Key Takeaways
- The PM Surya Ghar subsidy pays ₹30,000 per kW up to 2 kW and ₹18,000 for the third kW, capped at ₹78,000 for a home.
- It applies only to residential rooftop systems, not to ground-mount arrays, commercial roofs, or shared society meters (which follow a separate slab).
- Money reaches you by Direct Benefit Transfer, usually within 30 days of net-meter installation and portal commissioning, not before.
- You must register on pmsuryaghar.gov.in, wait for DISCOM feasibility approval, and use a vendor listed on the portal, or the subsidy is void.
- A collateral-free loan near 7 percent is available for systems up to 3 kW, which keeps the EMI below most monthly bill savings.
When a neighbour asked me last month whether the PM Surya Ghar subsidy was "real money or just a government headline", I pulled up my own sanction letter to show him. It is real, and for my 3 kW rooftop system it took ₹78,000 straight off what I paid. The catch is that the money only reaches you if you follow the portal steps in the right order. This walkthrough covers who qualifies, exactly how much you get, and the sequence that gets the subsidy credited to your bank account without you having to chase anyone.
What the subsidy actually covers
PM Surya Ghar: Muft Bijli Yojana launched in February 2024 with a target of one crore homes and an outlay of roughly ₹75,021 crore. The headline promise is up to 300 free units a month for a household that sizes its system correctly. The subsidy itself is Central Financial Assistance paid directly to you, not a discount the installer applies on paper.
The amount is slab-based, and it stops climbing after 3 kW. Here is how it works out for the common residential sizes.
| System size | Central subsidy | How it is calculated |
|---|---|---|
| 1 kW | ₹30,000 | ₹30,000 for the first kW |
| 2 kW | ₹60,000 | ₹30,000 x 2 kW |
| 3 kW | ₹78,000 | ₹60,000 + ₹18,000 for the third kW |
| 4 kW and above | ₹78,000 | Capped, no extra subsidy beyond 3 kW |
So a 5 kW home system still receives the same ₹78,000 as a 3 kW one. The extra 2 kW is worth installing for the generation, but plan your budget knowing the government share does not grow past that ceiling. A few states add their own top-up on the central amount, so check your state portal before you assume the central figure is the whole story.
Who qualifies
The scheme is deliberately narrow. You qualify if you are an Indian citizen who owns a house with a roof structurally sound enough for panels, hold a valid residential electricity connection, and have not already claimed a rooftop solar subsidy for that connection.
- The meter must be a domestic connection, not commercial or agricultural.
- The roof has to be yours to use. Tenants need the owner's consent and the owner's electricity account.
- Only rooftop systems count. A backyard ground-mount or carport array is a fine engineering choice, but it falls outside this particular subsidy.
- Housing societies and apartment blocks have a separate route for common-area load, covered in our guide to solar for apartments and housing societies.
How to apply, step by step
The whole process runs through the national portal. Do not pay a vendor to "handle the subsidy" outside it. The order below is the one that avoids the two most common stalls: applying before feasibility approval, and installing before the DISCOM signs off.
- Register on pmsuryaghar.gov.in by selecting your state and electricity distribution company (DISCOM).
- Enter your consumer number from a recent bill, then log in with your registered mobile number.
- Fill the rooftop solar application form with your proposed capacity and submit it.
- Wait for feasibility approval from the DISCOM. This confirms your connection can take the system. Do not install before this arrives.
- Once approved, get the plant installed by a vendor registered on the portal for your DISCOM area.
- Submit the completed plant details on the portal and apply for a net meter.
- After DISCOM inspection and net-meter installation, a commissioning certificate is generated from the portal.
- Submit your bank account details and a cancelled cheque. The subsidy is transferred by DBT, usually within 30 days.
Warning
Never let an installer connect the system to the grid or energise the DC side before the DISCOM inspection and net meter are in place. Back-feeding an un-approved system is unsafe for line workers and can void both your subsidy and your warranty. All rooftop DC and mains work should be done by the registered vendor's certified electrician, not a general handyman.
What system size makes sense
Because the subsidy caps at 3 kW, that size is the sweet spot for most households drawing 250 to 350 units a month. In my case, a 3 kW array in Pune generates around 12 to 13 units on a clear day, which covered our fans, fridge, lights, and a moderate summer AC load with credits left over in the monsoon shoulder months.
