PM Surya Ghar Muft Bijli Yojana Explained: Complete 2026 Guide

India’s PM Surya Ghar Muft Bijli Yojana is the world’s largest domestic rooftop solar scheme by targeted beneficiary count—1 crore (10 million) households by 2027. For homeowners, it offers up to ₹78,000 in central financial assistance (CFA) on a 3 kW system, cutting the effective payback from 8–10 years to 4–5 years. For rooftop EPC founders like Rohan—running 5–20 residential projects per month across Gujarat, Maharashtra, or Rajasthan—the scheme is also a channel multiplier: a subsidy pipeline that drives qualified, motivated leads and compresses the sales cycle by eliminating the “upfront cost” objection.

PM Surya Ghar Muft Bijli Yojana, launched February 2024, provides Central Financial Assistance (CFA) of ₹30,000 for 1 kW systems, ₹60,000 for 2 kW systems, and ₹78,000 for 3 kW systems to eligible Indian homeowners installing grid-connected rooftop solar. The scheme targets 1 crore households by 2027, with an estimated ₹75,000 Cr annual reduction in government electricity subsidies as households become net generators. Application is through pmsuryaghar.gov.in. Only modules from ALMM-listed manufacturers qualify for CFA disbursement. EPCs must register on the national vendor portal to receive scheme referrals and facilitate the post-installation subsidy transfer.

This guide follows the 5-Gate CFA Disbursement Framework — the five sequential approvals that move a homeowner from portal registration to subsidy credit in their bank account. Understanding all five gates prevents the most common EPC mistake: completing an excellent installation only to have CFA delayed or rejected because of a documentation gap at Gate 3 or Gate 4.

What is PM Surya Ghar Muft Bijli Yojana?

PM Surya Ghar Muft Bijli Yojana (Prime Minister’s Surya Ghar Free Electricity Scheme) was announced by Prime Minister Narendra Modi on February 13, 2024, and is administered by MNRE with implementation through state DISCOMs. The scheme’s full name is a compression of three objectives: “Surya Ghar” (solar home), “Muft Bijli” (free electricity), and “Yojana” (scheme / program).

The mechanism is straightforward: the government provides a capital subsidy to reduce the upfront cost of a grid-connected rooftop solar system, making the monthly savings on electricity bills start immediately and last for 25+ years. The phrase “free electricity” refers to the output of the solar system, which generates power at zero marginal cost—not a government payment for electricity bills. Once installed, the system’s generation offsets grid purchases, and any surplus is credited through net metering.

Definition. Central Financial Assistance (CFA) is the direct grant component of PM Surya Ghar—money transferred by the central government to the beneficiary's bank account after successful commissioning of the rooftop solar system and submission of required documents. CFA is not a loan and does not need to be repaid. It is separate from any state-level subsidy that states may add on top.

The scheme targets households consuming up to 300 units (kWh) per month. The typical 3 kW grid-connected rooftop system generates approximately 300–360 kWh/month in most Indian locations (assuming 4.5–5.0 peak sun hours/day), effectively offsetting the average household’s consumption and reducing the monthly grid bill to near zero.

Beyond individual household savings, the macro objectives are equally significant: MNRE projects that the 1-crore-household target, when achieved, will generate 30 GW of distributed rooftop solar capacity, produce 1,000 billion units of clean electricity over 25 years, and reduce CO₂ emissions by approximately 720 million tonnes. According to MNRE’s Solar Energy Mission data, India’s cumulative rooftop solar capacity crossed 15 GW in early 2025, with PM Surya Ghar acting as a key demand accelerant for the residential segment. For EPCs serving this market, understanding the ALMM compliance requirements is essential before finalizing any project BOQ under this scheme. For Indian EPC businesses, 30 GW of residential rooftop solar represents a multi-thousand-crore installation market spread across states, creating durable demand for rooftop engineering, procurement, and construction services through 2030 and beyond.

PM Surya Ghar CFA Subsidy Structure: How Much Can You Receive?

The CFA is structured in three tiers based on installed system capacity. The structure is designed so that smaller systems—appropriate for the lowest-income households—receive a higher subsidy per watt to maximize adoption in the target segment.

