Government Subsidy on Rooftop Solar in India

Government Subsidy on Rooftop Solar in India

Solar energy is becoming increasingly popular in India as people look for ways to reduce electricity bills and adopt clean energy solutions. To encourage rooftop solar adoption, the Government of India launched the PM Surya Ghar Yojana, which provides financial assistance to residential consumers installing rooftop solar systems.
This scheme helps homeowners reduce installation costs and enjoy long-term savings through clean and renewable energy.

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What is PM Surya Ghar Yojana?
PM Surya Ghar: Muft Bijli Yojana is a central government scheme launched to promote rooftop solar systems in residential homes across India.
The main goals of the scheme are:

• Reduce household electricity bills

• Promote renewable energy adoption

• Provide up to 300 units of free electricity

• Support India’s clean energy mission

The government aims to install rooftop solar systems in millions of homes under this initiative.

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Exact Central Subsidy Amount (Applicable Across India)
The subsidy under PM Surya Ghar Yojana is fixed for all states in India, including North and Mid-Indian states like Rajasthan, Uttar Pradesh, Delhi, Haryana, Punjab, Madhya Pradesh, Bihar, and Chhattisgarh.

Solar System Size	Central Subsidy Amount
1kW	₹30,000
2kW	₹60,000
3kW and Above	₹78,000 (Maximum)

The subsidy is directly transferred to the consumer’s bank account after successful installation and inspection.

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Additional State Subsidy Benefits
Some states may provide additional incentives along with the central subsidy.
Examples of Additional State Benefits:

• Delhi may offer extra state incentives under state solar policies

• Uttar Pradesh has additional promotional support in some cases

• Gujarat and Rajasthan actively support rooftop solar adoption

However, the main PM Surya Ghar subsidy remains the same nationwide.

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Eligibility Criteria for Rooftop Solar Subsidy
To apply for the subsidy, applicants must fulfill these conditions:

• Must be an Indian citizen

• Must own a residential property

• Should have a valid electricity connection

• Rooftop should be suitable for solar installation

• Solar system must be installed through an approved vendor

Commercial and industrial properties are generally not eligible for residential subsidy benefits.

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Step-by-Step Subsidy Process
Step 1: Online Registration
Register on the official rooftop solar portal.
Step 2: Choose Approved Vendor
Select a government-approved solar EPC company for installation.
Step 3: Rooftop Solar Installation
The vendor installs the solar system according to government standards.
Step 4: Net Metering & Inspection
The electricity department verifies the installation and installs a net meter.
Step 5: Subsidy Transfer
After approval, the subsidy amount is transferred directly to the consumer’s bank account through DBT (Direct Benefit Transfer).

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Documents Required
Common documents required include:

• Aadhaar card

• Electricity bill

• Bank account details

• Property documents

• Passport-size photograph

• PAN card

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Approximate Cost After Subsidy

System Size	Approximate Cost Before Subsidy	Subsidy	Estimated Final Cost
1kW	₹65,000 – ₹90,000	₹30,000	₹35,000 – ₹60,000
2kW	₹1.2 – ₹1.5 lakh	₹60,000	₹60,000 – ₹90,000
3kW	₹1.8 – ₹2.5 lakh	₹78,000	₹1 – ₹1.7 lakh
5kW	₹2.8 – ₹4 lakh	₹78,000	₹2 – ₹3.2 lakh

Approximate costs vary depending on panel quality, inverter brand, installation type, and location.

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Benefits of Rooftop Solar

• Huge reduction in electricity bills

• Long-term savings for 20–25 years

• Low maintenance cost

• Environment-friendly energy

• Increased property value

• Energy independence