Rooftop Solar for Indian Homes: Costs, Savings and the PM Surya Ghar Subsidy

The rooftop solar subsidy in India is now large enough to change the sums for an ordinary household: up to ₹78,000 from the central government for a 3 kW system. Getting it, though, depends on rules that many vendor brochures skip over. This guide sets out what the PM Surya Ghar scheme pays, who qualifies, how the application works and how to estimate your own payback honestly.

Rooftop solar is not new in India, but the scheme launched in February 2024 changed how it is sold. Under the older programme, DISCOMs ran tenders and empanelled vendors at fixed rates. Under PM Surya Ghar, you pick a registered vendor and agree a price directly, and the subsidy is paid to you afterwards. That gives you more choice and also more responsibility, because the price you agree is your own negotiation.

What the PM Surya Ghar scheme is

The PM Surya Ghar: Muft Bijli Yojana was approved on 29 February 2024 with an outlay of ₹75,021 crore, of which ₹65,700 crore is set aside for subsidies to residential consumers. Its aims are one crore rooftop installations and up to 300 units of free or low-cost electricity a month for those households. The MNRE operational guidelines set the implementation period as running until 31 March 2027.

Take-up has been fastest in Gujarat. A PIB Research Unit note from February 2025 counted 3,51,273 Gujarat households among the 8.46 lakh that had installed systems by 27 January 2025, about 41% of the national total.

How much subsidy you get per kW

The central subsidy, called Central Financial Assistance (CFA), is worked out from a benchmark cost rather than your actual quote. The guidelines fix the benchmark at ₹50,000 per kW for the first 2 kW and ₹45,000 for the additional kW. The CFA is 60% of the benchmark for the first 2 kW and 40% for the third kW, which works out to these rates:

The special category rates (₹33,000 and ₹19,800 per kW) apply in Uttarakhand, Himachal Pradesh, Jammu and Kashmir, Ladakh, the north-eastern states including Sikkim, the Andaman and Nicobar Islands, and Lakshadweep. The 1.5 kW, 2.5 kW and above-3 kW rows apply the same per-kW rates, following the worked examples in the guidelines.

Three details from the same document matter when you compare quotes:

• Panels decide the subsidy, not the inverter. The CFA is calculated on the rated DC capacity of the modules, whatever the inverter size.
• Batteries add nothing. Batteries, trackers and wind hybrids can be part of the system, but the subsidy still follows solar module capacity only.
• Housing societies have their own route. Group housing societies and RWAs can claim ₹18,000 per kW for common facilities such as lifts, lighting and EV charging, up to 500 kW, limited to 3 kW per house.

The guidelines also let states add their own subsidy on top of the central amount, routed through the national portal. Check your DISCOM's portal for any current state top-up instead of relying on a figure from a vendor.

Who is eligible, and the rules that trip people up

The PIB summary lists four basic conditions: the household must be an Indian citizen, own a house with a roof suitable for panels, have a valid electricity connection, and not have taken any other subsidy for solar panels. The guidelines add conditions that matter just as much in practice:

• Grid-connected only. Off-grid systems do not qualify. Systems on a roof, terrace, balcony or elevated structure do, and an elevated structure needs at least 8 feet of ground clearance at its lowest point.
• Domestic Content Requirement (DCR). Modules must be made in India from cells made in India. Using non-DCR modules anywhere in the installation makes the whole system ineligible.
• Registered vendors only. The installer must be registered on the national portal.
• One subsidy per system. A system can claim CFA once. Moving an installed system to a new location does not make it eligible again. A household that got a subsidy earlier and later expands can claim only for the balance up to 3 kW.
• Residential connections only. Commercial, industrial and government connections get no CFA.

The subsidy is calculated on a benchmark, not on your quote. A higher price does not bring a higher subsidy.

