous customers in your area
Is Solar Worth It in 2026?
Absolutely. With the central subsidy covering 40-60% of costs, a rooftop solar system pays for itself in 3-5 years and then provides free electricity for 20+ more years. As electricity rates continue to rise (average 5-7% annually), your savings only increase over time.
For a Rs 72,000 investment (3 kW system after subsidy), you earn returns equivalent to a 25-30% annual return through electricity savings -- far better than any fixed deposit or recurring deposit. Use our SIP calculator to compare: even if you invested Rs 72,000 in a mutual fund SIP, solar panels would likely deliver better effective returns through guaranteed bill savings.
*This article is for educational purposes and does not constitute financial advice. Subsidy amounts and eligibility criteria are subject to change by the government.*
More frequently asked questions
How much subsidy will I get under PM Surya Ghar Yojana?
The central government provides Rs 30,000 for a 1 kW system, Rs 60,000 for a 2 kW system, and Rs 78,000 for 3 kW and above. Some states offer additional subsidies on top of this.
Is PM Surya Ghar Yojana free?
The scheme provides a substantial subsidy but is not entirely free. You pay the balance amount after subsidy, typically Rs 30,000 to Rs 1,22,000 depending on system size. Loans are available for the remaining cost.
Who can apply for PM Surya Ghar Muft Bijli Yojana?
Any Indian citizen who is a residential electricity consumer with an active connection and owns the roof (or has permission from the owner) can apply. There is no income limit.
How long does the PM Surya Ghar application process take?
The complete process from application to commissioning typically takes 2-4 months: 15-30 days for feasibility approval, 1-3 days for installation, 15-30 days for net meter, and 30-60 days for subsidy credit.
Can I sell excess solar electricity to the grid?
Yes, through net metering. Excess electricity generated by your panels is exported to the grid, and you receive credit on your electricity bill. Some states also pay a feed-in tariff for surplus units.
What is the lifespan of rooftop solar panels?
Solar panels typically last 25-30 years with a performance warranty guaranteeing at least 80% efficiency at year 25. Inverters last 10-15 years and may need one replacement during the panel lifespan.
Do solar panels work in monsoon or winter?
Yes, solar panels work in all seasons but with varying efficiency. During monsoon, generation drops to 20-40% of peak. In winter, generation is 60-80% of peak. Net metering compensates for low-generation periods.
How much roof space do I need for solar panels?
You need approximately 10 sq. metres (about 100 sq. ft) of shadow-free roof area per kW. A 3 kW system needs around 30 sq. metres (300 sq. ft). South-facing roofs are ideal in India.