₹30,000

CFA for 1 kW system

₹30/W — highest per-watt rate in the scheme

₹60,000

CFA for 2 kW system

₹30/W for the first 2 kW

₹78,000

CFA for 3 kW or above

₹18/W for the incremental 1 kW

For systems above 3 kW (up to 10 kW maximum under the scheme), the CFA is capped at ₹78,000. This cap means a 5 kW system receives the same subsidy as a 3 kW system—the marginal CFA rate above 3 kW is zero. EPCs should present this structure clearly to homeowners: the scheme’s “sweet spot” is 3 kW for a typical household, and installing larger capacity above that should be justified by the homeowner’s actual load profile rather than by CFA optimization.

Many states offer additional state-level subsidies on top of the central CFA. For example:

Gujarat provides an additional ₹10,000–₹20,000 state subsidy for residential rooftop solar
Karnataka and Rajasthan have announced additional CFA-like programs for specific income groups
Several states provide zero-interest or subsidized loans through state renewable energy development agencies

Homeowners should check their state’s DISCOM website or state nodal agency for current state-level benefits before finalizing system sizing decisions.

Field tip. For residential projects close to the 2 kW threshold (household consuming 150–200 units/month), sizing the system at exactly 2 kW instead of 2.5 kW captures the same ₹60,000 CFA while reducing the out-of-pocket expenditure—which often improves the homeowner's willingness to commit. Use actual 12-month DISCOM bill data to right-size the system; over-sizing is a common mistake that delays payback and may exceed the DISCOM's net-metering capacity approval for lower-consumption households.

Eligibility Criteria: Who Qualifies for the Scheme?

The eligibility framework is intentionally broad—the scheme is designed to capture the maximum number of homeowners with viable rooftops. The four conditions are:

Indian citizenship: The applicant must be an Indian citizen residing in India. NRI-owned properties are not eligible.
Ownership of a suitable residential rooftop: The applicant must own the home and rooftop, with sufficient unshaded area for the intended system size. Approximately 10–12 m² of unshaded south-facing area is required per kW. Apartment flat owners without independent rooftop access cannot apply individually but may be eligible for group net-metering arrangements through their RWA.
Valid electricity connection in the applicant’s name: The scheme operates through the DISCOM’s net metering framework. An existing, registered electricity consumer number is required. The solar system connects to the grid at the same service entrance as the existing connection.
No prior solar subsidy claimed on this property: Households that have previously received CFA, state subsidy, or MNRE Jawaharlal Nehru National Solar Mission subsidy for rooftop solar on the same property are not eligible. This condition prevents double-subsidy claims. A home that had panels installed without any government subsidy may still qualify.

In practice, the eligibility conditions exclude:

Renters (do not own the rooftop)
Apartments without rooftop access
Properties with prior subsidy claims
Properties with rooftops too small or shaded for the minimum 1 kW system

Watch out. Installing the solar system before receiving DISCOM approval from the portal is the single most common mistake that disqualifies households from CFA. The PM Surya Ghar portal requires the beneficiary to receive DISCOM approval before installation begins. If the EPC installs the system before approval is documented, the CFA application will be rejected on the grounds that the pre-approval condition was not met—regardless of how well the installation was executed.

The 5-Gate CFA Disbursement Framework

The subsidy process has five sequential gates. EPCs who understand all five gates can proactively prevent the documentation failures that cause 30–60 day CFA delays.

Gate 1 — Portal Registration and Feasibility Check

Homeowner registers at pmsuryaghar.gov.in with mobile number, Aadhaar, and electricity consumer number. The portal cross-checks eligibility against DISCOM database in real time. EPC failure mode: helping the homeowner register without confirming their consumer number is active and matches their address—mismatches trigger rejections that take 7–14 days to resolve through the DISCOM.

Gate 2 — DISCOM Technical Feasibility and Capacity Approval

The homeowner's DISCOM reviews the application and approves both the technical feasibility (transformer capacity, feeder loading) and the net-metering capacity request. This approval takes 7–21 days depending on the DISCOM and feeder loading conditions. EPC failure mode: submitting a system capacity that exceeds the DISCOM's approved net-metering limit for the consumer category (some DISCOMs cap net metering at 80–90% of sanctioned load for residential consumers).

