How the PM Surya Ghar subsidy actually works
PM Surya Ghar: Muft Bijli Yojana is the central government scheme that pays part of the cost of a rooftop solar plant on a home. It is the single biggest reason residential solar became affordable in India - and also the part of the process where most households get confused, or misled.
What the scheme is
The scheme provides a one-time capital subsidy on grid-connected rooftop solar installed on residential premises. The money is not a discount that your installer applies to the invoice. It is a direct benefit transfer: after your plant is installed and inspected, the government credits the amount into the consumer's own bank account.
That distinction matters. You pay your installer the full contracted price on the agreed schedule; the subsidy arrives separately, later, from the government. Any vendor who tells you they will "adjust the subsidy" so you pay less upfront is describing something the scheme does not do - and you should ask very carefully what they actually mean.
How much you get
| Capacity installed | Central subsidy |
|---|---|
| 1 kW | ₹30,000 |
| 2 kW | ₹60,000 |
| 3 kW and above | ₹78,000 - the ceiling for a household |
| Group housing society / RWA common facilities | ₹18,000 per kW, subject to scheme limits |
The subsidy is capped at 3 kW for an individual household. Installing 5 kW does not get you more than ₹78,000 - which is why sizing matters, and why an installer pushing you toward a larger system should be able to justify it with your consumption figures rather than with the subsidy.
Amounts are as per scheme guidelines. Guidelines are revised from time to time, so confirm the current position on the national portal before you commit - or ask us and we will tell you what applies on the day you apply.
Who is eligible
- You are a residential electricity consumer - the scheme does not cover commercial or industrial connections.
- You have a valid electricity connection in your own name, or can arrange for the application to be in the connection-holder's name.
- You have rights to the roof - your own terrace, or a society NOC or terrace agreement if the roof is shared.
- You have not already claimed subsidy for a rooftop plant at the same connection.
- The installation is done through a vendor registered on the national portal for your DISCOM.
What the money is paid against
Subsidy is only released for a plant that meets the scheme's technical conditions. In practice, the two that catch people out are:
- Domestic content. The scheme requires solar cells and modules made in India. Cheaper imported modules may look identical on a quotation and will quietly make your claim ineligible. If a quotation does not name the module make and model, ask.
- Capacity versus sanctioned load. Your DISCOM will generally not approve a plant far above your sanctioned load. If you want more capacity, load enhancement has to be applied for first - which takes its own time and carries its own charges.
The sequence, in order
Register on the national portal
State, DISCOM, consumer number, mobile and email. Your consumer number is on your electricity bill.
Apply for rooftop solar
Submit the application with the proposed capacity and your details. This goes to your DISCOM.
Wait for feasibility approval
The DISCOM checks whether your connection can take the proposed plant. Do not start installation before this approval. It is the most common and most expensive mistake in the whole process.
Install through a registered vendor
The plant is built to scheme specifications, using eligible modules and an approved inverter.
Apply for the net meter
Submit the installation details and request net metering. The DISCOM schedules an inspection.
Inspection and commissioning certificate
After the DISCOM inspects and installs the net meter, a commissioning certificate is generated on the portal. Nothing moves until this exists.
Submit bank details and claim
Bank account details and a cancelled cheque are submitted on the portal. The subsidy is then processed for release.
When the money actually arrives
Normally within about 30 to 60 days of the commissioning certificate, credited directly to the bank account submitted on the portal. Delays happen, and they are almost always caused by something in the file rather than by the treasury.
The mistakes that delay claims
- Installing before feasibility approval. If the DISCOM has not approved, the plant may not be regularised and the claim can fail outright.
- Name mismatch. The bank account name must match the consumer on the electricity bill. Accounts in a spouse's or son's name are the single most common cause of a stuck claim.
- Ineligible modules. Non-domestic modules make the installation ineligible regardless of how well it was built.
- Unregistered vendor. Work done by a vendor not registered on the portal for your DISCOM cannot be claimed through it.
- Missing society NOC. On shared roofs, the application stalls without written terrace rights.
- Incomplete bank details. A blurred cancelled cheque photo is enough to send the file back.
What the subsidy does not do
It does not cover the whole cost - you still fund the balance. It does not cover meter shifting, load enhancement, or any additional charge the DISCOM levies. It does not apply to commercial or industrial connections. And it is not guaranteed: sanction remains the government's decision, subject to the guidelines in force and the budget available under the scheme.
How we handle this. Portal registration, the DISCOM application, feasibility follow-up, the net-metering application and the full subsidy claim are all included in our scope - we prepare and file them. We will also tell you honestly, before you sign anything, if something about your connection or roof makes the claim difficult. What we will not do is promise a sanction we do not control.