How to apply on pmsuryaghar.gov.in, step by step

The National Portal for Rooftop Solar handles the whole process. PIB describes nine steps, and the guidelines fill in what happens at each one:

1. Register on the portal. Choose your state and DISCOM and enter your mobile number.
2. Log in with your consumer number and mobile number. Your electricity bill shows your consumer account number.
3. Apply for rooftop solar. Fill in the online form. The portal creates an application ID and an e-token linked to your profile.
4. Feasibility. Under the Electricity (Rights of Consumers) Rules, applications for systems up to 10 kW are deemed accepted without a separate DISCOM feasibility approval. Where a state has not put that into practice yet, you upload the documents it asks for.
5. Choose a registered vendor and agree terms. You and the vendor agree the system design, components and price. The guidelines include a model agreement covering a five-year comprehensive maintenance contract.
6. Installation. The vendor installs the system and should explain cleaning and safety.
7. Upload plant details and apply for the net meter. This includes geo-tagged photographs. The vendor can help through your login.
8. DISCOM inspection and commissioning. The DISCOM inspects the system, fits the net meter and approves the application. You then download the commissioning certificate from the portal.
9. Submit bank details and redeem the e-token. Upload a cancelled cheque or similar proof. The guidelines say the CFA is processed within 15 days of DISCOM approval. If you took a loan, the subsidy goes to the loan account first.

On finance, PIB says collateral-free loans at about 7% interest are available for systems up to 3 kW. The guidelines describe these as standard products priced around the repo rate plus 0.5 percentage points, so the actual rate will move with RBI policy.

Net metering basics

The MNRE rooftop solar FAQ explains net metering simply. Your panels supply your home first, and any surplus is exported to the grid. At night or on cloudy days you draw from the grid. A bi-directional meter records both flows, and at the end of the billing period you pay only for the net energy used. Under net billing, any surplus left at the end of the billing cycle is not carried forward. The DISCOM buys it at a pre-decided tariff instead.

The difference matters because surplus export is usually credited at a lower rate than the retail tariff you pay. The more of your own generation you use in the daytime, the better the economics.

In Gujarat, the GERC amended its net-metering regulations in 2022 to allow net metering for systems from 1 kW to 1 MW. A Fifth Amendment in late 2025 removed the need for a separate written connectivity agreement for PM Surya Ghar systems. The commissioning date now counts as the start of the agreement, and the DISCOM must tell you in writing what rate it will pay for surplus power.

How much a system generates

MNRE's FAQ gives two figures worth remembering. A 1 kWp system needs about 10–12 square metres of shade-free area and can generate 4 to 5.5 units on a clear sunny day. Average output over a year is lower, because not every day is clear. PIB's own planning figure is that a 3 kW system can generate over 300 units a month on average, roughly 3.3 units per kW per day.

PIB also matches system size to consumption. For a household using 0–150 units a month it suggests 1–2 kW, for 150–300 units 2–3 kW, and above 3 kW for more than 300 units. Check twelve months of bills rather than one, because air-conditioning in April and May can double summer use.

The scheme's technical specifications also say what quality to expect. Modules must keep more than 90% of rated output for the first 10 years and more than 80% over the following 15, with degradation below 0.5% a year. The vendor must warrant the whole system for five years from commissioning. Ask for the shadow analysis report the specifications require, because a water tank or a neighbour's new floor can cut output for years.

A worked payback example (illustrative only)

The numbers below are illustrative, not a quote. They show the method, so you can repeat it with your own figures.

Assumptions:

• A 3 kW grid-connected system in a non-special-category state.
• System cost equal to the MNRE benchmark: ₹50,000 × 2 + ₹45,000 = ₹1,45,000. Real quotes vary with roof type, structure height, inverter brand and wiring runs. A second scenario uses an assumed ₹1,80,000.
• Central subsidy of ₹78,000 and no state top-up.
• Generation of 300 units a month (3,600 units a year), in line with PIB's average for 3 kW.
• Every unit generated replaces a unit you would otherwise buy, at an assumed effective tariff of ₹6 per unit, with a lower case of ₹4. These are placeholders. Use the effective rate from your own bill.
• No loan interest, no panel degradation, and no maintenance costs after the five-year vendor contract.

