How Much Subsidy is Available Under PM Surya Ghar Free Electricity Scheme? Solar Panels Can Be Installed on Your Rooftop in Just These 6 Steps

PM Surya Ghar Scheme: If you are also troubled by heavy monthly electricity bills, then the central government’s flagship scheme, “PM Surya Ghar Muft Bijli Yojana,” is a great opportunity for you. Under this scheme, the government is providing huge subsidies to help people install solar panels on their rooftops, allowing them to get up to 300 units of free electricity every month.

However, the biggest questions for middle-class families are: how much subsidy is available for different kilowatt (kW) systems, how much installation costs, and how long it takes to recover the investment. Let’s answer all these questions.

How Much Subsidy is Available?

Normally, installing solar panels costs around ₹60,000 to ₹80,000 per kW without subsidy. But under the PM Surya Ghar Scheme, the government covers 40% to 60% of the cost as subsidy:

• 1 kW system: Subsidy up to ₹30,000
• 2 kW system: Subsidy up to ₹60,000
• 3 kW or more system: Maximum subsidy of ₹78,000

An important point is that even if you install a system larger than 3 kW, the subsidy will remain capped at ₹78,000.

Double Benefit for Uttar Pradesh Residents

Some state governments, like Uttar Pradesh, are also offering an additional state subsidy of ₹30,000 apart from the central subsidy. This means residents of UP can save up to ₹1,08,000 in total.

Cost and Savings Calculation: In How Many Years Will the Money Be Recovered?

Suppose you install a 3 kW solar system costing around ₹1,80,000.

• After the central government subsidy of ₹78,000, your actual expense becomes only ₹1,08,000.
• A 3 kW solar system generates around 250–300 units of electricity every month.
• At a rate of ₹8 per unit, this can save you about ₹2,200 per month or ₹26,400 per year.

According to this calculation, your full investment will be recovered in about 4 years and 1 month. In Uttar Pradesh, due to the additional subsidy, the investment can be recovered in just 3 years.

Since solar panels usually last for more than 25 years, you can enjoy almost 20 years of free electricity after recovering the cost.

Solar Panel Installation in Just 6 Steps

To apply for this scheme, you must be:

• An Indian citizen
• Have your own rooftop
• Have a valid electricity connection

If eligible, you can apply in these 6 easy steps:

Step 1: Registration

Visit the official national portal:
PM Surya Ghar Portal

Register by entering your state, DISCOM (electricity distribution company), consumer number, mobile number, and email ID.

Step 2: Apply Online

Log in using your consumer number and mobile number and fill out the online form for “Rooftop Solar.”

Step 3: Feasibility Approval & Installation

After receiving technical approval from the DISCOM, get the solar plant installed on your rooftop through any registered vendor listed on the portal.

Step 4: Apply for Net Metering

After installation, submit the plant details on the portal and apply for net metering.

Step 5: Inspection

DISCOM officials will inspect the plant, and after the net meter is installed, a Commissioning Certificate will be generated on the portal.

Step 6: Subsidy Transfer

Upload your bank account details and cancelled cheque on the portal after receiving the commissioning report. The subsidy amount will be transferred directly to your bank account within 30 days of application.

Easy Loan Facility Also Available

If you do not have enough money for the initial investment, the government is also providing collateral-free loans through banks at a very low interest rate (around 7%). This interest rate is only 0.5% higher than the RBI repo rate, which keeps EMI payments affordable for customers.