PM Surya Ghar Subsidy Eligibility: Who Qualifies
PM Surya Ghar Muft Bijli Yojana pays Rs 30,000 per kW for the first 2 kW and Rs 18,000 for the third, capped at Rs 78,000 for a residential rooftop system. Eligibility turns on four conditions, and applicants are rejected far more often for failing the last two than the first two. The system must be grid-connected with net metering, installed by a vendor empanelled on the national portal, using BIS-certified panels and a BIS-certified grid-tied inverter. Battery storage is not covered at all, and neither is any off-grid system, however well built.
At a glance
Question | Answer |
|---|---|
Maximum subsidy | Rs 78,000 |
Rate, first 2 kW | Rs 30,000 per kW |
Rate, third kW | Rs 18,000 |
Above 3 kW | No additional subsidy |
Off-grid systems | Not eligible |
Battery storage | Not covered |
DIY installation | Not eligible |
Non-empanelled vendor | Not eligible |
Who can apply | Residential consumers with a valid electricity connection |
Where | pmsuryaghar.gov.in |
How much subsidy does PM Surya Ghar actually pay?
The subsidy is banded, and the bands are the reason most households install exactly 3 kW.
System size | Subsidy calculation | Total subsidy | Subsidy per kW |
|---|---|---|---|
1 kW | 1 x Rs 30,000 | Rs 30,000 | Rs 30,000 |
2 kW | 2 x Rs 30,000 | Rs 60,000 | Rs 30,000 |
3 kW | Rs 60,000 + Rs 18,000 | Rs 78,000 | Rs 26,000 |
4 kW | Rs 78,000, capped | Rs 78,000 | Rs 19,500 |
5 kW | Rs 78,000, capped | Rs 78,000 | Rs 15,600 |
10 kW | Rs 78,000, capped | Rs 78,000 | Rs 7,800 |
Key takeaway: the subsidy per kW falls sharply above 3 kW. That does not mean a larger system is a bad idea if your consumption justifies it. It does mean the fourth kW onwards is bought entirely at your own cost, so size on consumption rather than on the subsidy cliff.
The four eligibility conditions, and which one rejects people
Condition | What it requires | How often it causes rejection |
|---|---|---|
1. Residential rooftop | A residential electricity connection and rooftop rights | Low. Most applicants pass |
2. Grid-connected with net metering | On-grid system, DISCOM net meter installed and commissioned | Moderate. Delays are common where DISCOM meter supply is slow |
3. Empanelled vendor | Installer must be registered on the PM Surya Ghar portal | High. The most common reason for rejection |
4. BIS-certified components | Both panels and grid-tied inverter must carry BIS certification, with model numbers matching the approved list | High. Substituting a cheaper panel after quotation invalidates the claim |
Conditions 3 and 4 are where money is lost, and both are avoidable. Verify vendor empanelment on the portal yourself before signing anything, and get the exact panel and inverter model numbers written into the quotation so a substitution cannot happen silently at installation.
What the scheme does not cover
This is the section commercial installer pages tend to leave out, because it shrinks the addressable market.
- Off-grid systems. A panel charging a battery through a charge controller is not eligible, no matter the size or quality.
- Battery storage. Not subsidised in any configuration. On a hybrid system, the panel capacity may qualify while the battery does not.
- DIY installation. Even with fully compliant components, self-installation is not eligible.
- Commercial, industrial or institutional premises. The scheme is residential.
- Systems above 3 kW, beyond the cap. Additional capacity is at full cost.
- Ground-mounted systems in most states. The scheme is written around rooftop installation.
- Retrofitting an existing system. Subsidy is disbursed against a new, commissioned, net-metered installation.
If you want... | Is it subsidised? | What to do instead |
|---|---|---|
Backup during power cuts | No | This is a battery need. Use an inverter and battery system, which the scheme does not cover |
Lower monthly bills | Yes | Grid-tied 1 to 3 kW with net metering |
Both bills and backup | Panel yes, battery no | Hybrid system; claim on the panel capacity only |
Off-grid power in an unelectrified area | No | Standalone solar power system, funded separately |
A small 100W or 200W panel setup | No | Buy it on its merits, not on subsidy expectations |
What a 3 kW system actually costs after subsidy
Line item | Indicative amount |
|---|---|
3 kW system, supplied and installed | Rs 1,80,000 to Rs 2,20,000 |
Less PM Surya Ghar subsidy | Minus Rs 78,000 |
Net cost to household | Rs 1,02,000 to Rs 1,42,000 |
Typical generation | 360 to 450 units a month |
Value at Rs 8 per unit | Rs 2,880 to Rs 3,600 a month |
Simple payback on net cost | Roughly 30 to 45 months |
Two things to check before trusting that payback figure. First, your DISCOM's net metering policy determines what you are credited for exported units, and some states credit exports at a lower rate than the retail tariff, which lengthens payback. Second, subsidy disbursement takes time after commissioning, typically weeks to months, so you fund the full amount upfront regardless.
