Tired of paying high electricity bills every month?
What if the government could help you cut them down almost to zero?
That’s exactly what the PM Surya Ghar: Muft Bijli Yojana 2026 makes possible. The Indian government is actively subsidising rooftop solar installations for homeowners across the country covering up to ₹78,000 of your installation cost. This isn’t just a financial benefit. It’s a long-term push towards energy independence, lower bills, and a cleaner future for every Indian household.
What Are Solar Panel Subsidies?
Solar panel subsidies are financial incentives provided by the government through the Ministry of New and Renewable Energy (MNRE) to make solar installations affordable for everyday homeowners. Instead of paying the full cost upfront, eligible homeowners receive a direct cash benefit transferred straight to their bank account. The goal is simple: make solar accessible to every Indian home, reduce dependence on fossil fuels, and move the country closer to its 2030 renewable energy targets.
Overview of PM Surya Ghar: Muft Bijli Yojana
PM Surya Ghar: Muft Bijli Yojana was announced on January 22, 2024, and officially launched on February 13, 2024, by Prime Minister Narendra Modi, with a total budget allocation of ₹75,021 crore. It is administered by the Ministry of New and Renewable Energy (MNRE) and is recognized as the world’s largest domestic rooftop solar initiative, with a bold vision to supply solar power to one crore households by March 2027.
The core goal of the scheme is to make solar energy accessible to poor and middle-class families across India. Each beneficiary household is entitled to up to 300 units of free electricity per month, and households can save up to ₹18,000 annually on electricity bills. The scheme is also expected to save the government ₹75,000 crore annually in electricity costs.
Key Highlights at a Glance:
| Feature | Details |
| Scheme Name | PM Surya Ghar: Muft Bijli Yojana |
| Launched By | Prime Minister Narendra Modi |
| Launch Date | February 13, 2024 |
| Nodal Ministry | MNRE |
| Total Budget | ₹75,021 Crore |
| Target Households | 1 Crore by March 2027 |
| Free Electricity | Up to 300 units/month |
| Annual Savings | Up to ₹18,000 per household |
| Official Portal | pmsuryaghar.gov.in |
Since its launch in February 2024, the scheme has added 9,566.89 MW of rooftop solar capacity across India as of March 2026, and is expected to create approximately 17 lakh jobs in manufacturing, logistics, supply chain, installation, and financial services.
The subsidy is provided through the Direct Benefit Transfer (DBT) model meaning the money is credited directly into the homeowner’s bank account after installation, DISCOM inspection, and net meter commissioning. The scheme operates through DISCOM-registered empanelled vendors listed on the national portal, and beneficiaries must choose installers from this portal-approved list to maintain their subsidy eligibility.
How Much Solar Subsidy in India?
The total solar subsidy you can receive in India in 2026 depends on two factors: the central government CFA and any additional state-level top-up your state offers. In the best cases, these can be stacked together.
Central Subsidy (Available to All States):
Under the 2026 subsidy structure, a 1 kW system gets up to ₹30,000, a 2 kW system gets up to ₹60,000, and a 3 kW system gets up to ₹78,000, the maximum central subsidy available.
Total Subsidy Potential (Central + State Combined):
| Location | Central Subsidy (3 kW) | State Top-Up | Total Possible Subsidy |
| Gujarat | ₹78,000 | ₹40,000 | ~₹1,18,000 |
| Maharashtra | ₹78,000 | Up to 40% of system cost | Up to ₹1,30,000+ |
| Rajasthan | ₹78,000 | ₹8,000/kW (₹24,000) | ~₹1,02,000 |
| Uttar Pradesh (SC/ST) | ₹78,000 | ₹15,000 | ~₹93,000 |
| Kerala | ₹78,000 | ₹5,000 (women-owned homes) | ~₹83,000 |
| Tamil Nadu | ₹78,000 | Zero net meter fees | ₹78,000 + savings |
| Karnataka | ₹78,000 | Society-level benefits | ₹78,000+ |
| Other States | ₹78,000 | Central CFA only | ₹78,000 |
The subsidy covers 40–60% of what you would normally pay. A solar system that costs ₹1,80,000 becomes ₹1,02,000 after the central subsidy a significant saving that makes solar genuinely affordable for most Indian households.
For the average Indian homeowner, solar energy now offers a genuine return on investment within 4–6 years, and up to 300 units of free electricity every month after that.
Solar Panel Subsidy in India 2026: Steps to Avail Benefits
The Indian government, through the Ministry of New and Renewable Energy (MNRE), offers the PM Surya Ghar: Muft Bijli Yojana a fully online, streamlined subsidy process for residential rooftop solar installations across India.
Here’s how to apply step by step:
Step 1: Download the Sandes App
Download the Sandes App and search for “National Portal for Rooftop Solar” within the app. Select your respective state DISCOM to begin registration.
