India’s rooftop solar sector crossed 12 GW of cumulative capacity in 2025, and the central government’s PM Surya Ghar Muft Bijli Yojana is the single largest driver of residential rooftop growth. Launched in February 2024 by the Prime Minister, the scheme targets 1 crore (10 million) households with rooftop solar installations — making it one of the largest residential solar subsidy programs in the world.
For solar installers working in the Indian market, understanding PM Surya Ghar is not optional. Every residential rooftop enquiry will touch on it. This guide covers the subsidy structure, eligibility, the national portal application workflow, DISCOM approval steps, and what changes by state.
Last Reviewed: April 2026
PM Surya Ghar guidelines are revised periodically by MNRE. Always cross-check subsidy amounts and portal procedures at pmsuryaghar.gov.in and the latest MNRE circular before quoting a customer.
What Is PM Surya Ghar Muft Bijli Yojana?
PM Surya Ghar Muft Bijli Yojana (“Free Electricity from the Sun Scheme”) is a flagship central government program under the Ministry of New and Renewable Energy (MNRE). The scheme’s stated objective is to install rooftop solar on 1 crore households across India, generating 30 GW of additional rooftop solar capacity.
Core benefits for households:
- Central Financial Assistance (CFA / subsidy) for system installation
- Net metering to offset electricity bills — up to 300 units/month effectively free
- Direct benefit transfer: subsidy deposited directly into the beneficiary’s bank account
- Low-interest loans available through scheduled commercial banks linked to the portal
Scale of the scheme:
- Budget allocation: Rs. 75,021 crore (approximately $9 billion)
- Target: 1 crore households by 2027
- Systems installed as of March 2026: approximately 15 lakh (1.5 million)
Subsidy Slabs: How Much CFA Do You Get?
The central financial assistance (CFA) is the core financial benefit of the scheme. It is based on the system size installed:
| System Size | CFA per kW | Total CFA |
|---|---|---|
| Up to 2 kW | Rs. 30,000/kW | Up to Rs. 60,000 |
| 2 kW to 3 kW | Rs. 18,000/kW (for portion above 2 kW) | Up to Rs. 78,000 |
| Above 3 kW | No additional CFA | Maximum Rs. 78,000 |
Examples:
| System Size | CFA Calculation | Total CFA |
|---|---|---|
| 1 kW | 1 × Rs. 30,000 | Rs. 30,000 |
| 2 kW | 2 × Rs. 30,000 | Rs. 60,000 |
| 3 kW | (2 × Rs. 30,000) + (1 × Rs. 18,000) | Rs. 78,000 |
| 5 kW | Same as 3 kW — CFA is capped | Rs. 78,000 |
| 10 kW | Same as 3 kW — CFA is capped | Rs. 78,000 |
For Most Households, 3 kW Is the Economically Optimal Size
Since no additional CFA is available above 3 kW, households who want to install larger systems get the same subsidy amount regardless of how large the system is. From a financial planning perspective, the subsidy covers approximately 30–40% of a typical 3 kW residential system cost — making 3 kW the sweet spot for most residential customers.
Additional State-Level Subsidies
Several states have supplemented the central CFA with their own state subsidy programs. These are stacked on top of the central benefit:
| State | Additional State Subsidy | Notes |
|---|---|---|
| Gujarat | Varies by DISCOM | Check with GETCO/UGVCL |
| Maharashtra | Additional support for rural consumers | Via MSEDCL scheme |
| Uttar Pradesh | State-level add-on available | Apply through UP NEDA |
| Karnataka | Additional rooftop solar scheme | Via KREDL |
| Rajasthan | State scheme under Rajasthan Solar Policy | Via RREC |
State subsidy programs change frequently. Always check with the relevant state nodal agency for current amounts.
Eligibility Requirements
Who Can Apply?
- Residential households with a valid electricity consumer number from a DISCOM
- Property ownership: the applicant must own (or have rights to use) the rooftop where the system will be installed
- Single-phase or three-phase consumers are both eligible
- Apartment buildings: households in multi-storey apartments can apply for individual systems or a common area system through the housing society
Who Is Not Eligible?