If your monthly consumption is higher, size up for the generation and simply accept that the government share stays at ₹78,000. Work backwards from your last twelve bills rather than a salesperson's round number. Our breakdown of rooftop solar cost and ROI in India walks through that calculation with current per-kW prices, and the broader method sits inside our pillar on how to design a solar system from load up.
Tip
The national portal shows model quotations and MNRE benchmark costs for your area. Pull those up before you take vendor quotes. If a quote sits far above the benchmark for the same panel and inverter tier, ask why in writing. It is the fastest way to spot padding.
The subsidised loan and your EMI
For systems up to 3 kW, banks offer a collateral-free loan at a concessional rate near 7 percent under the scheme. This matters because it changes the question from "can I afford ₹1.8 lakh today" to "can I cover an EMI that is usually smaller than my old bill".
Run a simple check. Take your average monthly bill, subtract the expected EMI, and see whether you are still ahead each month. When I mapped this out, the EMI on the financed portion sat below what I had been paying the DISCOM, so the system was cash-flow positive from month one, before the subsidy even landed. Once the ₹78,000 hit my account, I used it to part-prepay the loan and shortened the tenure.
Timeline: when the money actually lands
People underestimate the gap between "system installed" and "subsidy credited". The panels can be up in a day, but the DBT depends on steps you do not control: feasibility approval, DISCOM inspection scheduling, and net-meter stock at the local office.
A realistic timeline runs four to eight weeks from application to a working, metered system, then up to 30 days for the transfer after commissioning. Mine took about six weeks end to end, with the net-meter inspection being the slowest link. If your commissioning certificate is generated and 30 days pass with no credit, raise a ticket on the portal with the certificate number. That single reference usually moves things.
Mistakes I see people make
The recurring one is trusting a vendor who promises to "adjust" the subsidy into the price so you pay less upfront and sign the DBT over to them. The subsidy is meant to reach your bank account. Handing that right away removes your leverage if the install is sloppy.
The second is applying with a capacity the roof cannot actually hold once you account for shadow-free area and walkways. A 3 kW array needs roughly 200 to 250 square feet of clear south-facing roof. Measure before you apply, not after feasibility approval. If shading or degradation later drags output down, catching it early through good commissioning habits saves you a bad first year on a system you are still paying for.
Frequently Asked Questions
How much subsidy do I get for a 5 kW system?
The same ₹78,000 as a 3 kW system. The Central Financial Assistance is capped at 3 kW, so anything larger receives the maximum household amount and no more. You still install the extra capacity for the generation, but budget knowing the government share does not increase past that ceiling.
Can I apply if I rent my home?
Not directly. The subsidy is tied to the residential electricity connection and the roof owner. A tenant needs the owner to apply using their own consumer number and consent. The DBT and net-meter benefit follow that connection, so the account holder must be the applicant.
Do I have to use a specific installer?
You must use a vendor registered on the national portal for your DISCOM area. Installing through an unregistered contractor voids the subsidy claim even if the hardware is identical. The portal lists approved vendors, so shortlist from there and compare quotes against the MNRE benchmark.
What if my subsidy does not arrive in 30 days?
First confirm your commissioning certificate is generated on the portal and your bank details and cancelled cheque are submitted correctly. If both are in order and 30 days have passed, raise a grievance ticket on the portal quoting the certificate number. That reference is what the DISCOM and bank use to trace the transfer.
Does the subsidy cover batteries?
No. PM Surya Ghar supports grid-connected rooftop solar with net metering, not battery storage. If you want backup, you add batteries at your own cost on top of the subsidised panels and inverter. Many homes skip storage at first because net metering already banks their surplus with the grid.
Getting started without the headaches
The subsidy is generous and the process is workable once you respect the sequence: register, get feasibility approval, install through a registered vendor, then meter and commission before expecting the money. Treat the portal as your record of truth and keep every certificate number.
If you are still deciding on capacity and layout, start with the fundamentals in our guide on how to design a solar system so the size you apply for actually matches your load. Get that right first, and the subsidy simply lowers the bill on a system you would have wanted anyway. For the official rules and updates, the Ministry of New and Renewable Energy is the source to bookmark.
