The PM Surya Ghar solar subsidy scheme in India (2026) is the Indian government’s flagship programme to bring free electricity to one crore households through rooftop solar installations. Launched by Prime Minister Narendra Modi in February 2024 with a total outlay of ₹75,021 crore, this scheme provides direct subsidies of up to ₹78,000 for residential solar panels. This comprehensive guide explains eligibility, subsidy slabs, application procedure, and what to expect in 2026.
Table of Contents
- PM Surya Ghar: Scheme Overview
- Subsidy Slabs for 2026
- Eligibility Criteria
- How to Apply: Step-by-Step
- State-Wise Additional Benefits
- Collateral-Free Loan Options
- Expected Savings and ROI
- Frequently Asked Questions
PM Surya Ghar: Scheme Overview
PM Surya Ghar Muft Bijli Yojana (Free Electricity Scheme) was officially notified on 29 February 2024. It aims to install rooftop solar systems on one crore (10 million) homes by 2027. Beneficiaries receive up to 300 units of free electricity per month and a substantial government subsidy on the installation cost.
Key highlights for 2026:
- Total budget: ₹75,021 crore (central government)
- Target: 1 crore households
- Progress as of early 2026: Over 13 lakh installations sanctioned
- Portal: pmsuryaghar.gov.in
- Implementing agency: Ministry of New and Renewable Energy (MNRE) via DISCOMs
Subsidy Slabs for 2026
The central government subsidy is provided as a benchmark cost subsidy, paid directly to the beneficiary’s bank account after installation and inspection:
| System Size | Central Subsidy | Approx. Total Cost | Net Cost After Subsidy |
|---|---|---|---|
| Up to 2 kW | ₹30,000/kW (₹60,000 max) | ₹1,00,000–₹1,20,000 | ₹40,000–₹60,000 |
| 2–3 kW | ₹18,000/kW additional (₹78,000 total) | ₹1,40,000–₹1,80,000 | ₹62,000–₹1,02,000 |
| Above 3 kW | ₹78,000 (capped) | ₹2,00,000+ | ₹1,22,000+ |
Important note: The subsidy is calculated on MNRE benchmark costs, not actual market prices. If the installer charges below benchmark, you still get the full subsidy — resulting in near-zero or even negative net cost for 1 kW systems in some states.
Eligibility Criteria
- Indian citizen owning a residential property with a valid electricity connection
- Electricity meter must be in applicant’s name (or spouse’s name)
- Existing solar system on the same connection: not eligible
- Annual household income: No upper income cap (unlike earlier schemes)
- Property: Own house/flat (rented properties generally not eligible)
- Location: Urban and rural areas both covered under the scheme
- DISCOM approval: Your state electricity distribution company must be registered on the portal
As of 2026, all major DISCOMs across 28 states and 8 UTs are registered. Some areas in J&K and island territories may have limited empanelled vendors.
How to Apply: Step-by-Step
- Register on pmsuryaghar.gov.in: Use your electricity consumer number and registered mobile number. OTP verification required.
- Apply for rooftop solar: Fill in state, DISCOM, consumer account number, and select system size (based on your monthly consumption).
- DISCOM feasibility check: Your DISCOM evaluates net metering feasibility for your connection. Approval takes 7–30 days.
- Choose empanelled vendor: Select from the list of MNRE-empanelled solar installers in your area. Compare quotes.
- Installation: Vendor installs the system. Typical timeline: 1–3 weeks after order.
- Net meter installation: DISCOM installs a bi-directional net meter. Fee: ₹0–₹5,000 depending on state.
- Submit completion report: Upload photos of installation, commissioning certificate, and bank details on the portal.
- Subsidy disbursement: Central subsidy credited to bank account within 30 days of DISCOM inspection. Some states credit within 7 days.
Typical total timeline from application to subsidy receipt: 45–90 days.
State-Wise Additional Benefits (2026)
Several states offer additional subsidies and incentives beyond the central government’s PM Surya Ghar scheme:
- Gujarat: Additional ₹10,000/kW state subsidy; PGVCL covers net metering cost
- Maharashtra: MSEDCL provides free net meter; ₹6,000/kW additional subsidy for 1–3 kW systems in rural areas
- Rajasthan: ₹8,000/kW additional state subsidy; expedited 15-day approval
- Uttar Pradesh: UPNEDA provides ₹15,000 additional incentive for SC/ST households
- Tamil Nadu: TANGEDCO reduces net meter fee to ₹0 for systems below 5 kW
- Kerala: KSEB provides free technical site inspection; additional ₹5,000 subsidy for women-owned homes
- Karnataka: BESCOM empanels over 500 vendors; additional subsidy for cooperative housing societies
Collateral-Free Loan Options
PM Surya Ghar also includes a provision for collateral-free loans at subsidised interest rates:
- SBI Surya Shakti Loan: Up to ₹2 lakh, 7% interest (subvented), 10-year tenure
- PNB Solar Power Loan: Up to ₹5 lakh, 8.5% interest, 7-year tenure
- NABARD loans: For rural households via cooperative banks, as low as 6%
- SIDBI MSME Solar: For small businesses adding solar to commercial connections
EMI example for a 3 kW system costing ₹1,00,000 after subsidy at 7% for 7 years: ≈ ₹1,500/month. Monthly electricity bill saving: ₹1,800–₹2,500. Net monthly saving from day one: ₹300–₹1,000.
Expected Savings and ROI
# 3 kW rooftop solar system analysis (Indian average)
# Location: Pune, Maharashtra (peak sun hours: 5.5/day)
Annual generation = 3 kW × 5.5 h/day × 365 × 0.8 (losses)
= 4,818 kWh/year
Annual savings:
Self-consumed (70%) = 3,373 kWh × ₹7/unit = ₹23,611
Grid export (30%) = 1,445 kWh × ₹3/unit = ₹4,335 (net metering)
Total annual saving = ₹27,946
Cost after subsidy = ₹1,02,000 (3kW system with ₹78,000 subsidy)
Simple payback = ₹1,02,000 / ₹27,946 = 3.65 years
25-year saving = ₹27,946 × 25 × 0.97^25 = ~₹4,80,000
(after panel degradation)Frequently Asked Questions
Can I apply if I am a tenant renting a property?
Generally no, as the electricity connection must be in the applicant’s name. Some states allow with a NOC from the landlord, but the subsidy is typically payable only to the property owner or connection holder.
How long does PM Surya Ghar subsidy take to reach my account?
After successful DISCOM inspection and portal submission, the Central Financial Assistance (CFA) is typically credited within 30 days. In practice, 2026 processing times have improved to 15–20 days in most states due to digitalisation.
What happens if the empanelled vendor overcharges?
The subsidy is paid directly to the beneficiary (not vendor) since 2025, protecting against overcharging. You can file a grievance on the PM Surya Ghar portal. MNRE has strict empanelment rules — overcharging vendors face delisting.
Is there an upper limit on the number of solar panels?
Subsidy is capped at 3 kW (₹78,000). You can install larger systems (5 kW, 10 kW) but only receive subsidy for the first 3 kW. Higher capacity requires DISCOM approval for higher net meter capacity.
What if net metering is not available in my area?
Net metering is mandated under the Electricity (Rights of Consumers) Rules 2020 for all DISCOMs. If your DISCOM refuses, file a complaint with the State Electricity Regulatory Commission (SERC). You can also opt for battery storage (off-grid) without net metering.
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