Step 2: Register on the Portal
Visit pmsuryaghar.gov.in, click “Apply Now” under the Consumer tab, and register using your mobile number, electricity consumer number, and email ID. Complete OTP and email verification to activate your account.
Step 3: Fill & Submit Application
Enter your personal details, property address, rooftop specifications, and preferred system capacity. Upload scanned copies of Aadhaar, electricity bill, bank details, and property proof.
Step 4: Receive DISCOM Feasibility Approval
Your local DISCOM reviews the technical feasibility of your rooftop. Approval is communicated via your registered email ID.
Step 5: Select an MNRE-Approved Vendor
Choose an MNRE-empanelled, DISCOM-approved installer from the portal’s verified vendor list. Subsidy is only valid for installations done by approved vendors.
Step 6: Complete Solar Panel Installation
Once installation is done, submit the work completion report along with a net meter installation request through the portal.
Step 7: DISCOM Inspection & Commissioning
DISCOM inspects the installed system and issues a commissioning certificate upon successful verification.
Step 8: Submit Bank Details & Receive Subsidy
Submit your bank account details and a cancelled cheque. The subsidy amount up to ₹78,000 is transferred directly to your account via Direct Benefit Transfer (DBT).
Companies like Freyr Energy assist homeowners throughout this process, ensuring a hassle-free experience.
Subsidy Structure
One of the most common questions homeowners ask is: how much subsidy will I actually receive?
The answer depends on the size of the solar system you install. The scheme provides a subsidy of 60% of system cost for systems up to 2 kW, and 40% of the additional cost for systems between 2 kW and 3 kW capacity. The subsidy is capped at 3 kW capacity.
The Central Financial Assistance (CFA) rate was increased by 23% in January 2026, from ₹14,588/kWp to ₹18,000/kWp, making solar installations even more affordable.
Central Government Subsidy Table (CFA – 2026):
| System Capacity | Subsidy Rate | Total Central Subsidy | Free Units/Month (Approx.) |
| 1 kW | 60% of system cost | ₹30,000 | ~100 units |
| 2 kW | 60% of system cost | ₹60,000 | ~200 units |
| 3 kW | 60% for first 2kW + 40% for remaining 1kW | ₹78,000 | Up to 300 units |
| Above 3 kW | No additional central subsidy | Capped at ₹78,000 | Varies |
Note: The central subsidy is capped at ₹78,000 regardless of system size beyond 3 kW. Applicants should verify the latest MNRE guidelines before applying, as rates are subject to revision.
And also check this 1 kW vs 2 kW vs 3 kW – Which Solar System Size Is Right for You?
Loan Facility Available: In addition to the subsidy, collateral-free loans are available at subsidised interest rates SBI Surya Shakti Loan offers up to ₹2 lakh at 7% interest for a 10-year tenure, and PNB Solar Power Loan offers up to ₹5 lakh at 8.5% interest for a 7-year tenure.
Important (From June 2026): Only solar modules listed on the ALMM (Approved List of Models and Manufacturers) List-II are eligible for government subsidies. Ensure your installer uses ALMM-listed panels non-compliant panels will not qualify for PM Surya Ghar or state subsidies.
State-Wise Solar Subsidy in India 2026
Every Indian homeowner is eligible for the central PM Surya Ghar CFA subsidy of up to ₹78,000. In addition to this, many states offer their own top-up incentives. Here is a complete state-wise breakdown:
India offers solar subsidies at two levels to the central government through PM Surya Ghar and state-specific schemes. In many states, you can stack both subsidies to bring your installation cost down by 50–70%.
- Gujarat Gujarat leads with its Surya Urja Rooftop Yojana (SURYA Gujarat), which provides an additional ₹40,000 subsidy for residential consumers, on top of the central assistance. Gujarat is India’s #1 state in solar adoption with over 11 lakh installations. PGVCL also covers net metering costs for consumers.
- Maharashtra Maharashtra launched the SMART Solar Scheme, offering an additional 40% subsidy for low-consumption homes (under 100 units/month), BPL, and SC/ST households. MSEDCL group net metering allows housing societies to share solar generation across multiple flats from a single installation. Rural households with 1–3 kW systems also receive ₹6,000/kW additional subsidy.
- Rajasthan Rajasthan offers ₹8,000/kW additional state subsidy along with an expedited 15-day approval process. The state follows the Rajasthan Solar Energy Policy and allows net metering up to 1 MW. Rajasthan is among the top-performing states nationally under the PM Surya Ghar scheme.
- Tamil Nadu – Tamil Nadu’s TANGEDCO reduces the net meter installation fee to ₹0 for solar systems below 5 kW. While Tamil Nadu does not stack a separate state subsidy on top of the central CFA as of 2026, TEDA (Tamil Nadu Energy Development Agency) coordinates fast approvals and the state has a well-developed solar installation ecosystem. Tamil Nadu has the highest installed rooftop solar capacity in India.
