PM Surya Ghar Muft Bijli Yojana: Complete Guide (Eligibility, Subsidy, How to Apply)
The Government of India is promoting the use of solar energy for domestic purposes. Electricity bills are a major monthly expense in most Indian households. To reduce this burden and boost clean energy, the Government of India launched PM Surya Ghar: Muft Bijli Yojana. This is a flagship rooftop solar scheme aimed at helping Indian households with the installation of grid-connected rooftop solar (RTS) and receive up to 300 units of electricity “free” per month through solar generation and bill adjustment.
This blog gives detailed information about all aspects of this scheme. It covers various topics related to the schemes, including benefits, eligibility, subsidy amounts, step-by-step application processes, required documents, and key highlights.
What is PM Surya Ghar Muft Bijli Yojana?
PM Surya Ghar: Muft Bijli Yojana is a central government scheme to support rooftop solar installation for residential households. The Indian Government has set a target of 1 crore homes with a total outlay of ₹75,021 crore.
Key objective
- The main purpose of this scheme is to encourage Indian residents to install rooftop solar so that their monthly electricity bills are reduced to almost zero. This scheme helps to promote clean energy. It makes the household self-independent in power generation. Reduces the burden on the government to provide electricity to households.
How the scheme works
- You install a grid-connected rooftop solar system on your roof from certified vendors. Most prominent among them are Tata Power Solar, Loom Solar, Waaree Energies, Adani Solar, Vikram Solar, Fourth Partner Energy, and CleanMax Solar
- A net meter is installed by the DISCOM, i.e. Electricity distribution company.
- In the daytime, your home uses solar power first, extra power is exported to the grid.
- Your bill is adjusted based on net consumption/export, reducing monthly charges.
- You receive Central Financial Assistance (CFA)/subsidy after successful installation and verification through the national portal.
Subsidy under PM Surya Ghar (CFA) – Latest Amount
The scheme provides Central Financial Assistance (CFA)for residential rooftop solar with these effective amounts:
Central subsidy (for most states)
- ₹30,000 per kW for the first 2 kW
- ₹18,000 per kW for additional capacity up to 3 kW
- No additional subsidy beyond 3 kW
- Maximum subsidy cap: ₹78,000 (for 3 kW or higher systems)
Quick examples (as per guidelines)
- 1 kW system → ₹30,000 subsidy
- 2 kW system → ₹60,000 subsidy
- 3 kW (or above) system → ₹78,000 subsidy (cap)
Special Category States (higher CFA)
Guidelines also specify higher CFA for “Special Category States” (as per scheme rules).
Note: Some State/UT governments may add extra state subsidy on top of the central subsidy of Rs. 78,000=00, integrated via the national portal (varies by state).
- Maharashtra: The Maharashtra state government offers an additional subsidy of up to ₹60,000 for a 3 kW system, depending on the system size. Combined with the central subsidy, this can result in a total subsidy of over ₹1.3 lakh (₹130,000) for a homeowner in Maharashtra.
- Uttar Pradesh (UP): UP provides an extra state bonus of around ₹30,000 to ₹45,000 for systems up to 3 kW. This brings the potential total subsidy for a 3 kW system to approximately ₹1,08,000 to ₹1,23,000 in UP.
- Ladakh: The Union Territory administration offers a top-up subsidy of ₹20,000 per kWp for the first 2 kWp, and ₹10,000 per kWp for additional capacity of 1 kW or part thereof, potentially exceeding the base central subsidy for certain configurations. So in Ladhakh, households can enjoy subsidy upto Rs. 1,28,000=00
- Delhi: Delhi also offers a bonus of ₹10,000 per kW for up to 3 kW, resulting in a total state top-up of ₹30,000 and a combined total of ₹1,08,000 for a 3 kW system in Delhi UT.
Eligibility Criteria (Who can apply?)
- You are a residential electricity consumer
- You have a valid consumer number/account with your DISCOM
- You have a suitable roof/space for installation
- You apply through the official PM Surya Ghar national portal
Important eligibility/technical conditions
- Subsidy is for residential consumers (not commercial/industrial).