Gate 3 — ALMM Module Procurement and Vendor Confirmation

The homeowner selects an EPC from the DISCOM-empanelled vendor list on the portal, and the EPC confirms the module model and serial numbers to be installed. The module must appear on the current MNRE ALMM list. EPC failure mode: procuring modules that have been delisted from ALMM between quote and installation—ALMM is updated quarterly and products can be removed for traceability non-compliance. Check the ALMM list at the time of procurement, not the time of quoting.

Gate 4 — Net Meter Installation and System Commissioning

After solar system installation is complete, the DISCOM or its appointed meter agency installs the net meter, conducts an inspection of the installation, and issues a commissioning certificate. EPC failure mode: SLD or wiring diagram submitted to DISCOM does not match the as-built configuration—a common issue when components are substituted during installation without updating the design documentation. This triggers a re-inspection cycle that adds 15–30 days.

Gate 5 — Subsidy Claim and Bank Transfer

After commissioning, the homeowner uploads the commissioning certificate, module serial number documentation, and bank account details (cancelled cheque) to the portal. MNRE reviews and transfers CFA directly to the homeowner's bank account within approximately 30 days of document acceptance. EPC failure mode: the homeowner does not complete the portal upload after commissioning—EPCs who assist with this final step report significantly shorter CFA wait times and higher customer satisfaction scores.

How to Apply: Step-by-Step Application Process

For homeowners going through the application process for the first time—and for EPCs who want to understand the rooftop design requirements, see our guide on rooftop solar design in India:

Visit pmsuryaghar.gov.in and click “Apply for Rooftop Solar.” Register with your mobile number (OTP verified), email address, and state of residence.
Enter your electricity details: State, DISCOM name, and electricity consumer number (from your electricity bill). The portal validates this against the DISCOM database.
Fill the application form: Provide address details, rooftop dimensions, estimated monthly consumption, and requested system size (1 kW, 2 kW, or 3 kW based on your usage and roof area).
Wait for DISCOM approval: The DISCOM reviews your application and issues a technical feasibility approval—typically within 7–21 days. Do not begin installation before this approval is received.
Select an empanelled vendor: Choose your EPC installer from the DISCOM-approved vendor list on the portal. Sign the installation agreement with the vendor.
Installation: Your EPC installs the system using ALMM-listed modules and MNRE-compliant inverters. Installation typically takes 1–2 days for a residential system.
Net meter and commissioning: The DISCOM installs a net meter, inspects the installation, and issues a commissioning certificate.
Submit CFA documents: Upload the commissioning certificate, module serial numbers, and bank account details to the portal. CFA transfer typically occurs within 30 days.

Application Step	Typical Timeline	Key Document
Portal registration	1 day	Aadhaar, mobile OTP
DISCOM approval	7–21 days	Consumer number verification
Vendor selection and agreement	3–7 days	Vendor empanelment certificate
Installation	1–2 days	Module serial numbers, SLD
Net meter installation	14–30 days	DISCOM inspection certificate
Commissioning certificate	1–3 days	As-built drawing sign-off
CFA bank transfer	20–30 days after document upload	Cancelled cheque, commissioning certificate
Total end-to-end timeline	45–90 days	—

Net Metering Under PM Surya Ghar: How the “Free Electricity” Works

Net metering is the billing mechanism that creates the economic benefit of PM Surya Ghar. Understanding how it works is essential for both homeowners and the EPCs who explain it to them during the sales process.

A net meter has two registers: one counts units imported from the grid (when consumption exceeds generation) and one counts units exported to the grid (when generation exceeds consumption). At the billing period end, the DISCOM calculates:

Net units = Units imported − Units exported

If the result is positive, you pay the normal DISCOM tariff on those net units. If the result is negative (you exported more than you imported), you receive a credit at the buyback rate specified in your state’s net metering regulations.

A 3 kW system in a 5-peak-sun-hour location generates approximately 360–390 kWh/month. A typical household consuming 250–300 kWh/month will show near-zero or negative net consumption in most months, resulting in near-zero grid bills. During winter months with shorter days, grid import may increase; summer months with peak irradiance often produce export credits that offset the winter shortfall.