- Commercial and industrial consumers (separate schemes apply)
- Households that have already received subsidy under earlier MNRE rooftop schemes (like Phase I/Phase II Rooftop Solar Programme) for the same property
- Households whose DISCOM has declared a moratorium on new net metering connections (some DISCOMs in congested urban grids have done this — verify with the local DISCOM)
System Specifications Required
The installed system must meet MNRE technical specifications:
- Solar modules: Must be from the Approved List of Models and Manufacturers (ALMM) published by MNRE. Only ALMM-listed modules qualify for the subsidy.
- Inverters: Must meet MNRE technical standards (grid-tied, with anti-islanding protection, BIS certification)
- Installed capacity: System must match the capacity applied for in the portal application
- Installer: Must be registered on the PM Surya Ghar national portal as an approved vendor
The Application Process: Step by Step
Register on pmsuryaghar.gov.in
Visit the national portal and click “Apply for Rooftop Solar.” Register with your state, electricity consumer number, and mobile number linked to your Aadhaar. Verify via OTP. Create your account — this takes 5 minutes.
Submit Application for Feasibility
Log in and complete the application form. Select the system capacity you want to install. The DISCOM reviews the application for technical feasibility (transformer capacity, feeder load, and connection availability) and issues a Letter of Intent (LoI) within 15–30 days.
Select a Registered Vendor
Once the LoI is issued, select a vendor from the portal’s approved vendor list for your state. The vendor must be registered on the PM Surya Ghar portal — you cannot use an unregistered installer and still qualify for the CFA. The vendor conducts a site survey and provides a quotation.
Installation by Registered Vendor
The registered vendor installs the system using ALMM-listed modules and MNRE-compliant inverters. The vendor uploads installation documents and commissioning data to the portal. Installation typically takes 1–3 days for a residential system.
Net Meter Installation by DISCOM
After installation, the DISCOM sends a technician to install a bidirectional net meter. This records both import from the grid and export to the grid. Net meter installation timelines vary by state — typically 15–45 days after installation. Some DISCOMs have backlogs.
Commissioning Report and Subsidy Disbursement
The DISCOM raises a commissioning report on the portal. MNRE verifies and releases the CFA directly to the beneficiary’s bank account (linked via Aadhaar) within 30 days of the commissioning report. No further action required from the household after this point.
Vendor Registration Is Mandatory for CFA
This is the most common source of installer loss in the PM Surya Ghar market: a household installs solar with an unregistered vendor, then discovers they are not eligible for the subsidy. Always verify your registration status on the portal before committing to a PM Surya Ghar job.
ALMM: What Is It and Why Does It Matter?
The Approved List of Models and Manufacturers (ALMM) is an MNRE-maintained list of solar modules approved for use in government-supported schemes. Using non-ALMM modules disqualifies the installation from PM Surya Ghar CFA.
Key ALMM rules:
- Only modules manufactured in India are eligible for ALMM listing (as of the current policy)
- Imported modules are not ALMM-listed and cannot be used in PM Surya Ghar projects
- Module manufacturers must apply to MNRE for ALMM listing; listings are updated periodically
- Check the current ALMM list at the MNRE website before specifying modules for any PM Surya Ghar project
Approved domestic manufacturers include Adani Solar, Vikram Solar, Waaree Energies, RenewSys, Premier Solar, and others. The full list is available at the MNRE portal.
ALMM Policy Is Actively Evolving
MNRE has periodically updated the ALMM requirements — including changes to cell manufacturing requirements and domestic value addition thresholds. The rules as of 2026 may be different from what applied in 2024. Verify current ALMM requirements before sourcing modules for PM Surya Ghar installations.
Net Metering Under PM Surya Ghar
Net metering is a prerequisite for PM Surya Ghar — households must be connected to the grid and export surplus generation for the scheme to deliver its “free electricity” promise.
How net metering works:
- The bidirectional meter records both units consumed from the grid and units exported to the grid
- At the end of each billing cycle, the DISCOM calculates net consumption (import minus export)
- If net consumption is positive, the household pays for the difference at the applicable tariff
- If net consumption is negative (more exported than imported), the surplus is carried forward as a credit — most states allow carrying credits forward for up to 12 months
Expected generation for a 3 kW system:
| City | Annual Generation (est.) | Monthly Average |
|---|---|---|
| Rajasthan (Jodhpur) | 5,400–5,700 kWh | 450–475 kWh |
| Gujarat (Ahmedabad) | 4,800–5,100 kWh | 400–425 kWh |
| Maharashtra (Pune) | 4,500–4,800 kWh | 375–400 kWh |
| Karnataka (Bengaluru) | 4,200–4,500 kWh | 350–375 kWh |
| Delhi | 4,000–4,300 kWh | 333–358 kWh |
| West Bengal (Kolkata) | 3,600–3,900 kWh | 300–325 kWh |
A household consuming 200–250 units/month will see near-zero electricity bills with a 3 kW system in most Indian cities, fulfilling the “300 units free” promise of the scheme.