- The installation must follow the scheme’s technical requirements and the portal process.
- Domestic Content Requirement (DCR) applies for CFA eligibility (modules must meet the DCR condition).
- CFA is typically available once for an installation is complete (as per scheme guidelines).
Documents & details you should keep ready
While exact requirements can differ slightly by DISCOM/state, commonly needed:
- Electricity bill / Consumer number
- Mobile number (linked for OTP)
- Address proof / basic consumer details
- Bank account details (for subsidy credit)
- Roof ownership/permission (in some cases—especially for apartments/RWAs)
Step-by-step: How to Apply Online (Official Process)
You must apply through the PM Surya Ghar portal:
Step 1: Register on the portal
- Visit the national portal: pmsuryaghar.gov.in
- Select State and DISCOM
- Enter Consumer Number, mobile number, and verify OTP
Step 2: Submit the rooftop solar application
- Fill basic details and submit the application
- The portal generates an application reference and guides you on system sizing and benefits
Step 3: Feasibility approval by DISCOM
- DISCOM checks technical feasibility and gives approval (as per consumer rules/process)
Step 4: Select a registered vendor
- Choose a vendor registered on the portal
- Compare vendors/ratings and finalize system design and cost
- Most prominent vendors are Tata Power Solar, Loom Solar, Waaree Energies, Adani Solar, Vikram Solar, Fourth Partner Energy, and CleanMax Solar
Step 5: Installation of rooftop solar
- Vendor installs the system as per the approved configuration
Step 6: Apply for net meter/commissioning
- After installation, submit the required details on the portal for net meter installation
- DISCOM inspection/testing is done, and the system is commissioned (process varies by DISCOM but is part of the portal flow).
Step 7: Subsidy (CFA) disbursement
- After successful commissioning/verification, CFA is processed and credited
Loan facility (optional, for those who need financing)
The scheme also mentions access to collateral-free, low-interest loans for installing residential RTS systems up to 3 kW (availability depends on participating banks/terms). Many nationalised banks, including SBI is providing loans at a low rate to the residents.
Advantages of PM Surya Ghar Yojana
1) Big reduction in the monthly electricity bill
A well-sized rooftop system can offset most household consumption. Many users report very low/zero energy charges in some billing periods.
2) Government subsidy reduces the upfront cost
Subsidy of up to ₹78,000 is given by the central government. Many state governments are giving additional subsidies to households. Like in Maharashtra total subsidy is Rs. 1.38 Lakhs. Central govt. Rs. 78,000 + Stategovernment 60,000=00. Payback is online and very fast.
3) Earn from surplus power (net metering)
If your system produces more than you consume at times, the excess can be exported to the grid and adjusted in billing (as per DISCOM net metering rules).
4) Environmental benefits
More rooftop solar means lower emissions and supports national clean energy goals.
5) Economic and local job creation
Large-scale RTS rollout supports manufacturing, installation, and service jobs.
Disadvantages / Limitations (must know before applying)
1) Upfront payment still required
Even with a subsidy, you have to pay the vendor first. Subsidy comes after the completion of all for mality and verifications. So, anyway, the initial budget is required
2) Roof suitability constraints
Shade, weak structure, limited space, or shared roofs (apartments) can reduce feasibility.
3) Process depends on DISCOM timelines
Feasibility approval, net meter installation, and commissioning time can vary by location and DISCOM.
4) Solar generation is weather-dependent
Monsoon/winter/cloudy days reduce output; you still rely on the grid supply when solar is low.
5) Maintenance responsibility
Rooftop solar is low-maintenance but not zero-maintenance—panels need cleaning, and inverters may need attention over time.
6) Subsidy rules/technical compliance
To get CFA, the system must meet guideline conditions (including DCR requirements and portal-based process).
Summary of PM Surya Ghar Muft Bijli Yojana
- Up to 300 units per month benefit through rooftop solar generation and billing adjustment
- Central subsidy up to ₹78,000 for residential rooftop solar. Some state governments provide an additional subsidy.