The application process, step by step
- Register on pmsuryaghar.gov.in with your state, DISCOM and consumer number.
- Apply for feasibility approval from your DISCOM through the portal. Do not order equipment before this clears.
- Choose a vendor from the empanelled list on the portal. Verify the registration yourself. A vendor claiming empanelment is not the same as a vendor appearing on the list.
- Get the quotation with exact model numbers for panels and inverter, and confirm both carry BIS certification.
- Install after approval, not before. Work started before feasibility approval is a common disqualification.
- Apply for net metering and wait for the DISCOM to install and commission the meter. This is usually the longest step.
- Submit the commissioning certificate and bank details through the portal.
- Subsidy is credited to your bank account after verification.
Who this scheme genuinely suits
Fit | Profile | Reasoning |
|---|---|---|
Strong fit | Own the roof, monthly bill above Rs 2,500, stable grid | Payback under four years after subsidy |
Strong fit | Consumption 300 to 450 units a month | Matches a 3 kW system, the subsidy sweet spot |
Marginal fit | Bill under Rs 1,000 a month | A 1 kW system is subsidised but payback stretches past seven years |
Marginal fit | Rented property with owner consent | Legally workable, but you leave the asset behind |
Not a fit | Primary goal is backup during cuts | The scheme covers generation, not storage. Different product entirely |
Not a fit | Frequent long outages | Grid-tied inverters shut down during an outage for safety. Without a battery you get nothing during a cut |
Not a fit | Shaded or structurally unsuitable roof | Feasibility approval will fail, correctly |
The sixth row is the misconception worth stating plainly: a subsidised grid-tied solar system does not give you power during a power cut. Grid-tied inverters disconnect during an outage to protect line workers, a function called anti-islanding. If backup matters to you, you need storage, and storage is not part of this scheme.
FAQs
Who is eligible for the PM Surya Ghar subsidy?
Residential consumers with a valid electricity connection and rooftop rights, installing a grid-connected system with net metering, through a vendor empanelled on the PM Surya Ghar portal, using BIS-certified panels and grid-tied inverter. All four conditions must be met. Failing any one disqualifies the claim.
How much subsidy does PM Surya Ghar give?
Rs 30,000 per kW for the first 2 kW and Rs 18,000 for the third, capped at Rs 78,000. A 1 kW system receives Rs 30,000, 2 kW receives Rs 60,000, and 3 kW or larger receives Rs 78,000. There is no additional subsidy above 3 kW.
Is a solar battery covered under PM Surya Ghar?
No. The scheme subsidises generation capacity only. Battery storage is excluded in every configuration, including hybrid systems, where the panel capacity may qualify while the battery does not. If backup is your goal, budget for storage separately.
Can I get subsidy for an off-grid solar system?
No. Off-grid and standalone battery-based systems are explicitly outside the scheme, which requires grid connection and net metering. A panel charging a battery through a charge controller is off-grid by definition and does not qualify regardless of size or component quality.
Why do PM Surya Ghar applications get rejected?
Most commonly for using a vendor not empanelled on the portal, or for component substitution where the installed panel or inverter model differs from the BIS-certified model quoted. Starting installation before feasibility approval is the third common cause. All three are avoidable with checks before signing.
Will a subsidised solar system work during a power cut?
No, not on its own. Grid-tied inverters disconnect automatically during an outage to protect line workers, a safety function called anti-islanding. Producing power during a cut requires a hybrid inverter and a battery, neither of which is covered by the subsidy.
How long does the subsidy take to reach my account?
Typically weeks to months after commissioning and submission of the commissioning certificate, with substantial variation by state and DISCOM. You fund the entire system upfront regardless, so treat the subsidy as a reimbursement rather than a discount at purchase.
Is a 100W or 200W solar panel eligible for subsidy?
No. Small panels are almost always used in off-grid battery setups, which are excluded, and the scheme is structured around whole-rooftop systems of 1 kW and above with net metering. Buy small panels for the job they do well, which is providing power where there is no grid.
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