State-Wise Implementation Status
PM Surya Ghar is a central scheme but is implemented through state DISCOMs. Implementation quality and speed vary significantly by state:
| State | Status | Net Metering Active | Typical Processing Time |
|---|---|---|---|
| Gujarat | Active | Yes | 30–45 days |
| Maharashtra | Active | Yes | 45–60 days |
| Rajasthan | Active | Yes | 30–60 days |
| Karnataka | Active | Yes | 45–75 days |
| Uttar Pradesh | Partial | Yes (varies by DISCOM) | 60–90 days |
| Delhi | Partial | Yes (BSES, TPDDL) | 45–90 days |
| Tamil Nadu | Partial | Limited (TANGEDCO caps) | 60–120 days |
| Bihar | Limited | Limited | 90+ days |
| West Bengal | Partial | Yes | 60–90 days |
| Andhra Pradesh | Active | Yes | 45–60 days |
TANGEDCO and Some DISCOMs Have Net Metering Caps
Tamil Nadu’s TANGEDCO and a few other DISCOMs have imposed caps on net metering connections — either by feeder or by total capacity — due to grid management concerns. If you are working in a state where the DISCOM has announced net metering restrictions, verify availability before accepting PM Surya Ghar orders.
Vendor Registration: How to Register on the Portal
If you are a solar installer and want to work on PM Surya Ghar projects, you must register as a vendor on the national portal. Non-registered vendors cannot raise commissioning reports, which means the household cannot receive the CFA.
Registration requirements:
- Valid GST registration
- Experience in solar PV installation (typically 1+ year)
- Technical qualification: company must employ or be run by someone with a relevant electrical qualification (B.E./Diploma in Electrical Engineering or equivalent in most states)
- Business registration documents (Partnership deed, incorporation certificate, etc.)
Registration is done through the PM Surya Ghar portal under the “Vendor Registration” section. State-level nodal agencies (SECI or state energy department) review applications. Processing time is typically 2–4 weeks.
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Financing: Loans for PM Surya Ghar
The national portal includes a loan component for households who want to finance the portion of system cost not covered by the CFA. Scheduled commercial banks and regional rural banks have partnered with the scheme to offer:
- Loan amount: Up to the residual cost after CFA
- Interest rate: Collateral-free loans at concessional rates (check current RBI guidelines)
- Repayment: Typically 5–7 years; repayments are often offset by electricity bill savings
- Application: Initiated through the PM Surya Ghar portal — the bank is selected from the portal’s partner list
Frequently Asked Questions
Can a renter apply for PM Surya Ghar?
The scheme requires the applicant to have rights to install equipment on the rooftop. Renters who have written permission from the property owner may be able to apply, but the subsidy is disbursed to the consumer account holder. In practice, most applicants are homeowners. Check the latest portal guidelines for renter eligibility.
What if my DISCOM denies net metering?
A small number of DISCOMs in high-congestion areas have paused new net metering applications. If your DISCOM denies net metering, the solar system can still be installed but will operate in gross metering mode (all generation credited at the gross feed-in tariff, which is typically lower). The PM Surya Ghar subsidy may still be available in gross metering mode — verify with your state nodal agency.
Can I install a system larger than 3 kW under PM Surya Ghar?
Yes. You can install any size system through a registered PM Surya Ghar vendor, but the CFA is capped at Rs. 78,000 regardless of system size. Capacity above 3 kW is installed at the household’s own cost with no additional central subsidy.
How is the CFA disbursed?
The CFA is transferred directly to the beneficiary’s bank account via PFMS (Public Financial Management System). The account must be linked to the beneficiary’s Aadhaar. The DISCOM triggers the disbursement after raising the commissioning report on the portal.
What happens if the installation quality is poor?
The registered vendor bears responsibility for workmanship. MNRE has set up a grievance redressal mechanism on the portal. Beneficiaries can lodge complaints if the vendor’s work is defective. Registered vendors who accumulate complaints risk de-registration from the portal.