Two effects make real paybacks longer than this simple sum. First, surplus exported under net billing earns the DISCOM's purchase rate, which is usually below the retail tariff. Second, the vendor's comprehensive maintenance contract lasts five years, while the module performance specification runs to 25, so budget for repairs, and possibly a replacement inverter, after the contract ends. Ask the inverter maker for its warranty period. Slab tariffs work the other way: if solar removes your most expensive top-slab units, your saving per unit can be higher than your average rate. Put your actual tariff order into the sum rather than an average from the internet.

If you are planning solar as part of a wider efficiency upgrade, our guide to designing an eco-friendly smart home ecosystem covers shifting appliance use into solar hours, which raises the share of generation you use yourself.

Questions to ask before you sign

• Are the modules DCR-compliant and on the ALMM list, and will you show the RFID or serial details?
• What exactly is the DC module capacity? The subsidy follows this figure.
• Is the price inclusive of the net meter, structure, earthing, lightning arrestor and GST?
• What does the five-year maintenance contract cover, and who cleans the panels?
• Can I see the shadow analysis and the structure design for wind loading?
• Will you handle the portal uploads, or will I?

The bottom line

For a household with its own roof, a residential connection and steady daytime use, PM Surya Ghar makes a 2–3 kW system much cheaper than it would otherwise be. The subsidy is fixed per kW and capped at 3 kW, so the remaining variable is the price you agree with the vendor. Get at least two quotes from registered vendors, check DCR compliance, size the system from a year of bills, and work out payback with your own tariff. If you live in a flat, ask your RWA about a common-facilities system instead.

Frequently asked questions

Can I get the subsidy for a system larger than 3 kW?

You can install a larger system, but the central subsidy stays at ₹78,000 (₹85,800 in special category states). A 6 kW system receives the same CFA as a 3 kW one.

Do I need a battery?

No. The scheme supports grid-connected systems, and net metering uses the grid as your store. Battery hybrid systems can be eligible, but the battery itself adds nothing to the subsidy.

Can tenants or flat owners apply?

Individual CFA requires a residential connection and a suitable roof you can install on. Flat owners usually lack individual roof rights, but housing societies and RWAs can claim for common-area systems at ₹18,000 per kW.

How long does the subsidy take?

The guidelines say the CFA is processed within 15 days of DISCOM approval. PIB's application flow says you should receive it within 30 days of submitting bank details. Delays more often happen earlier, at inspection and net-meter installation.

Is the scheme still open?

The guidelines set the implementation period up to 31 March 2027 and cap the scheme at one crore active applications. Check the portal for the current status before you commit.

Sources

1. Amendment in Guidelines for Implementation of PM-Surya Ghar: Muft Bijli Yojana for the component of “CFA to residential consumers” (with Operational Guidelines dated 07.06.2024), Ministry of New and Renewable Energy, 2025.
2. Amendment in Guidelines for Implementation of PM-Surya Ghar: Muft Bijli Yojana for the component of “CFA to residential consumers” (notice page), Ministry of New and Renewable Energy, 2025.
3. PM Surya Ghar: Muft Bijli Yojana Turns One – Powering India’s Solar Revolution, Press Information Bureau Research Unit, 2025.
4. Frequently Asked Questions: Solar Rooftop System, Press Information Bureau Research Unit (Ministry of New and Renewable Energy), 2022.
5. National Portal for Rooftop Solar, Ministry of New and Renewable Energy, 2026.
6. Grid Connected Rooftop Solar Programme, Ministry of New and Renewable Energy, 2026.
7. Gujarat Allows Net Metering for Rooftop Solar Systems of 1 kW to 1 MW, Mercom India, 2022.
8. Gujarat Amends Net-Metering Rules to Ease Rooftop Solar Adoption Under PM Surya Ghar Scheme, Energetica India, 2025.