India's largest residential solar programme is now in full swing. If you own a home, there is a very real chance you qualify for a central government subsidy that covers 30 to 60 percent of your solar installation cost.
This is the complete guide to PM Surya Ghar Muft Bijli Yojana in 2026: what the scheme actually offers, who qualifies, how to apply correctly, and what the process looks like once your application goes in.
What is PM Surya Ghar Muft Bijli Yojana?
PM Surya Ghar Muft Bijli Yojana, which translates to the PM Solar Home Free Electricity Scheme, was launched by the Government of India in February 2024 with a budget of Rs 75,021 crore. The scheme's goal is to install rooftop solar on one crore (10 million) Indian households by 2026-27, and to provide those households with up to 300 units of free electricity every month.
The "free electricity" in the name refers to the combination of solar generation and net metering, where excess power your panels produce is exported to the grid and your DISCOM credits you for it. A well-sized system in a sunny city can reduce your electricity bill to near zero and, in some cases, generate a small credit.
The central government subsidy is what makes the economics work. Without any subsidy, a 3kW rooftop solar system in India costs roughly Rs 1.5 to 1.8 lakh. With the PM Surya Ghar subsidy applied, the effective cost drops significantly, making the payback period far shorter than it would otherwise be.
How much subsidy does PM Surya Ghar offer in 2026?
The subsidy is calculated based on the system capacity you install. The current central government subsidy structure under PM Surya Ghar is:
| System size | Central subsidy |
|---|---|
| Up to 2 kW | Rs 30,000 per kW (up to Rs 60,000 for 2 kW) |
| 2 kW to 3 kW | Rs 30,000 for the first 2 kW + Rs 18,000 for the third kW |
| Above 3 kW | Capped at Rs 78,000 total |
The maximum central government subsidy you can receive is Rs 78,000, which applies to systems of 3 kW and above.
Many states offer an additional state-level subsidy on top of this central amount, which can push the total benefit higher. Maharashtra, Gujarat, Rajasthan, and Haryana are among the states with the most active additional schemes.
Note: Subsidy amounts are subject to revision by the government. Always verify the current figures on the official PM Surya Ghar portal (pmsuryaghar.gov.in) or your DISCOM's website before signing any installer contract.
Who is eligible for PM Surya Ghar?
The eligibility criteria are broader than most homeowners expect.
Property criteria
- You own a residential property with a usable rooftop. A portion of a shared terrace also qualifies in many cases.
- The property has an active electricity connection from a licensed DISCOM.
- Your rooftop receives reasonable sunlight. South-facing is ideal, but east and west-facing roofs also work.
Household criteria
- The connection must be under a domestic or residential tariff category.
- There is no income restriction. The scheme applies to all income groups.
- You must not have previously claimed a rooftop solar subsidy under any central government scheme for the same property.
Installer criteria
- The installation must be done by a vendor registered on the PM Surya Ghar national portal.
- Using an unregistered installer means you will not receive the subsidy, regardless of the quality of the system installed.
Apartments and housing societies can also apply collectively under the scheme. Each flat can claim the subsidy for their proportional share of the rooftop system, governed by RWA (Resident Welfare Association) guidelines that vary by state.
What system size should you install?
Choosing the right system size is worth thinking through carefully, because the subsidy structure rewards systems of 3 kW and above with the maximum benefit.
A rough guide for Indian households:
| Monthly electricity consumption | Recommended system size |
|---|---|
| Below 200 units | 1 to 2 kW |
| 200 to 400 units | 2 to 3 kW |
| 400 to 600 units | 3 to 5 kW |
| Above 600 units | 5 kW and above |
For most urban Indian households, a 3 kW system is often the right starting point. It maximises the central subsidy while covering a substantial portion of monthly consumption for a typical 3BHK with AC, refrigerator, washing machine, and regular lighting.
How to apply for PM Surya Ghar subsidy: step-by-step
The application process runs entirely online through the national PM Surya Ghar portal.
Step 1: Register on the national portal
Go to pmsuryaghar.gov.in and register using your mobile number and electricity consumer number. Your consumer number is printed on your electricity bill. After OTP verification, you will be asked to fill in basic property details including your state, DISCOM, and the sanctioned load on your connection.
Step 2: Apply for feasibility approval
Submit an online application for rooftop solar installation. Your DISCOM will review this and confirm whether your connection and rooftop are technically suitable for grid-connected net-metered solar. This step typically takes 7 to 15 working days, though timelines vary by DISCOM.
