☀️ Solar Energy

PM Surya Ghar Muft Bijli Yojana: Solar Subsidies in IndiaComplete 2026 Guide with ROI Calculator

7 min read

India's most ambitious rooftop solar program — PM Surya Ghar: Muft Bijli Yojana — is transforming how 1 crore Indian households generate and consume electricity. With a government budget of ₹75,021 crore, this scheme offers direct subsidies of up to ₹78,000 for installing a 3 kW+ rooftop solar system.

Once installed, a qualifying household receives up to 300 units of free electricity per month. After the system pays for itself in just 2–3 years, every unit generated is essentially free for the remaining 20+ years of the panel's lifespan.

₹78,000

Maximum central subsidy for 3 kW+ system

1 Crore

Target households to benefit from the scheme

25 Years

Typical solar panel operational lifespan

Subsidy Slabs: How Much Will You Get?

The Ministry of New and Renewable Energy (MNRE) provides Central Financial Assistance (CFA) in a tiered structure:

1 kW System

₹30,000

Central subsidy (₹30,000/kW)

Installation: ₹55,000–₹65,000

Net Cost: ₹25,000–₹35,000

Generates ~120 units/month

2 kW System

₹60,000

Central subsidy (₹30,000/kW)

Installation: ₹1,10,000–₹1,25,000

Net Cost: ₹50,000–₹65,000

Generates ~240 units/month

Most Popular

3 kW System (Recommended)

₹78,000

Maximum central subsidy · Capped at 3 kW equivalent

Installation

₹1.6–₹1.8 lakh

Net Cost

₹82k–₹1.02 lakh

Monthly Units

~360 units

Payback Period

~2.8 years

Financial Return: What's My ROI?

Let's model a 3 kW system in Maharashtra or Karnataka with an average domestic tariff of ₹8.00/unit:

System Size3 kW
Annual units generated~4,320 kWh
Value of generated power @ ₹8/unit₹34,560/year
Annual maintenance (cleaning, AMC)~₹2,000/year
Net Annual Savings~₹32,560/year
Net Customer Cost (after ₹78k subsidy)~₹90,000
⏱️ Payback Period~2.76 years

🏆 The Long-Term Picture

After payback in under 3 years, the solar system generates free electricity for 22+ more years — yielding over ₹7 Lakh in cumulative lifetime savings at current tariff rates (and significantly more as tariffs rise over the decades).

Step-by-Step Application Process

1
📝

Register on the Portal

Visit pmsuryaghar.gov.in or download the Sandes app. Register using your state, DISCOM name, consumer number, mobile, and email.

2
🔍

Receive Feasibility Approval

DISCOM officials inspect and approve if the local transformer can support net-metering and your sanctioned load allows the new system.

3
🏗️

Install via Approved Vendor

Select only DISCOM-registered vendors using ALMM-certified (Made in India) solar panels. Only these qualify for the central subsidy.

4

Net Meter Installation

Submit installation details. DISCOM installs a bidirectional net meter that tracks both energy imported from and exported to the grid.

5
💰

Subsidy Credited Directly

Upload your bank details and a photo of the commissioned net meter. The Central Financial Assistance (subsidy) is credited within 30 days.

☀️ Free Tool

Calculate Your Solar Panel ROI

Enter your state, monthly electricity consumption, and roof area to see your recommended solar system size, exact subsidy amount, and your personalised payback period.

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