Net metering regulations differ by state. According to MNRE’s Grid-Connected Rooftop Solar Program guidelines, all DISCOMs are required to offer net metering for systems up to 500 kW, but buyback rates and monthly settlement procedures vary. For a state-by-state comparison of net metering procedures and buyback rates, see our guide on DISCOM net metering processes. According to the Central Electricity Authority (CEA) dashboard, India’s renewable energy installed capacity crossed 200 GW in 2025, with rooftop solar contributing an increasing share driven by PM Surya Ghar residential demand.

Need DISCOM-compliant SLD and drawings for your PM Surya Ghar project?

Download Heaven Designs' sample rooftop engineering pack—SLD, GA, and net-metering application drawings that meet DISCOM submission requirements across all major states. Used on 1 kW to 500 kW projects.

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How EPCs Can Use PM Surya Ghar to Scale Residential Business

For Rohan—an EPC founder handling 5–20 residential projects per month—PM Surya Ghar is simultaneously a lead source, a sales accelerator, and a margin protection mechanism. Here is how to extract maximum business value from the scheme:

Register as an empanelled vendor. DISCOM-empanelled EPC vendors receive direct referrals from homeowners who apply through the PM Surya Ghar portal and need to select an installer. In high-application-volume states like Gujarat, Maharashtra, and Rajasthan, empanelled vendors report receiving 10–30 qualified inbound leads per month through the portal referral system—leads with pre-verified eligibility and DISCOM-approved capacity.

Standardize your ALMM-compliant BOQ. The fastest way to accelerate project execution under the scheme is to have a pre-configured BOQ for 1 kW, 2 kW, and 3 kW residential systems using ALMM-listed modules and MNRE-approved inverters. Standardizing the design documentation—including the SLD and net-metering application drawing in the DISCOM’s required format—allows your team to move from site visit to DISCOM submission in 2–3 days rather than 7–10 days.

Offer subsidy facilitation as a service. Many homeowners complete the installation but delay the portal document upload (Gate 5), which holds up their CFA transfer. EPCs who provide a subsidy facilitation service—helping the homeowner complete the portal upload and track the CFA status—create a stickier customer relationship and generate positive referrals that are worth more than the facilitation time.

Track ALMM quarterly updates. According to Mercom India’s solar market research, ALMM-related module procurement issues were among the top five reasons for PM Surya Ghar CFA delays in FY25. MNRE updates the ALMM list quarterly. Modules added, removed, or changed between updates affect your BOQ. An EPC who quotes and orders based on a stale ALMM list risks procuring a delisted module that fails Gate 3 and requires a costly mid-project substitution. Subscribe to MNRE notifications or designate a team member to check ALMM compliance at every project initiation.

PM Surya Ghar vs Other Solar Schemes: How It Compares

Scheme	Target Beneficiary	CFA Structure	Max System Size	Key Eligibility
PM Surya Ghar	Residential homeowners	₹30,000–₹78,000 flat CFA	10 kW (CFA capped at 3 kW)	ALMM modules, DISCOM approval
PM-KUSUM Component B	Farmers, agricultural feeders	30% CFA + state contribution	Up to 2 MW per project	Agricultural land, SPD empanelment
Rooftop Solar Phase II (RTSM)	Housing societies, institutions	20–40% CFA by system size	No upper limit (tiered)	DISCOM feasibility, ALMM compliance
State-level SRISTI (Gujarat)	Residential, commercial	Additional 10–20% on top of CFA	10 kW residential	GEB/DGVCL consumer, Gujarat domicile

For an EPC serving primarily residential customers, PM Surya Ghar is the primary scheme. For clients with agricultural connections or multiple rooftops, PM-KUSUM Component B and RTS Phase II add additional revenue streams that use similar engineering and documentation workflows. Heaven Designs produces DISCOM-compliant drawing sets for all scheme variants.

How Heaven Designs Helps EPCs Execute PM Surya Ghar Projects

Every PM Surya Ghar project requires a DISCOM-compliant SLD and GA drawing as part of the net-meter application. Getting this drawing right the first time means the difference between a 7-day DISCOM approval and a 30-day re-submission cycle.

