India’s rooftop solar sector crossed 12 GW of cumulative capacity in 2025. The Ministry of New and Renewable Energy (MNRE) is the driving force — through the Rooftop Solar Phase II programme and the PM Surya Ghar Muft Bijli Yojana, the central government is pushing hard toward its target of 40 GW of rooftop solar nationally.
For solar installers operating in India, MNRE’s rooftop policy is the foundation everything else rests on. Subsidies, product approvals, vendor registrations, and the DISCOM application workflow all trace back to MNRE guidelines.
MNRE Rooftop Solar Phase II: Programme Structure
Phase II of MNRE’s Rooftop Solar Programme succeeded the earlier Feed-in Tariff-based Phase I. Where Phase I relied on fixed FiTs paid to generators, Phase II shifted to net metering combined with capital subsidies — a more sustainable model for long-term market development.
The Phase II framework operates through three channels:
Residential: PM Surya Ghar Muft Bijli Yojana — central financial assistance (subsidy) for systems up to 3 kW, with net metering for all excess export. Target: 1 crore households.
Commercial and Industrial: Systems up to 500 kW are encouraged under Phase II through net metering and open access frameworks. No central subsidy, but state-level subsidies or accelerated depreciation benefits may apply.
Social Sector: Government buildings, educational institutions, and hospitals receive targeted support through SECI (Solar Energy Corporation of India) tenders and state government schemes.
Eligible System Sizes
| Category | Maximum Size | Central Subsidy | Notes |
|---|---|---|---|
| Residential | No hard limit | Up to Rs. 78,000 (for first 3 kW) | Subsidy via PM Surya Ghar |
| Commercial / Industrial | Up to 500 kW (net metering) | None (central) | State subsidies may apply |
| Government Buildings | Project-specific | SECI tenders | Separate procurement process |
| Housing Society (common area) | Up to 500 kW | As per SERC rules | State-specific group NM rules |
For residential consumers, system size is practically limited by the sanctioned load under most state SERC net metering regulations. A consumer with a 5 kW sanctioned load can install up to 5 kW and receive net metering, but only the first 3 kW attracts the central subsidy.
PM Surya Ghar Subsidy Structure
The central financial assistance (CFA) under PM Surya Ghar is structured by system size:
| System Size | CFA Rate | CFA Amount |
|---|---|---|
| First 2 kW | Rs. 30,000 per kW | Rs. 60,000 |
| 2 kW to 3 kW (additional 1 kW) | Rs. 18,000 per kW | Rs. 18,000 |
| Above 3 kW | Nil | — |
| Maximum CFA | — | Rs. 78,000 |
State Top-Up Subsidies
Several states offer additional subsidies on top of the central CFA. Gujarat’s Surya Gujarat scheme, Karnataka’s state subsidy, and Rajasthan’s RRECL schemes can add Rs. 10,000–Rs. 30,000 or more per installation. Always check the current state scheme before quoting total subsidies to customers.
The CFA is disbursed directly to the beneficiary’s bank account within 30 days of the DISCOM uploading the commissioning report to the national portal. Installers do not receive the subsidy — customers do.
Empanelled Vendor Requirement
Only vendors registered on the PM Surya Ghar national portal can handle subsidy-eligible installations. Empanelment is DISCOM-specific — a vendor empanelled under one DISCOM may need separate registration to work in another DISCOM’s territory.
Empanelment requirements typically include:
- Valid firm registration (partnership deed, company registration, or proprietorship proof)
- Electrical contractor licence issued by the state licensing authority
- Experience proof (minimum installation experience varies by DISCOM)
- Commitment to use ALMM-listed components
- Bank account details for transaction tracking
The empanelment process runs through pmsuryaghar.gov.in. DISCOMs review applications and approve empanelment, typically within 10–15 working days.
Pro Tip: Multi-DISCOM Empanelment
If you operate across more than one DISCOM’s territory, register separately with each. Some states (like Rajasthan with 3 DISCOMs) require separate empanelment for each utility. A single central registration on the national portal is the starting point, but DISCOM-level approval is required before you can be selected by customers in that territory.
Technical Standards for MNRE Projects
All components in PM Surya Ghar and other MNRE-programme projects must meet two layers of compliance: BIS certification and ALMM listing.
Solar Modules: IS 14086
IS 14086 is the BIS standard for crystalline silicon solar PV modules:
- Part 1: Performance testing (equivalent to IEC 61215)
- Part 2: Safety qualification testing (equivalent to IEC 61730)
The BIS Quality Control Order 2022 made IS 14086 certification mandatory for all solar modules sold in India, including imported modules. Without a valid BIS licence, a module cannot be legally sold or installed.
Solar Inverters: IS 16221
IS 16221 covers grid-connected solar inverter requirements:
- Part 1: General and anti-islanding requirements (equivalent to IEC 62116)
- Part 2: Safety requirements
All inverters in PM Surya Ghar installations must be BIS-certified to IS 16221 and appear on MNRE’s ALMM List II.
ALMM: The Approved List
Beyond BIS certification, MNRE maintains the ALMM (Approved List of Models and Manufacturers). BIS certification is a prerequisite for ALMM listing, but the two are separate:
| Certification | Administered by | Purpose |
|---|---|---|
| BIS IS 14086 / IS 16221 | Bureau of Indian Standards | Safety and performance — mandatory for all sales |
| ALMM List I / List II | MNRE | Eligibility for subsidised government projects |
A product can be BIS-certified but not ALMM-listed — it can be sold commercially but cannot be used in PM Surya Ghar or government tenders. For subsidy projects, both are required.
Using solar design software that automatically flags ALMM-listed products during component selection prevents specification errors that can delay projects or void subsidies.
