"PM Surya Ghar Yojana: up to ₹78,000 off a rooftop solar system, and the March 2027 deadline"

By the author of From Rupees to Riches: Master the Indian Wealth Game. Published 2 November 2026. Scheme details last verified 2 November 2026.

The PM Surya Ghar Yojana subsidy is open to any household that owns a house with a suitable roof, has its own electricity connection and has not taken a rooftop solar subsidy before. You install a grid-connected solar system through a vendor registered on the government portal, and the central government pays ₹30,000 for each of the first 2 kW and ₹18,000 for the third kW. That is ₹78,000 for a 3 kW system, straight into your bank account.

In the North-Eastern states, the hill states and the island territories, the rates are higher: ₹33,000 and ₹19,800 a kW, or ₹85,800 for 3 kW. Banks also lend for the system without collateral at a rate linked to the RBI repo rate. The scheme runs until 31 March 2027, so a household that wants the subsidy has about five months to get a system installed, inspected and claimed.

What PM Surya Ghar is

PM Surya Ghar: Muft Bijli Yojana is a central scheme run by the Ministry of New and Renewable Energy. The Union Cabinet approved it on 29 February 2024 with an outlay of ₹75,021 crore and a target of rooftop solar on one crore homes. The idea behind "Muft Bijli" (free electricity) is that a 3 kW system makes more than 300 units a month on average, enough to cover a typical home's use, with any surplus exported to the grid.

The scheme is live and spending. A Rajya Sabha reply on 28 July 2026 reported 39,72,447 rooftop systems installed, covering 48,02,717 households, as on 22 July 2026, and a budget of ₹22,000 crore for 2026-27.

The MNRE operational guidelines set the implementation period "till 31st March, 2027". No extension had been announced when we checked on 2 November 2026.

Who can apply: PM Surya Ghar eligibility

You qualify if all of these are true, according to the government's scheme explainer and the guidelines:

• You are an Indian citizen.
• You own the house, and its roof (or an elevated structure on your property) is suitable for solar panels.
• You have a valid residential electricity connection in your name, with a consumer account number.
• You have not taken a subsidy for rooftop solar before. If you did, under the older Phase II scheme, you can claim only for the extra capacity up to 3 kW.
• The system is grid-connected. Off-grid systems with batteries only do not qualify.
• You pay for the system yourself, with your own money or a loan (the "capex" model). Systems that a company or your DISCOM owns and installs on your roof are covered by separate rules.

There is no income limit. Shops, offices and other non-residential connections cannot claim the residential subsidy.

What you get: PM Surya Ghar subsidy amounts

The central financial assistance (CFA) is fixed by capacity, not by what your vendor charges. Here is what it comes to, worked out from the per-kW rates in the guidelines with a Node script. The guidelines also set benchmark costs (₹50,000 a kW for the first 2 kW and ₹45,000 a kW after that; ₹55,000 and ₹49,500 in special category states), and the last column shows what you would pay at those costs. Real quotes vary, because you agree the price with the vendor.

Two things follow from the table. The subsidy covers 60% of the benchmark cost up to 2 kW and about 53.8% at 3 kW. Above 3 kW it stops growing, so a 5 kW system gets the same ₹78,000 and the subsidy falls to about 33.2% of the benchmark cost.

The government's own sizing guide links system size to your bill: 1 to 2 kW for homes using up to 150 units a month, 2 to 3 kW for 150 to 300 units, and 3 kW or more above 300 units (PIB, 13 March 2025). Check your last 12 bills before you pick a size.

Special category states and union territories are the North-Eastern states, Uttarakhand, Himachal Pradesh, Jammu and Kashmir, Ladakh, Andaman and Nicobar Islands and Lakshadweep. Housing societies and resident welfare associations can also claim ₹18,000 a kW for a shared system that powers common facilities such as lifts, lights and EV chargers, up to 500 kW.

The loan, and what it costs

Public sector banks offer collateral-free loans for systems up to 3 kW. The July 2026 Rajya Sabha reply gave the rate as 5.75% a year, which it described as the repo rate plus 0.5 percentage points, for a tenure of up to 10 years. The government's March 2025 explainer puts the loan limit at ₹2 lakh. You can apply for the loan through the national portal, which links to the JanSamarth loan platform.

The RBI raised the repo rate to 5.50% on 7 October 2026. If banks keep the repo-plus-0.5 link, the rate would now be 6.00%. Ask your bank which rate applies. Here is the EMI on a 10-year loan for a 3 kW system at the benchmark cost, computed with the same formula as our home loan prepayment calculator:

The subsidy goes to you, not the bank, after the system is inspected. If you use it to prepay part of the loan, the EMI or tenure drops.

