To boost solar adoption in the country and meet the increasing electricity demand, the Indian government launched the PM Surya Ghar: Muft Bijli Yojana a solar panel subsidy scheme aimed at residential consumers.

Under this scheme, residential consumers who set up rooftop solar systems can avail up to 60% subsidy on the installation cost!

Moreover, individuals from across the country can apply for these grants. But how much is the solar panel subsidy and how can individuals claim it? Let’s understand it further.

Under the PM Surya Ghar: Muft Bijli Yojana, homeowners installing rooftop solarcan avail up to ₹30,000/kW (up to 2kW) and a fixed ₹78,000 for 3kW and above. This Central Financial Assistance (CFA) is directly credited to the consumer’s bank account under Direct Benefit Transfer (DBT).

But that’s not all—several states offer additional subsidies, and new rules for MSMEs, schools, housing societies, and agricultural users are gradually being introduced. Let’s break it down in detail.

This Central Financial Assistance (CFA) is calculated based on either the module capacity or the inverter capacity, whichever is lower.

In addition to the CFA, some Indian states like Jammu, Uttar Pradesh, Assam, and Kerala offer their own separate solar subsidies. However, many of these state incentives are time-bound, which means they are provided based on availability and active campaigns.

Several states offer additional support on top of the central CFA, making solar even more cost-effective:

The solar panel subsidy (CFA) is available to residential consumers with a grid-connected rooftop solar plant. Group housing societies and RWAs with solar capacities up to 500kW can also avail the incentive.

The grant is for households that have the roof space to set up solar panels. In case of limited roof space, consumers can also install solar systems on terraces, balconies, or elevated structures.

MNRE has set certain stipulations that must be met to avail the solar panel subsidy, which we will discuss in the coming sections.

At the end of 2022, the Indian government announced that it was implementing the Rooftop Solar Programme Phase II. Under the programme, the Ministry of New and Renewable Energy (MNRE) will provide Central Financial Assistance to residential consumers for installing rooftop solar systems (RTS).

The programme will be implemented by DISCOMs and respective state agencies. The best part about the CFA is that it offers direct benefit transfer (DBT), i.e. consumers will directly receive the solar panel subsidy amount in their bank accounts.

With the introduction of the CFA, solar panel subsidy calculations have been largely simplified. Also, the incentive amount is equal for consumers from all states, except the northeastern states and certain union territories.

Recently, the government launched the National Portal for Rooftop Solar, to make the process for applying for solar much simpler. Now, a consumer from anywhere across India, can directly apply for a solar subsidy online, and track the entire process from application to the transfer of subsidy funds into the bank account.

To be eligible for the grant the following criteria have to be met:

• The household must have a valid electricity connection.
• The household should not have availed any other subsidy on solar panels.
• The entire solar project has to be implemented through the national portal. The application to the technical feasibility check to installation- every stage must be undertaken based on the portal procedure.
• Consumers have to get their system installed through empaneled vendors (The list of state-wise registered vendors is available on the portal).
• Only domestically manufactured solar panels (both module and cells) can be used.
• Compliance with all MNRE guidelines and technical specifications is mandatory.

1. Register and submit your application at www.pmsuryaghar.gov.in. No vendor or third party is allowed to do so on the beneficiary’s behalf.
2. The DISCOM will conduct a technical feasibility study within the next 15 days.
3. Once approved, you can install the system through registered vendors.
4. After installation, you can apply for net metering and the request will be forwarded to the DISCOM.
5. There will be an inspection of the plant and if all guidelines were met, a commissioning certificate will be issued.
6. Once you submit your bank details in the portal, the funds will be credited to your account in 30 days.

• Solar in Rajasthan: Potential, Solar Policy and Subsidy
• Solar in Gujarat: Potential, Solar Policy and Subsidy
• Most Commonly Asked Questions About Solar- Answered

Ornate Solar is India’s leading solar company with 10 years of experience. By partnering with the best-in-class global solar brands, we bring the most reputed solar panels, solar inverters, and solar accessories to you and make your shift to solar cost-effective and easy.

We have also developed India’s first Integrated InRoof system- which turns solar panels into the roof and eliminates the need for sheet roofing.

For more information, please give us a call at 1800 2026 252.