Solar & Backup
PM Surya Ghar Solar Subsidy: How Much You Get and How to Apply
Subsidy by system size, what you actually pay, payback time, and the application steps without the common mistakes.
By Team Vind · Updated · 6 min read
Under PM Surya Ghar: Muft Bijli Yojana, the central government pays homes up to ₹78,000 towards a rooftop solar system. With a typical bill, a system can pay for itself in a few years and then cut your electricity bill for 20 years or more. Here's how much subsidy you get for each system size, what you actually pay, and how to apply without getting caught out.
How much subsidy you get
| System size | Central subsidy | Suits monthly use of about |
|---|---|---|
| 1 kW | ₹30,000 | 120 units |
| 2 kW | ₹60,000 | 240 units |
| 3 kW | ₹78,000 | 360 units |
| 5 kW | ₹78,000 | 600 units |
Some states add their own top-up on the central subsidy, so ask your DISCOM or vendor. Housing societies (RWAs) can also get a subsidy for shared facilities like lifts and lights.
What you actually pay
Assuming about ₹65,000 per kW installed and ₹8 per unit saved (both vary by city and vendor):
| System | Cost | After subsidy | Saving a month | Pays back in |
|---|---|---|---|---|
| 1 kW | ₹65,000 | ₹35,000 | ₹960 | 3 years |
| 2 kW | ₹1,30,000 | ₹70,000 | ₹1,920 | 3 years |
| 3 kW | ₹1,95,000 | ₹1,17,000 | ₹2,880 | 3.4 years |
| 5 kW | ₹3,25,000 | ₹2,47,000 | ₹4,800 | 4.3 years |
3 kW is the sweet spot for most homes using 300–400 units a month. It gets the full ₹78,000, and anything bigger gets no extra central subsidy.
Try it: Solar Panel Calculator
A 2.5 kW System Suits You
- You pay₹93,500(58%)
- Subsidy₹69,000(42%)
Who can apply
- Homes with a residential electricity connection, applying in the name on the electricity bill.
- A roof with enough shade-free space: roughly 100 sq ft per kW.
- Homes that haven't already taken a central subsidy for rooftop solar.
How to apply, step by step
- Register at pmsuryaghar.gov.in (the official portal) with your state, DISCOM, electricity consumer number and mobile number.
- Apply for rooftop solar. Your DISCOM checks feasibility and approves the application.
- Choose a vendor registered with your DISCOM and have the system installed. You pay the full cost at this stage, or take a loan.
- Submit the installation details on the portal and apply for a net meter. The DISCOM inspects and commissions the system.
- Submit your bank details. The subsidy is credited to your bank account, usually within about a month of commissioning.
Loans and net metering
Public sector banks offer collateral-free solar loans at concessional rates, around 7% for systems up to 3 kW, though the rate depends on your bank and credit score. With net metering, unused daytime power goes to the grid and is set off against what you draw at night, so you pay only for the net units. Extra units beyond your use are usually credited at a lower rate.
Planning the inverter and battery side too? Try the inverter battery backup calculator.
Frequently asked questions
How much subsidy for a 3 kW solar system?
₹78,000 from the central government: ₹30,000 each for the first 2 kW and ₹18,000 for the 3rd. Some states add more.
Is there more subsidy for 5 kW or 10 kW?
No. The central subsidy for homes stops at ₹78,000, reached at 3 kW. A bigger system can still make sense for high bills, but without extra central subsidy.
When is the subsidy paid?
After installation, net metering and the DISCOM's inspection. It goes straight to your bank account, usually within about a month of commissioning.
How much roof space do I need?
About 100 sq ft of shade-free roof per kW, so roughly 300 sq ft for a 3 kW system.
These results are estimates for planning only, not financial, investment or tax advice. Rates and rules change, and your bank, fund house or employer may calculate slightly differently. Check with them or a qualified adviser before you decide.
Sources
Last reviewed: 10 October 2026