PM Surya Ghar Muft Bijli Yojana is the central government scheme for residential rooftop solar. Approved in February 2024 with an outlay of about ₹75,021 crore, it aims to put rooftop solar on one crore homes, with the scheme period running to FY 2026-27 (check for any extension before quoting commissioning after March 2027). It has transformed the residential market: subsidy, a single national portal, cheaper loans, and a list of registered vendors. For an installer, knowing the scheme thoroughly is basic competence.
Eligibility
A household can apply if: - it is an Indian household that owns a house with a suitable roof, - it has a valid electricity connection in its own name (residential category), - it has not received another rooftop solar subsidy for the same connection.
The system must be installed by a vendor registered for that DISCOM on the national portal, and must use DCR modules (modules made in India with Indian-made cells, under the Domestic Content Requirement) that are on the ALMM list. Inverters and other components must meet the applicable BIS and MNRE requirements.
Group housing societies and RWAs can apply for common facilities (lifts, lights, pumps) under a separate rate.
The central financial assistance (CFA)
Under the 2024 guidelines (check the current notification):
| Capacity | CFA |
|---|---|
| First 2 kW | ₹30,000 per kW |
| Third kW | ₹18,000 |
| Above 3 kW | No additional CFA; capped at ₹78,000 |
| RWA / GHS common facilities | ₹18,000 per kW, up to 500 kW (3 kW per house) |
Special-category states and UTs (the north-eastern and hill states, island UTs) receive higher rates: ₹33,000 per kW for the first 2 kW and ₹19,800 for the third, up to ₹85,800.
The CFA is calculated on the lower of the PV array kWp and the inverter kW. A 3.3 kWp array on a 3 kW inverter gets the CFA for 3 kW.
Guidance by consumption (from the scheme material):
| Average monthly units | Suggested system | CFA |
|---|---|---|
| 0–150 | 1–2 kW | ₹30,000–60,000 |
| 150–300 | 2–3 kW | ₹60,000–78,000 |
| Above 300 | Above 3 kW | ₹78,000 |
Worked example: 3 kW in Lucknow
- System price quoted: 3.3 kWp DCR array, 3 kW inverter, installed with net meter: ₹1,98,000 including GST
- CFA: 2 × 30,000 + 18,000 = ₹78,000 (on 3 kW, the inverter rating)
- UP state top-up (from our notes): ₹15,000 per kW, capped at ₹30,000, so ₹30,000 (check that the UPNEDA top-up is still open)
- Net cost to the customer: ₹1,98,000 − 78,000 − 30,000 = ₹90,000
The customer still pays the full ₹1,98,000 first (from savings or a loan). The subsidies are credited to the customer's bank account after commissioning.
The process, step by step
- Register on the national portal (pmsuryaghar.gov.in) with the state, DISCOM, consumer number, mobile and email. The customer can do this, or you can help, but the account belongs to the customer.
- Apply for rooftop solar and select a registered vendor.
- Feasibility approval from the DISCOM. Under the 2024 amendment to the consumer rights Rules, small systems (up to 10 kW) are treated as technically feasible, and the DISCOM has to process applications within set timelines; in practice, timelines vary.
- Install with DCR modules and the specified components. Take clear, geo-tagged photos as you go: they are needed for the portal.
- Upload installation details (module and inverter serial numbers, DCR certificate, photos) and apply for the net meter.
- Net meter installation and inspection by the DISCOM.
- Commissioning certificate generated on the portal.
- Bank details and a cancelled cheque submitted by the customer; the CFA is credited to the customer's account, typically within a few weeks of a complete submission.
Loans
Public-sector banks offer concessional, collateral-free loans for systems up to 3 kW, with the interest rate linked to the RBI repo rate (the 2024 guidelines set it at repo plus 0.5%, about 7% at the time; check current bank rates). Loans are applied for through the portal or the bank. Larger systems can be financed at the bank's normal rates. Banks usually pay the vendor in stages, so align your payment terms (module 10, lesson 3).
What the vendor must provide
Registered vendors commit to standards set by MNRE and the DISCOM, including: - DCR, ALMM-listed modules and compliant inverters - Installation to the technical specifications, with earthing and protection - A comprehensive maintenance contract (CMC) for five years from commissioning, as part of the scheme - Accurate portal uploads; false documentation can lead to the vendor being debarred and the CFA being withheld
Mistakes that delay or cancel subsidy
- Non-DCR modules or a missing DCR certificate. There is no CFA without DCR.
- Name mismatch between the electricity connection, the house ownership and the bank account. Fix the name on the electricity bill before you start.
- Commercial or shared connection. A shop meter or a tenant's connection does not qualify as residential.
- Inverter smaller than intended: the CFA follows the lower of kWp and inverter kW.
- Photos missing or not geo-tagged, or serial numbers that do not match the installed equipment.
- Starting work before feasibility approval.
Key points
- PM Surya Ghar gives ₹30,000/kW for the first 2 kW and ₹18,000 for the third, capped at ₹78,000 (higher in special-category states); check the current notification.
- CFA is based on the lower of array kWp and inverter kW; DCR modules and a registered vendor are mandatory.
- The customer pays the full price first; CFA (and any state top-up) goes to their bank account after commissioning.
- DISCOM steps (feasibility, net meter, inspection) drive the timeline.
- Most delays are document problems: names, DCR certificates, serial numbers and photos.
Check yourself
- A 2.5 kWp array on a 3 kW inverter: what CFA applies?
- What is the CFA for a 5 kW system in a non-special-category state?
- Name three documents or details that should match before installation.
Answers
- The lower of 2.5 kWp and 3 kW is 2.5 kW: 2 × 30,000 + 0.5 × 18,000 = ₹69,000.
- ₹78,000: the CFA is capped at 3 kW.
- Any three of: name on the electricity connection, property ownership, bank account name, Aadhaar, consumer number on the portal, and installed serial numbers vs uploaded ones.