India’s PM Surya Ghar Muft Bijli Yojana is the single largest residential solar subsidy programme ever launched in the country. Announced by the Prime Minister in February 2024, the scheme targets 1 crore (10 million) households, offers central subsidies of up to Rs. 78,000 per installation, and promises 300 units of free electricity per month.
For solar installers in India, PM Surya Ghar shapes every residential rooftop conversation. Understanding the scheme mechanics — subsidy structure, eligibility, the national portal workflow, and common pitfalls — is now a core business skill.
Subsidy Structure
The central financial assistance (CFA) is structured by system size:
| System Size | CFA Rate | CFA Amount |
|---|---|---|
| First 2 kW | Rs. 30,000 per kW | Rs. 60,000 |
| Third kW (2–3 kW) | Rs. 18,000 per kW | Rs. 18,000 |
| Above 3 kW | Nil | — |
| Maximum CFA | — | Rs. 78,000 |
A consumer installing a 3 kW system at Rs. 70,000 per kW gross cost:
- Gross system cost: Rs. 2,10,000
- Central CFA: Rs. 78,000
- Net cost to consumer: Rs. 1,32,000 (before state subsidy)
With a state top-up (e.g., Karnataka’s Rs. 10,000–Rs. 20,000 subsidy), the net cost drops further.
Subsidy Is Paid to the Consumer, Not the Installer
The CFA is disbursed directly to the customer’s registered bank account within 30 days of the DISCOM uploading the commissioning report. Installers cannot claim the subsidy on behalf of customers. Do not net the subsidy against your invoice — bill at full cost and explain how the customer will receive the CFA separately.
Eligibility Criteria
Who qualifies:
- Residential households with a valid electricity service connection from a state DISCOM
- Applicant must own the property where the system will be installed (or have documented consent from the owner)
- System must be installed by a vendor registered on pmsuryaghar.gov.in
- System components must be on the MNRE ALMM list
Who does not qualify:
- Commercial, industrial, or government consumers (no central CFA — may get state subsidies separately)
- Households that have previously received a central government solar subsidy for the same connection
- RESCO/PPA installations where a third party owns the system
- Renters without documented ownership or consent
Apartment buildings: Housing societies can apply for PM Surya Ghar on common area connections. Individual flat owners in multi-storey buildings where common metering exists can apply if the DISCOM and housing society structure permits.
The National Portal: Step-by-Step Application
Consumer Registration
Customer visits pmsuryaghar.gov.in and registers with their state, DISCOM name, electricity consumer account number, and Aadhaar-linked mobile number. OTP verification completes registration. An account is created linked to the electricity connection.
Application Submission
Customer logs in and completes the application form: rooftop ownership details, desired system size (1 kW to 10 kW, though subsidy caps at 3 kW), and bank account details for subsidy disbursement. They select an empanelled vendor from the portal’s state-specific list.
Vendor Site Survey
The selected empanelled vendor conducts a site survey: roof area, shading assessment, load profile, existing electrical installation. The vendor confirms the technical proposal — system size, panel layout, inverter specification — and uploads this to the portal.
DISCOM Feasibility Approval
The DISCOM reviews the application through the portal. It checks transformer loading capacity, verifies the connection details, and issues a technical feasibility sanction. Timeline: 15–30 days in active-portal states, up to 45 days in states with manual processes.
System Installation
After feasibility sanction, the vendor installs the solar PV system using ALMM-listed modules and inverters. All electrical work must comply with CEA Technical Standards and state DISCOM requirements. Installation documentation is prepared.
DISCOM Inspection and Net Meter Installation
The vendor notifies the DISCOM of installation completion. The DISCOM sends a technical team for commissioning inspection. After passing inspection, the DISCOM installs a bidirectional (two-register) net energy meter at the consumer’s cost (typically Rs. 2,000–Rs. 8,000 depending on DISCOM).
Commissioning Report and Subsidy Disbursement
The DISCOM uploads the commissioning report to the national portal. MNRE reviews and releases the central financial assistance directly to the consumer’s bank account within 30 days of report acceptance. The consumer also receives net metering from this date.
The 300 Free Units Calculation
The “300 units of free electricity per month” claim is based on:
- A 3 kW rooftop solar system generates approximately 360–400 units per month at average Indian irradiance (4.5–5 peak sun hours daily)
- A household consuming around 300 units per month will see its entire monthly consumption offset by solar generation
- Net metering credits the surplus export at the APPC rate; self-consumed solar displaces grid import at the full retail rate
Worked Example (3 kW system, monthly basis):
| Parameter | Value |
|---|---|
| Solar generation | 375 units/month |
| Household consumption | 300 units/month |
| Self-consumed | 200 units (estimated) |
| Exported to grid | 175 units |
| Grid import | 100 units |
| Bill before solar | Rs. 1,800 (at Rs. 6/unit average) |
| Savings on self-consumed | Rs. 1,200 |
| Export credit at APPC (Rs. 3.80/unit) | Rs. 665 |
| Net bill | Rs. 1,800 − Rs. 1,200 − Rs. 665 = −Rs. 65 (credit) |
In this scenario, the customer’s bill is effectively zero — and they carry a small credit forward. The “300 free units” marketing claim is roughly accurate for a household consuming 300 units per month in a state with a reasonably favourable APPC rate.
Pro Tip: Use Location-Specific Generation Estimates
Generation from a 3 kW system varies from roughly 300 units/month in less sunny northeastern states to 450 units/month in Rajasthan or Gujarat. Using location-specific irradiance data from solar design software gives customers accurate savings projections rather than national averages.