DISCOMs as Implementing Agencies
MNRE does not directly interact with consumers for individual installations. DISCOMs are the ground-level implementing agencies. Their role includes:
- Vendor empanelment: Validating installer registrations on the national portal
- Feasibility assessment: Checking transformer capacity for the proposed solar connection
- Technical sanction: Issuing written approval for the grid connection
- Net meter installation: Procuring and installing the bidirectional meter
- Commissioning report: Uploading the commissioning certificate to trigger subsidy disbursement
DISCOM performance varies significantly across states. In Karnataka (BESCOM), Maharashtra (MSEDCL), and Gujarat, online portals and defined timelines make the process relatively predictable. In states with manual processes or high application backlogs, delays of 60–90 days are common.
RESCO vs CAPEX Model
RESCO Installations Are Not Eligible for PM Surya Ghar Subsidy
PM Surya Ghar central financial assistance applies only to owned installations (CAPEX model) where the consumer purchases the system. RESCO/PPA arrangements where a third party owns the system are explicitly excluded from the central subsidy.
| Feature | CAPEX Model | RESCO / PPA Model |
|---|---|---|
| System ownership | Consumer | RESCO company |
| Upfront cost | High (net of subsidy) | Zero or minimal |
| PM Surya Ghar CFA | Eligible | Not eligible |
| Net metering | Consumer retains credits | Depends on PPA structure |
| Long-term savings | Higher (system owned) | Lower (paying PPA rate) |
| Best for | Owner-occupied residential | Commercial/industrial without capital |
For residential consumers with access to concessional PM Surya Ghar loans, the CAPEX model nearly always delivers better long-term economics. The RESCO model is more relevant for commercial and industrial customers who prefer off-balance-sheet financing.
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State Variation in MNRE Implementation
MNRE sets the national framework; states implement it. Key variables:
Subsidy disbursement speed: Some states process the DISCOM commissioning report within days of upload; others take 60+ days to upload the report itself.
Transformer capacity constraints: Urban areas in Maharashtra and Tamil Nadu face frequent feasibility rejections where transformers are saturated. MNRE encourages DISCOMs to upgrade infrastructure, but progress is uneven.
State top-up subsidies: Gujarat’s Surya Gujarat, Rajasthan’s RRECL scheme, Karnataka’s state contribution, and UP’s Mukhyamantri scheme all supplement the central CFA. The combined subsidy amount varies by state and changes annually.
Empanelled vendor lists: Some states actively manage their vendor lists and delist non-performing contractors. Others have loose oversight. Checking whether your empanelment is current and active before committing to a project timeline is good practice.
The PM Surya Ghar Application Workflow
Customer Registers on National Portal
Customer visits pmsuryaghar.gov.in and registers with electricity consumer number, Aadhaar, and mobile number. OTP verification completes registration.
Application Submission and Vendor Selection
Customer fills in the system size, rooftop details, and selects an empanelled vendor from the portal list. Vendor conducts site survey and confirms the technical proposal.
DISCOM Feasibility Check
DISCOM receives the application through the portal, assesses transformer capacity, and issues technical feasibility sanction. Typically 15–30 days in states with active portals.
Installation by Empanelled Vendor
Vendor installs the ALMM-listed, BIS-certified system. All installation documentation is prepared: SLD, test certificates, earthing records.
DISCOM Inspection and Net Meter Installation
DISCOM conducts commissioning inspection. On passing, DISCOM installs the bidirectional net energy meter at the consumer’s cost. This activates net metering billing.
Subsidy Disbursement
DISCOM uploads the commissioning report to the national portal. MNRE releases the central financial assistance directly to the customer’s registered bank account within 30 days.
Common Compliance Pitfalls
Non-ALMM components: Purchasing modules or inverters before checking the current ALMM list is the most common mistake. The lists update quarterly, and a model removed mid-project creates a subsidy eligibility problem.
Missing load sanction letter: DISCOMs require the sanctioned load document to verify system size eligibility. Older electricity connections may not have this document readily available — customers should request it from the DISCOM before starting the application.
Incorrect SLD format: Some DISCOMs specify particular formats for the single-line diagram. Using solar proposals software that generates DISCOM-compatible documentation avoids rejections on technical grounds.
Subsidy amount misstated to customer: Quoting the maximum Rs. 78,000 CFA without factoring in state-specific conditions or customer-specific ineligibility (e.g., apartment connections without ownership proof) leads to disputes.
Frequently Asked Questions
What is the MNRE Rooftop Solar Phase II programme?
MNRE’s Phase II programme is the central government’s framework for nationwide rooftop solar expansion, combining net metering with capital subsidies. The residential track operates through PM Surya Ghar; commercial and industrial installations benefit from net metering and tax incentives.
What sizes are eligible for MNRE subsidy?
Residential systems from 1 kW to 3 kW are eligible for PM Surya Ghar central financial assistance up to Rs. 78,000. Commercial systems receive no central subsidy but can benefit from state-level schemes and accelerated depreciation.
What is an empanelled vendor?
An empanelled vendor is a registered installer on the PM Surya Ghar national portal, validated by the state DISCOM. Only empanelled vendors can handle subsidy-eligible installations.
What is the difference between RESCO and CAPEX?
CAPEX: consumer owns the system, pays upfront (net of subsidy), eligible for PM Surya Ghar CFA. RESCO/PPA: third party owns the system, no upfront cost for consumer, but PM Surya Ghar subsidy does not apply.
Which technical standards apply?
IS 14086 for modules, IS 16221 for inverters (both BIS certification), plus ALMM listing from MNRE. CEA Technical Standards for Connectivity Regulations 2013 apply for grid connection.