- Subsidy structure: ₹30,000/kW (first 2 kW) + ₹18,000/kW (up to 3 kW)
- Apply via official portal: pmsuryaghar.gov.in
- Vendor selection through the portal with decision tools/ratings
- Optional collateral-free low-interest loans (as per scheme announcements/terms)
- Targets 1 crore households, supports large-scale rooftop solar adoption
Frequently Asked Questions (FAQs) – PM Surya Ghar Muft Bijli Yojana
1. What is PM Surya Ghar Muft Bijli Yojana?
The PM Surya Ghar Muft Bijli Yojana is a Government of India scheme that aims to provide free electricity (up to 300 units per month) to eligible households by installing rooftop solar panels. The scheme helps reduce electricity bills and promotes clean, renewable energy.
2. Who launched PM Surya Ghar Muft Bijli Yojana?
The scheme was launched by Prime Minister Narendra Modi to encourage solar energy adoption and reduce household electricity expenses across India.
3. How much free electricity is provided under this scheme?
Eligible households can receive up to 300 units of free electricity per month, depending on the capacity of the installed solar rooftop system.
4. Who is eligible for PM Surya Ghar Muft Bijli Yojana?
You are eligible if:
- You are an Indian citizen
- You own a residential house
- The house has a suitable rooftop for solar panels
- You have a valid electricity connection
- You have not already availed a subsidy for rooftop solar
5. Is this scheme applicable to rented houses?
No. The scheme is mainly applicable to homeowners. Tenants cannot apply unless the property owner applies and allows installation.
6. How much subsidy is provided under PM Surya Ghar Yojana?
The government provides a subsidy of:
- Up to 40% for solar systems up to 3 kW
- Up to ₹78,000 maximum subsidy for higher capacity systems. Some state governments provide an additional subsidy. (The exact subsidy depends on system size and government guidelines.)
7. How can I apply for PM Surya Ghar Muft Bijli Yojana?
You can apply online through the official national rooftop solar portal:
- Register using your electricity connection details
- Select a registered vendor
- Get the solar system installed
- Apply for a subsidy after installation
8. Which banks provide loans under PM Surya Ghar Yojana?
Many public sector banks, including State Bank of India (SBI) and other PSU banks, provide low-interest solar loans to support installation costs.
9. Do I need to pay anything upfront?
Yes. You may need to pay the installation cost initially. The subsidy amount is credited directly to your bank account after verification and approval.
10. How long does it take to receive the subsidy?
Typically, the subsidy is credited within 30–60 days after successful installation, inspection, and documentation approval.
11. What capacity solar system is required for free electricity?
- 1 kW system generates ~120 units/month
- 3 kW system can generate up to 300–360 units/month
A 3 kW system is generally sufficient for maximum benefit.
12. Will excess electricity be wasted?
No. Excess electricity is sent to the grid through net metering, and you receive credits that reduce your future electricity bills.
13. Is maintenance of solar panels expensive?
No. Solar panels require minimal maintenance, mainly occasional cleaning. Panels typically last 20–25 years.
14. Can rural households apply for this scheme?
Yes. Both urban and rural households are eligible, provided they meet the basic criteria.
15. Is PM Surya Ghar Muft Bijli Yojana safe and reliable?
Yes. The scheme uses government-approved vendors, standardized solar equipment, and grid-connected systems, making it safe and reliable.
16. What are the main benefits of PM Surya Ghar Muft Bijli Yojana?
- Free electricity up to 300 units
- Huge savings on power bills
- Government subsidy
- Clean & renewable energy
- Increased property value
- Long-term financial benefit
17. Is there any deadline to apply for the scheme?
As of now, the scheme is open, but it is subject to government notifications and budget availability. Early application is recommended.
18. Can I apply if I already have a solar panel installed?
Generally, subsidy benefits are not available for previously installed systems, unless specified by updated government guidelines.
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