Do not commission any installation before receiving feasibility approval. Doing so disqualifies you from the subsidy.
Step 3: Select a registered vendor and install
After feasibility approval, choose a vendor from the list of registered installers on the portal. You can filter by state, city, and system size. Get at least two or three quotes before committing, as prices vary meaningfully even among registered vendors.
Once you select a vendor, the installation typically takes 1 to 3 days for a standard residential system. Make sure the installer provides a proper invoice, warranty documentation for panels and inverter, and a net meter application form.
Step 4: Apply for net meter installation
After your solar system is installed, your DISCOM needs to replace your existing electricity meter with a net meter, one that measures both power you draw from the grid and surplus solar power you send back. Your installer should assist with this application.
Net meter installation timelines vary significantly by DISCOM, anywhere from 2 weeks to 3 months in some states. This is one of the most common frustration points in the process.
Step 5: Submit commissioning certificate and bank details
Once the net meter is installed and operational, the DISCOM issues a commissioning certificate. Upload this certificate to the PM Surya Ghar portal along with your bank account details where the subsidy will be transferred.
The central subsidy is then processed as a direct benefit transfer into your bank account. Processing time is typically 30 to 60 days after certificate submission, though some states have seen longer delays.
Common mistakes that delay or disqualify your application
Using an unregistered installer is the single most common reason applications fail. Always verify your installer's registration on the portal before signing any contract.
Applying after installation is another frequent error. The feasibility approval must come before installation, not after. Many homeowners skip this step and find their subsidy claim rejected.
Consumer number mismatch is easy to miss. The name and details on the portal must match your electricity bill exactly. Any discrepancy causes the application to stall at DISCOM verification.
Not following up on net meter installation costs time. DISCOMs are often slow on this step. Follow up proactively with your DISCOM's solar helpdesk or visit their office after 3 to 4 weeks if you have not heard back.
Choosing system size purely for maximum subsidy can work against you. Installing a 3 kW system when your consumption justifies 2 kW will result in excess generation you cannot fully utilise. Right-size based on your actual consumption, not just subsidy calculations.
What to realistically expect after installation
In the first month after commissioning, you will likely see a reduced electricity bill but not zero. Your system needs a full billing cycle to demonstrate its output, and net metering credits accumulate over time.
By month 3 or 4, assuming the system is performing as specified, most households see their bills drop 70 to 90 percent. In high-sunlight cities like Jaipur, Ahmedabad, and Nagpur, many households report bills under Rs 200 per month even in summer.
The subsidy arrives as a bank transfer, usually within 60 to 90 days of uploading your commissioning certificate. Keep a copy of every document including the commissioning certificate, net meter application receipt, and your portal application ID, as you may need them if there are processing delays.
Frequently asked questions
Can renters apply for PM Surya Ghar?
No. The scheme is for property owners with an active residential electricity connection in their name. Renters cannot apply unless the property owner installs the system.
Does the subsidy amount change if I install a larger system?
The central government subsidy is capped at Rs 78,000 for systems of 3 kW and above. Installing a 5 kW or 10 kW system does not increase the central subsidy, though some states offer additional state subsidies for larger systems.
Can I get a loan to cover the remaining cost after subsidy?
Yes. Several nationalised banks offer dedicated solar loans under PM Surya Ghar, often at concessional rates. SBI, Bank of Baroda, and Canara Bank have specific solar loan products linked to the scheme. Your installer or DISCOM should be able to guide you toward these options.
What if my DISCOM takes very long to install the net meter?
This is unfortunately common. Escalate in writing to your DISCOM's grievance redressal officer. If that does not resolve it, the PM Surya Ghar portal has a grievance registration mechanism at the national level. Document every step of your follow-up.
Is the subsidy taxable?
The central subsidy received under PM Surya Ghar is currently not treated as taxable income for individuals. Tax treatment of subsidies can change, so consult a tax advisor if you are dealing with a large amount.
Summing up
PM Surya Ghar is one of the most accessible government subsidy programmes available to Indian homeowners right now. The process has real friction in the form of DISCOM delays, net meter backlogs, and portal issues, but the financial outcome for households that complete it is significant. A 3 kW system in most Indian cities pays back in 4 to 5 years after subsidy, and then generates effectively free electricity for the remaining 20 or more years of the panel's life.
If you are considering going solar in 2026, the first step is to register on the PM Surya Ghar portal and check your DISCOM's feasibility. Everything else follows from there.