- Kerala – KSEB (Kerala State Electricity Board) provides a free technical site inspection and an additional ₹5,000 subsidy for women-owned homes. Kerala also offers its own separate solar subsidy schemes that are time-bound and based on availability. Net metering is actively supported across the state.
- Karnataka – Karnataka’s BESCOM empanels over 500 solar vendors and offers additional subsidy for cooperative housing societies. BESCOM net metering export rate stands at ₹3.57/unit one of the best rates in India. Virtual Net Metering (VNM) allows housing societies to share solar generation across multiple flats from one installation.
- Uttar Pradesh – UPNEDA (Uttar Pradesh New and Renewable Energy Development Agency) provides an additional ₹15,000 incentive specifically for SC/ST households, over and above the central subsidy.
- Delhi – Solar benefits in Delhi are provided by BSES Rajdhani and BYPL (BSES Yamuna) in the form of group net metering for apartments and housing societies, along with solar rebates. Delhi is among the states that offer additional incentives under select programs.
- Haryana & Punjab – Haryana and Punjab offer state DISCOM-level discounts, faster approvals, and priority net metering, with special exceptions for farmers and domestic consumers.
- Andhra Pradesh & Telangana – Both states primarily follow the central PM Surya Ghar CFA structure. Telangana offers subsidized solar power systems for households and farmers, while Andhra Pradesh provides incentives up to 40% for residential, commercial, and agricultural sectors.
- West Bengal – West Bengal provides a 30% subsidy for grid-connected solar power systems, in addition to the central scheme benefits.
- Odisha, Jharkhand & Chhattisgarh – Odisha supports solar rooftop installations with government rebates and incentives. Jharkhand offers solar incentives to make adoption easier for both rural and urban areas. Chhattisgarh encourages solar installations with financial aid for residential and agricultural consumers.
- Assam & North-East States – In North-Eastern States, Ladakh, Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Lakshadweep, and Andaman & Nicobar Islands, consumers can get up to 50% government subsidy for off-grid and grid-connected solar systems a higher rate than the standard national subsidy, recognizing the infrastructure challenges in these regions.
Check this also 5kW Solar Panel Price with Subsidy in India
Important Note: State subsidies are often time-bound and subject to budget availability. Always verify the latest details with your state DISCOM or energy department portal before applying. The central PM Surya Ghar subsidy of up to ₹78,000 remains available to all eligible homeowners across India until March 31, 2026.
Eligibility Criteria for the National Rooftop Solar Scheme 2024
To qualify for PM Surya Ghar: Muft Bijli Yojana 2026, applicants must meet the following requirements:
- Be a permanent Indian citizen aged 18 years or older
- Own a residential property with a suitable, sunlit rooftop
- Have a valid electricity connection in your name from your local DISCOM
- Install the system through an MNRE-empanelled vendor only
- The property must not have previously availed any solar subsidy
- Maximum eligible capacity for subsidy is 10 kW
- Aadhaar card (name must match electricity bill)
- Latest electricity bill (not older than 6 months)
- PAN card
- Bank passbook or cancelled cheque (for Direct Benefit Transfer)
- Property ownership proof (only if electricity bill is not in your name)
- Passport-size photograph
- Aadhaar-linked mobile number
Benefits of Solar Systems for Homes in India
The solar subsidy in India is part of the government’s broader plan to promote clean energy and reduce dependence on conventional power sources. Initiatives like the PM Surya Ghar Yojana enable homeowners to install solar panels at reduced costs. The subsidy accounts for a significant percentage of installation expenses, making solar energy a budget-friendly and eco-conscious choice.
Central Financial Assistance (CFA) Subsidy Increase
As of January 2026, the government increased the CFA subsidy rate by 23% from ₹14,588/kWp to ₹18,000/kWp making rooftop solar more affordable than ever for Indian homeowners. The Union Budget 2026–27 further boosted this push with a ₹22,000 crore allocation for PM Surya Ghar, up from ₹20,000 crore the previous year.
With a maximum central subsidy of ₹78,000 for systems of 3kW and above, the payback period for most homeowners has now reduced to just 3–5 years.
Conclusion – Is Solar Subsidy Still Available in India?
The central government’s rooftop solar subsidy programme ran through March 31, 2026 under its original extension timeline. However, the broader PM Surya Ghar: Muft Bijli Yojana launched in February 2024 with a ₹75,021 crore outlay continues as an ongoing long-term scheme with no fixed end date announced for new applicants.
If you missed the earlier deadline, you can still re-apply on the PM Surya Ghar portal. MNRE has clearly stated that deleted or lapsed applications are eligible to re-apply under the scheme in the future. The government’s commitment to installing rooftop solar in 1 crore Indian homes remains active which means subsidies, net metering support, and CFA benefits are still accessible for eligible residential consumers who act now.
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