Pradhan Mantri Surya Ghar Muft Bijli Yojana is the Government of India’s flagship rooftop solar scheme. It helps ordinary households install solar panels on their rooftops and get free electricity every month. The scheme also gives a direct cash subsidy to reduce the installation cost.
Pradhan Mantri Surya Ghar Muft Bijli Yojana (PMSGMBY) is a central government scheme launched to promote rooftop solar power in Indian homes. Under this scheme, the government pays a part of your solar panel installation cost directly into your bank account. In return, your home generates its own electricity from sunlight, which lowers or completely removes your monthly electricity bill.
The scheme was announced by Prime Minister Narendra Modi on 13 February 2024 and approved by the Union Cabinet on 29 February 2024. It is run by the Ministry of New and Renewable Energy (MNRE) and implemented through state electricity distribution companies (DISCOMs).
Why Was This Scheme Started?
The government created this scheme with a few clear goals in mind:
- Reduce the electricity bill burden on middle-class and low-income households
- Increase the use of clean, renewable solar energy across India
- Reduce dependence on coal-based power generation
- Create local jobs in the solar installation and manufacturing sector
- Help India move closer to its clean energy and climate targets
Key Facts About the Scheme
| Detail | Information |
|---|---|
| Scheme Name | Pradhan Mantri Surya Ghar Muft Bijli Yojana |
| Launched By | Prime Minister Narendra Modi |
| Announcement Date | 13 February 2024 |
| Cabinet Approval | 29 February 2024 |
| Ministry In Charge | Ministry of New and Renewable Energy (MNRE) |
| Target | 1 crore (10 million) households |
| Target Completion | By March 2027 |
| Maximum Subsidy | Up to ₹78,000 per household |
| Free Electricity | Up to 300 units per month (for a 3 kW system) |
| Application Mode | Fully online |
| Official Portal | pmsuryaghar.gov.in |
How Much Subsidy Will You Get?
The subsidy amount depends on the size (capacity) of the solar system you install on your rooftop. Larger systems generate more electricity but do not get unlimited subsidy — the government has fixed slabs.
Subsidy Slabs Based on System Size
| System Size | Subsidy Rate | Total Subsidy Amount |
|---|---|---|
| 1 kW | ₹30,000 per kW | ₹30,000 |
| 2 kW | ₹30,000 per kW | ₹60,000 |
| 3 kW or above | ₹18,000 per kW (for the 3rd kW) | ₹78,000 (maximum cap) |
Simple explanation: You get ₹30,000 for each of the first 2 kW of solar capacity. For the 3rd kW, you get an additional ₹18,000. Beyond 3 kW, the subsidy does not increase — ₹78,000 is the maximum amount any household can receive, no matter how large the system is.
Subsidy vs Approximate System Cost (Illustrative)
The table below gives a rough idea of the cost of a system before and after subsidy. Actual prices vary by city, vendor, and equipment brand.
| System Size | Approx. Market Cost | Subsidy | Approx. Net Cost |
|---|---|---|---|
| 1 kW | ₹65,000 | ₹30,000 | ₹35,000 |
| 2 kW | ₹1,30,000 | ₹60,000 | ₹70,000 |
| 3 kW | ₹1,96,000 | ₹78,000 | ₹1,18,000 |
Who Can Apply? (Eligibility Criteria)
Before applying, check whether you meet these basic conditions:
- You must be an Indian citizen
- You must own a house with a rooftop suitable for solar panel installation (enough space and sunlight exposure)
- You must have a valid, active electricity connection in your name from your local DISCOM
- You should not have already availed a rooftop solar subsidy on the same connection
- Your sanctioned electricity load should generally be 10 kW or below for standard residential applications
- You do not need to belong to any specific income category — the scheme is open to general households, though the benefit is especially meaningful for low and middle-income families
Documents Required for Application
Keep these documents ready before you start your online application:
- Latest electricity bill (showing your consumer number)
- Aadhaar Card
- Proof of house ownership or address proof
- Bank account details (passbook or cancelled cheque) for subsidy transfer
- Passport-size photograph
- Mobile number linked for OTP verification
Step-by-Step Application Process
Applying for the scheme is completely online and does not require you to visit any government office in person.
