PM Surya Ghar Explained: The Rooftop Solar Subsidy, Rupee by Rupee
PM Surya Ghar Muft Bijli Yojana is the central government's residential rooftop solar scheme: it pays a direct subsidy into your bank account for installing grid-connected solar, with the pitch of running your home on (near) free electricity. The subsidy is real and substantial — up to ₹78,000 — but how much you get depends on system size, and the economics depend on your tariff. Here is the scheme rupee by rupee.
The subsidy slabs — what you actually receive
The central subsidy for residential consumers is tiered by system capacity:
| System size | Central subsidy | Running total |
|---|---|---|
| 1st kW | ₹30,000 | ₹30,000 |
| 2nd kW | ₹30,000 | ₹60,000 |
| 3rd kW | ₹18,000 | ₹78,000 (cap) |
| 4 kW and above | Nothing further | ₹78,000 |
Two implications follow. First, the subsidy covers a much larger share of a small system — on typical turnkey prices it can be close to half the cost of a 2 kW install, but a much smaller fraction of a 5 kW one. Second, the sweet spot for most households is 2–3 kW, which also happens to match the consumption of a typical urban home. Some states add their own top-up on top of the central amount — our solar calculator carries the verified ones and computes your net cost after both.
Who qualifies
- You own a residential connection in your name (the subsidy is per household, paid against your electricity connection).
- You have roof rights and shadow-free area — roughly 100 sq ft per kW.
- The system is grid-connected through your DISCOM (net metering / net billing per your state's rules) and installed by a vendor empanelled on the national portal.
- Panels must meet the scheme's domestic-content requirements — the empanelled vendor handles this, but it is why quotes for "scheme" systems can differ from open-market ones.
How to apply — the actual flow
- Register on pmsuryaghar.gov.in with your state, DISCOM, consumer number and mobile.
- Apply for the rooftop system — the portal routes a feasibility request to your DISCOM against your sanctioned load.
- Choose an empanelled vendor after feasibility approval and get the system installed.
- Net meter installation and inspection by the DISCOM follows commissioning.
- Submit bank details on the portal; the subsidy is credited directly to your account, typically within weeks of commissioning approval.
Nothing in this flow requires an agent or a fee to a middleman — the portal, the DISCOM and the vendor are the only three parties.
The payback maths after subsidy
What the subsidy really buys you is a shorter payback. The value of every solar unit is the tariff you would otherwise have paid — and because netting removes your most expensive slab units first, households deep in high slabs recover the net cost fastest, often in 3–5 years. Two honest caveats:
- Free-unit states change the picture. If a state scheme already zeroes your bill at your consumption level, solar can only save on usage beyond the free block — run the numbers before signing. Details in our net-metering guide.
- Fixed charges and duty stay. "Muft bijli" refers to energy charges offset by generation; the fixed charge on your sanctioned load and duties still bill as usual.
The solar savings calculator sizes a system from your monthly units and roof area, applies the central + state subsidy, and prints net cost, monthly saving and payback year against your own DISCOM's rates.
Mistakes that cost people money
- Oversizing past the cap. Every kW beyond 3 is unsubsidised — size to your top-slab consumption, not your roof's maximum.
- Ignoring your state's settlement rules. Net metering vs net billing changes the value of exported units materially.
- Paying "processing fees" to agents. The portal flow is direct; there is no official agent channel.
- Believing the vendor's savings slide. It usually assumes the steepest tariff in the country. Check against your own slab ladder on our tariff pages.
Frequently asked questions
How much subsidy does PM Surya Ghar give for rooftop solar?
Is electricity really free under PM Surya Ghar?
How do I apply for the PM Surya Ghar subsidy?
What system size gives the best value under the scheme?
Now check your own bill
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General guidance based on publicly available tariff orders and regulations; specifics vary by state, DISCOM and consumer category. Verify against your DISCOM's official schedule or your printed bill.