Solar Rooftop Detailed Engineering Design — complete IFC-grade drawing pack for residential rooftop projects: GA, SLD, DISCOM net-metering application drawings, structural roof load assessment, and ALMM-compliant BOQ. Delivered in state-specific DISCOM format.
Solar 3D Pre-Design — 48-hour shading model and yield estimate for any rooftop. Use it to right-size the system for the homeowner’s actual load profile before submitting the DISCOM application.
Electrical CEIG Drawings — CEIG-approved electrical drawings required in some states (Maharashtra, Karnataka) for residential solar installations above a threshold capacity.
Site Survey & Land Feasibility — pre-application rooftop assessment including shading analysis, structural suitability check, and DISCOM feeder capacity proximity review.
Download sample deliverables — see what a DISCOM-ready SLD and net-metering application drawing look like for a 3 kW residential project.

Contact Heaven Designs for a per-project or monthly retainer arrangement for PM Surya Ghar design documentation.

FAQ

What is the maximum subsidy under PM Surya Ghar Muft Bijli Yojana?

The maximum Central Financial Assistance (CFA) under PM Surya Ghar is ₹78,000 for systems of 3 kW or above. This is structured as ₹30,000 for the first 1 kW, ₹30,000 for the second 1 kW, and ₹18,000 for the third 1 kW. Systems above 3 kW—up to the scheme’s 10 kW ceiling—receive the same ₹78,000 CFA, not a proportionally higher subsidy. Many states also offer additional state-level subsidies on top of the central CFA; the total combined subsidy depends on the state in which the installation occurs.

Do I have to pay anything upfront before receiving the CFA?

Yes. The homeowner or their bank (if a loan is involved) must pay the full installation cost upfront. The CFA is reimbursed—transferred directly to the homeowner’s bank account—approximately 30 days after the commissioning certificate and required documents are uploaded to the PM Surya Ghar portal. The scheme does not provide advance payment; it is a post-installation grant. Low-interest loans are available from many nationalized banks and state renewable energy agencies to help homeowners manage the upfront payment while waiting for CFA transfer.

Which solar modules qualify for PM Surya Ghar CFA?

Only modules listed on MNRE’s Approved List of Models and Manufacturers (ALMM) qualify for CFA disbursement. The ALMM is maintained by MNRE and updated quarterly. Modules must also hold BIS certification under IS 14286 or IS 16221 for safety compliance. Inverters must be MNRE-approved models. Solar shingles, thin-film modules, and any other product not listed on the current ALMM do not qualify for CFA under PM Surya Ghar.

How does net metering work under PM Surya Ghar?

Net metering is the billing arrangement that allows a PM Surya Ghar beneficiary to send surplus solar generation back to the grid and receive credit against future electricity bills. The DISCOM installs a bidirectional net meter after system commissioning. Monthly billing records both imports (grid to home) and exports (home to grid), with the net difference charged or credited at state-specific tariff rates. Most DISCOMs settle net metering accounts monthly; some states (Gujarat, for example) use a monthly-carry-forward system where export credits accumulate over the year. For state-specific net metering procedures, see DISCOM net metering processes.

Can apartment owners apply for PM Surya Ghar?

Individual apartment flat owners without independent rooftop access cannot apply as individual beneficiaries under PM Surya Ghar. However, Resident Welfare Associations (RWAs) can apply for group net metering arrangements where a single rooftop solar system serves multiple flats with individual metering. The CFA structure for group net metering is calculated on the total installed capacity, capped at ₹78,000 per participating household (maximum 3 kW per household contribution). Several MNRE guidelines on group net metering are currently being finalized; check the latest MNRE circular before submitting an RWA application.

Is the PM Surya Ghar scheme available in all states?

Yes, PM Surya Ghar is a national scheme available across all states and Union Territories. Implementation occurs through state DISCOMs, which vary in their application processing speed, net metering approval timelines, and additional state-level benefits. Some DISCOMs have been faster to process applications than others due to staffing and portal integration differences. Rural electrification areas under state electricity boards also qualify, though processing timelines in off-grid or recently electrified areas may be longer.

What happens if my solar system generates more electricity than I use?

Surplus generation is exported to the grid through the net meter and credited to your account at the buyback rate specified in your state’s net metering regulation. In most states, the buyback rate is equal to the retail tariff rate (full offset) or a specifically notified export tariff, which may be lower than the retail rate. In states with monthly settlement (most of India), excess credits are carried forward to the next billing period up to the end of the financial year, at which point any remaining balance may or may not be paid out as cash—depending on the state’s net metering policy. Gujarat, Maharashtra, and several other states have active annual credit payout policies.