Step 1: Register on the National Portal
Visit the official website pmsuryaghar.gov.in and click on “Apply for Rooftop Solar.” Select your state and electricity distribution company (DISCOM).
Step 2: Enter Consumer Details
Enter your electricity consumer number, mobile number, and email address. You will receive an OTP for verification.
Step 3: Submit the Application Form
Fill in your rooftop details, house address, and preferred system capacity based on your average monthly electricity consumption.
Step 4: Get Feasibility Approval
Your local DISCOM will review your application and approve the technical feasibility of installing a solar system on your roof.
Step 5: Choose a Registered Vendor
Once approved, select an installer from the list of MNRE-empanelled (registered) vendors shown on the portal. Do not install equipment from a non-approved vendor, or your subsidy claim may be rejected.
Step 6: Installation and Net Metering
The chosen vendor installs the solar panels and inverter. After installation, apply for net metering through the portal so that surplus electricity you generate can be sent back to the grid.
Step 7: Inspection and Commissioning
The DISCOM inspects the installation and issues a commissioning certificate confirming everything meets safety and quality standards.
Step 8: Submit Bank Details and Claim Subsidy
Upload your bank account details and the commissioning report on the portal. The subsidy amount is then transferred directly to your bank account through Direct Benefit Transfer (DBT).
How Long Does the Whole Process Take?
| Stage | Typical Time Taken |
|---|---|
| Application to feasibility approval | 7–15 days |
| Installation by vendor | 15–30 days |
| Net metering and inspection | 15–20 days |
| Subsidy credit to bank account | 30–45 days after commissioning |
| Total (approximate) | 45 to 90 days |
Benefits of the Scheme
- Free electricity: A 3 kW system can generate around 300 units of electricity per month, enough to cover most household needs
- Lower bills: Even if your consumption is higher than what you generate, your net bill drops significantly
- One-time subsidy: Direct cash support reduces your upfront investment substantially
- Low-interest loans: Banks offer collateral-free loans at concessional interest rates for the remaining cost
- Extra income: Surplus electricity sent back to the grid can earn you additional credits or payments from the DISCOM
- Long system life: Solar panels typically function well for 25 years with minimal maintenance
- Environmental impact: Reduces your household’s carbon footprint and reliance on fossil-fuel-based power
Common Mistakes to Avoid
- Choosing an inverter or solar panel that is not on the MNRE Approved List of Models and Manufacturers (ALMM) — this can cause your subsidy claim to be rejected
- Installing through a vendor who is not registered on the official portal
- Entering a mismatched name across the electricity bill, Aadhaar, and bank account
- Skipping the net metering step, which is compulsory to claim the subsidy
- Choosing a system size that does not match your actual monthly electricity usage
State-Level Additional Benefits
Several states offer additional top-up subsidies on top of the central government’s ₹78,000 support. These vary by state and change from time to time, so it’s important to check your specific state’s renewable energy department website or your DISCOM for the latest applicable top-up before applying.
Frequently Asked Questions
Is this scheme really offering “free” electricity?
Yes, in a practical sense. Once your solar system is installed, it generates electricity from sunlight at no ongoing fuel cost. A correctly sized system can offset most or all of an average household’s monthly consumption, effectively making your electricity bill zero or very low.
Can renters apply for this scheme?
No. Since the scheme involves rooftop installation and long-term ownership of solar equipment, only homeowners with a valid electricity connection in their name can apply.
What happens if my subsidy application gets rejected?
Common reasons include using non-ALMM-listed equipment, incomplete documentation, or a mismatch in personal details. You can correct the error and reapply through the portal or contact your DISCOM helpdesk for support.
Do I need to pay for the entire system upfront?
No. You can pay the vendor the net cost after subsidy, or use a bank loan to cover the amount, which is then repaid over time through easy EMIs.
Can I apply if I already have a solar system installed?
If you already received a subsidy for solar installation on the same connection previously, you generally cannot apply again for the same benefit.
Important Links
| Purpose | Link |
|---|---|
| Application Form | Click Here |
| Official Website | Click Here |
| Check Other Government Yojanas | Click Here |
| Home Page | Click Here |
| Check Application Status | Click Here |
| Contact DISCOM Helpdesk | Click Here |