To boost solar adoption in the country and meet the increasing electricity demand, the Indian government launched the PM Surya Ghar: Muft Bijli Yojana.

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 incentive and how can individuals claim it? Let’s understand it further.

• Solar energy systems with a capacity of up to 2 kW are eligible for a subsidy of up to ₹30,000/ kW.
• For a system capacity of 3kW, consumer can avail a subsidy of ₹78,000.
• For all system capacities exceeding 3kW, a fixed subsidy of ₹78,000 will be provided.

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.

CFA is available to residential consumers with a grid-connected rooftop solar plant. Group housing societies and RWAs of 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 have to be met to avail the 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 incentive in their bank accounts.

With the introduction of the CFA, 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.

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