Some states add their own top-up on the central subsidy. Gujarat, for example, announced an extra state subsidy in October 2026 for homes installing up to 2.18 kW. Ask your DISCOM, or check your state page, for what applies where you live.

How to apply on the official portal

Apply only at pmsuryaghar.gov.in. These are the nine steps the government lists:

1. Register. Enter your personal details and your electricity consumer account number. You need a valid consumer number to apply.
2. Log in with your consumer number and mobile number.
3. Apply for rooftop solar using the online form. The portal generates an application ID.
4. Pick a registered vendor. Only vendors listed on the portal can install a subsidised system. You agree the design and price with them.
5. Get feasibility approval. Under the guidelines, applications for systems up to 10 kW are treated as accepted without a separate approval, subject to your state's rules.
6. Install. The vendor installs the system using made-in-India (DCR) solar modules.
7. Submit plant details and apply for a net meter. Upload the system details, geo-tagged photos and documents on the portal.
8. DISCOM inspection. The DISCOM installs the net meter, inspects the system and issues the commissioning certificate on the portal.
9. Claim the subsidy. Submit your bank details and a cancelled cheque. The guidelines say the CFA is processed within 15 days of DISCOM approval. The government's explainer says you receive it within 30 days.

Timing matters now. Steps 6 to 9 depend on the vendor and the DISCOM, and both get busy near a deadline. With the scheme due to end on 31 March 2027, start early rather than in March.

Documents you need

• Your latest electricity bill, with the consumer account number.
• Mobile number and email address for the portal.
• Bank details: a cancelled cheque image, a bank statement or a passbook scan.
• Geo-tagged photos of the installed system, and loan account details if you took a loan.
• From the vendor: module and inverter serial numbers, warranty cards, test reports and the wiring layout.

Your DISCOM may ask for more, such as ID proof, proof that you own the house or a signed net metering agreement. The portal shows the list for your state.

Common reasons subsidy claims get rejected or held up

• Imported panels. Any non-DCR module "in any form" makes the whole installation ineligible. Ask the vendor for the DCR certificate and the module serial numbers before you pay.
• A vendor not on the portal. A cheaper local installer may do a good job, but you lose the subsidy.
• A previous solar subsidy. If your home already got one, you can claim only the balance up to 3 kW.
• An off-grid system. Battery-only systems do not qualify.
• Details that do not match. The name and consumer number must match your electricity bill, and the installed capacity must match what you applied for. The subsidy is paid on the capacity the DISCOM actually finds.
• A relocated or second-hand system. Moving an existing system to a new roof does not qualify.
• Missing bank details. The e-token for your subsidy is redeemed from your portal profile. Without verified bank details, the money cannot be paid.

Similar schemes worth comparing

• Your state's top-up. Several states and DISCOMs add to the central subsidy. Your state page lists state schemes we have verified.
• Paying it off faster. If you borrow for the system, the home loan prepayment calculator shows how a lump sum, such as the subsidy, cuts the interest.
• Rates that move your loan. The solar loan is linked to the RBI repo rate. Our guide to the October 2026 repo rate hike explains how a rate change reaches EMIs.
• Other government-backed loans. PM-Vidyalaxmi works the same way for education: a collateral-free loan with the government carrying part of the cost.

Questions people ask

Will my electricity bill really be zero? Not always. "Muft Bijli" refers to the up to 300 units a month a 3 kW system can produce. Your bill depends on how much you use, how much the system makes, your state's net metering rules and fixed charges. The July 2026 Rajya Sabha reply said bills fell for most participants and that many households had zero bills in some months.

Can I install 5 kW and still get the subsidy? Yes, but the subsidy stays at ₹78,000 (₹85,800 in special category states). There is no central subsidy on capacity above 3 kW.

I live in a flat. Can I apply? Not on your own unless you have your own roof and connection. Your housing society or RWA can apply for a shared system at ₹18,000 a kW for common facilities.

Does the subsidy go to the vendor? No. Under the capex model it is paid into your bank account after DISCOM inspection. Pay the vendor the agreed price.

What happens after 31 March 2027? The guidelines end the scheme on that date. Nothing official has been said yet about an extension or a successor, so do not plan around one.

Never pay an agent to apply. Apply only on the official portal linked above.

For education only. Not investment, tax or legal advice. See our disclaimer.