Concessional Loan Under PM Surya Ghar
Consumers who qualify for PM Surya Ghar can access a concessional loan of up to Rs. 2 lakh from participating nationalised banks. The scheme provides interest subvention to make the effective rate lower than standard personal loans.
Participating banks include: State Bank of India, Bank of Baroda, Punjab National Bank, Union Bank of India, and other nationalised banks.
Loan details (indicative):
| Parameter | Value |
|---|---|
| Maximum loan | Rs. 2,00,000 |
| Indicative interest rate | 7% per annum (with subvention) |
| Tenure | 5 years |
| Approximate monthly EMI | Rs. 3,960 |
| Total interest paid | ~Rs. 37,600 |
For a consumer who pays Rs. 1,500–Rs. 2,000 per month in electricity bills, the EMI is higher than the bill. But the solar system eliminates most of the bill, so the net monthly outgo (EMI minus bill savings) is typically Rs. 1,500–Rs. 2,000 — roughly breakeven from day one, with the system free and clear after 5 years.
State Top-Up Subsidies
Several states supplement the central CFA with additional subsidies:
| State | State Scheme | Additional Subsidy |
|---|---|---|
| Gujarat | Surya Gujarat | Rs. 10,000–Rs. 30,000 (varies) |
| Rajasthan | RRECL scheme | BPL/low-income targeted |
| Karnataka | State contribution | Rs. 10,000–Rs. 20,000 |
| Maharashtra | MEDA schemes | Varies by consumer category |
| UP | Mukhyamantri Solar Rooftop Yojana | As per current scheme notifications |
State Subsidies Change Frequently
State top-up subsidies are revised annually and sometimes mid-year. Always check the current state government notification or DISCOM website before quoting total subsidy amounts to customers. Quoting outdated subsidy figures leads to customer disappointment and disputes.
What Happens If You Use a Non-Empanelled Vendor
Using a non-empanelled vendor for a PM Surya Ghar project has serious consequences:
- The installation is not registered on the national portal
- The DISCOM will not accept the commissioning report for subsidy release
- The DISCOM may refuse to install the net meter under the PM Surya Ghar workflow
- The consumer loses all central CFA
- The consumer may still get a non-subsidised grid connection through the standard DISCOM process, but forfeits the subsidy
For installers: not being empanelled means being excluded from the residential market’s main driver. Empanelment should be completed before actively marketing to residential customers.
RESCO Exclusion from Subsidy
The PM Surya Ghar subsidy applies only to CAPEX (consumer-owned) installations. RESCO and PPA models, where a third party owns and finances the system, do not qualify.
| Model | PM Surya Ghar Eligible | Net Metering | Long-Term Savings |
|---|---|---|---|
| CAPEX (own the system) | Yes | Consumer retains | Higher |
| RESCO / PPA | No | Depends on PPA terms | Lower (paying PPA rate) |
For residential consumers with access to the concessional PM Surya Ghar loan, the CAPEX model nearly always delivers better economics.
Help Customers Understand Their PM Surya Ghar Savings
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25-Year Savings Projection: Worked Example
For a 3 kW system in a state with Rs. 6/unit average retail rate and Rs. 3.80/unit APPC:
| Year | Annual Bill Savings | Cumulative Savings |
|---|---|---|
| 1 | Rs. 22,800 | Rs. 22,800 |
| 5 | Rs. 25,200 (with tariff increase) | Rs. 1,20,000 |
| 10 | Rs. 28,800 | Rs. 2,63,000 |
| 25 | Rs. 42,000 | Rs. 7,60,000 |
Assumes 4% annual electricity tariff escalation, 0.5% annual panel degradation, 5 kWh/day average generation.
System cost after subsidy: Rs. 1,32,000. Payback period: approximately 5–6 years. 25-year net savings: approximately Rs. 6,28,000.
Common Application Problems and Solutions
Problem: Consumer receives no SMS or email after registering on the portal. Solution: Verify mobile number is linked to Aadhaar. OTP may have gone to an older linked number.
Problem: DISCOM rejects application citing transformer overload. Solution: Request the specific transformer ID. Ask if a smaller system size (2 kW rather than 3 kW) would be approved. If the feeder is genuinely saturated, escalate to the DISCOM’s renewable energy cell — they sometimes have a separate queue for PM Surya Ghar applications.
Problem: Subsidy not received 30 days after commissioning report upload. Solution: Check the portal for the application status. If the commissioning report is “accepted” on the portal, contact the PM Surya Ghar helpline. If it is in “pending” status, follow up with the DISCOM to resolve any documentation issues on their end.
Frequently Asked Questions
What is the maximum subsidy under PM Surya Ghar?
Rs. 78,000 for a 3 kW system — Rs. 60,000 for the first 2 kW plus Rs. 18,000 for the third kW.
Who is eligible?
Residential households with valid DISCOM connections who own the rooftop. Installation must be by an empanelled vendor using ALMM-listed components.
How do you apply?
Register on pmsuryaghar.gov.in with electricity consumer number and Aadhaar. Select a system size and empanelled vendor. Track application through the portal.
What is the concessional loan?
Up to Rs. 2 lakh from nationalised banks at subsidised interest rates linked to the PM Surya Ghar scheme. EMI approximately Rs. 3,960 per month for 5 years.
How does PM Surya Ghar deliver 300 free units?
A 3 kW system generates roughly 360–400 units per month at Indian irradiance levels. For a household consuming 300 units, net metering credits fully offset the monthly bill.
