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

Under this scheme, residential consumers who set up solar roof 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 subsidy in India, and how can individuals claim it? Let’s understand it further.

The scheme aims to help millions of Indian households reduce electricity bills and shift toward clean energy.

Under the PM Surya Ghar: Muft Bijli Yojana, homeowners installing solar roof can 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).

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

The subsidy amount depends on the size of the rooftop solar system installed.

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.

Some Indian states offer additional top-up incentives on top of the central subsidy to promote rooftop solar installations.

Note: State subsidies are often time-bound and depend on budget availability.

Example: Rooftop Solar Cost After Subsidy

To understand the impact of the subsidy, consider this example:

With the subsidy, homeowners can reduce installation costs significantly while benefiting from lower electricity bills.

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.

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

To receive the rooftop solar subsidy, applicants must meet the following conditions:

• The household must have a valid electricity connection
• The rooftop solar system must be grid-connected
• Installation must be done through empaneled vendors
• Only domestically manufactured solar modules and cells should be used
• The project must follow MNRE technical guidelines
• The entire application process must be completed through the National Rooftop Solar Portal

Central Financial Assistance (CFA) is the government subsidy provided under the rooftop solar program managed by the Ministry of New and Renewable Energy.

This subsidy aims to accelerate the adoption of rooftop solar systems across residential households in India.

Key features include:

• Available for residential rooftop solar systems
• Subsidy is credited directly to the consumer’s bank account
• Implemented through state DISCOMs
• Uses Direct Benefit Transfer (DBT) for transparency

The government has simplified the process through the National Portal for Rooftop Solar.

Consumers can apply online and track their application from registration to subsidy disbursement.

Step-by-Step Application Process

Step 1:
Register and submit your application on the official portal pmsuryaghar.gov.in

Step 2:
Your electricity distribution company (DISCOM) will conduct a technical feasibility study within about 15 days.

Step 3:
Once approved, install the solar system through a registered vendor.

Step 4:
Apply for net metering through the portal.

Step 5:
The DISCOM will inspect the installation and issue a commissioning certificate.

Step 6:
Submit your bank details on the portal.

Step 7:
The subsidy will be credited to your bank account within approximately 30 days.

Applicants typically need the following documents:

• Latest electricity bill
• Identity proof (Aadhaar or PAN)
• Address proof
• Bank account details
• Roof ownership proof
• Installation certificate from vendor

Document requirements may vary slightly depending on the state DISCOM policies.

1. Lower Electricity Bills
A rooftop solar system can significantly reduce monthly electricity expenses.
2. Government Subsidy Support
Homeowners can receive up to ₹78,000 subsidy under the rooftop solar scheme.
3. Environment Friendly
Solar energy reduces carbon emissions and dependence on fossil fuels.
4. Energy Independence
Generating electricity at home reduces reliance on grid power.
5. Long-Term Savings
Solar systems typically last 20–25 years, providing long-term financial benefits.

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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 reputable solar panels, solar inverters, and solar accessories to you and make your shift to solar cost-effective and easy.

Ornate Solar is also a trusted BESS manufacturer company in India. We have developed UnityESS, an advanced energy storage solution to provide reliable power and energy independence. We have 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.