Rooftop Solar Subsidy in India Eligibility Benefits and Application Process

Key Takeaways

• Rooftop solar subsidy in India is mainly provided through the PM Surya Ghar Muft Bijli Yojana.
• Eligible residential households can receive Central Financial Assistance of up to Rs 78,000.
• The subsidy is linked to rooftop solar capacity and is subject to scheme and DISCOM requirements.
• The application, installation, inspection and subsidy process is managed through the national portal and the concerned electricity distribution company.

Introduction

Imagine using your own rooftop to generate electricity during the day instead of depending entirely on the grid. For many Indian households, rooftop solar is becoming a practical way to reduce electricity expenses while using a cleaner source of energy.

The Government of India supports residential rooftop solar through the PM Surya Ghar Muft Bijli Yojana. The scheme aims to encourage rooftop solar adoption among households and has a target of installing rooftop solar systems in one crore homes. The approved scheme has a total financial outlay of Rs 75,021 crore.

But how much subsidy can you actually receive? Who is eligible? And what is the application process?

Here is a simple guide to help you understand rooftop solar subsidy in India.

What is the rooftop solar subsidy scheme in India

The PM Surya Ghar Muft Bijli Yojana provides Central Financial Assistance to eligible residential consumers installing grid connected rooftop solar systems.

The subsidy structure provides 60 percent of the applicable benchmark cost for the first 2 kW and 40 percent for an additional 1 kW. There is no additional Central Financial Assistance beyond 3 kW for an individual residential installation.

In practical terms, the commonly stated subsidy structure is as follows.

The subsidy is intended to reduce the upfront cost of installing a rooftop solar system. The actual installation cost can vary depending on the system size, vendor, location, equipment and other applicable charges.

Who is eligible for rooftop solar subsidy

Eligibility is one of the first things you should check before applying.

The scheme is intended for residential consumers with a grid-connected electricity connection. The rooftop solar system must be associated with the residential electricity connection and installed on an eligible rooftop or other permitted residential structure.

The key requirements include

You should have a residential electricity connection

The rooftop solar installation needs to be connected to the relevant electricity distribution company or DISCOM.

Your property should have a suitable rooftop

The roof or permitted installation area should be suitable for installing a solar system. Structural suitability and available sunlight are important considerations.

The installation must meet scheme requirements

The solar system must comply with the applicable technical requirements. Current scheme guidelines also specify domestic content requirements for modules used for installations seeking Central Financial Assistance.

The installation must follow the approved process

The application is processed through the PM Surya Ghar National Portal and the concerned DISCOM. Installation, inspection, metering and commissioning form part of the subsidy process.

It is also important to check the latest requirements applicable to your electricity distribution area because procedures can vary by state and DISCOM.

What are the benefits of installing rooftop solar

The subsidy is only one part of the benefit. A rooftop solar system can also change how a household manages its electricity consumption.

Lower electricity expenses

Solar generation can reduce the amount of electricity that a household needs to purchase from the grid. The actual saving depends on factors such as system capacity, sunlight, household consumption and applicable electricity tariffs.

Better use of rooftop space

A rooftop that otherwise remains unused can become a source of electricity without requiring separate land for the installation.

Potential benefit from surplus generation

Under applicable metering arrangements, surplus electricity may be exported to the grid. The exact treatment of surplus generation depends on the applicable state regulations and DISCOM arrangements.

Reduced dependence on conventional electricity

Generating electricity from sunlight can reduce dependence on grid-supplied power and support the wider transition towards renewable energy.

Long-term environmental benefits

The PM Surya Ghar programme is expected to add significant residential rooftop solar capacity and reduce carbon emissions over the lifetime of the installed systems.

How to apply for rooftop solar subsidy

The application process is primarily digital, although the concerned DISCOM plays an important role in feasibility approval, inspection and metering.

Register on the national portal

Start by visiting the official PM Surya Ghar National Portal. You need to provide details such as your state, electricity distribution company, consumer number, mobile number and email address.

Submit the rooftop solar application

Log in using the required consumer details and submit the application for rooftop solar installation.

Wait for DISCOM feasibility approval

The concerned DISCOM checks the application and determines whether the proposed installation can proceed under the applicable technical and grid requirements.

Select an eligible vendor

After the required approval, select a vendor through the scheme's approved process and proceed with installation.

Complete installation and metering

Once the rooftop solar system is installed, the required plant details are submitted. The DISCOM then carries out the necessary inspection and completes the applicable metering and commissioning process.

Submit bank account details

After commissioning and verification, the required bank account information and supporting proof are submitted through the portal. The Central Financial Assistance is then processed according to the applicable scheme procedure.

How much solar capacity should you install

The right system size depends largely on your electricity consumption.

For example, households using around 0 to 150 units a month may typically consider a 1 to 2 kW system. Those consuming around 150 to 300 units may consider around 2 to 3 kW. Higher consumption can require a larger system, although the individual household subsidy remains capped at 3 kW under the Central Financial Assistance structure.

Before choosing a capacity, look at your recent electricity bills, available rooftop space and expected future consumption. A larger system is not automatically the better choice if your household cannot make effective use of the additional generation.

Can you finance rooftop solar installation

The initial cost of solar installation can still be significant even after considering the subsidy. This is where suitable financing can make the investment easier to manage.

Bank of Maharashtra offers the Mahabank Rooftop Solar Panel Loan Scheme under PM Suryaghar: Muft Bijli Yojana to finance the installation of grid-connected rooftop solar systems for residential properties. The loan amount can go up to ₹10 lakh for eligible rooftop solar installations above 3 kW and up to 10 kW.

If you are considering financing, compare the loan amount, interest rate, repayment period and total repayment obligation with the expected electricity savings. The subsidy should also be considered while calculating the amount you actually need to finance.

Common mistakes to avoid

• Do not select a solar system size only because it offers a higher subsidy.
• Do not begin installation without following the required portal and DISCOM process.
• Do not rely on unverified vendors claiming to provide guaranteed subsidy approval.
• Do not overlook technical requirements or metering procedures.
• Do not assume that the same process will apply identically in every state. Your DISCOM requirements should always be checked before installation.

Frequently Asked Questions

1.What is the maximum rooftop solar subsidy in India

Under the PM Surya Ghar Muft Bijli Yojana, the Central Financial Assistance for an individual residential rooftop solar installation is capped at Rs 78,000 for systems of 3 kW and above.

2.Who can apply for PM Surya Ghar subsidy

The scheme is intended for eligible residential electricity consumers with a suitable rooftop and an eligible grid-connected residential electricity connection. The installation must also satisfy the applicable technical and scheme requirements.

3.Is the rooftop solar subsidy available for systems above 3 kW

Yes, a household can install a system above 3 kW subject to applicable requirements, but the individual residential Central Financial Assistance does not increase beyond the 3 kW subsidy limit.

4.How do I apply for rooftop solar subsidy

You can begin through the PM Surya Ghar National Portal. The process involves registration, application submission, DISCOM feasibility approval, vendor selection, installation, metering, inspection and commissioning, followed by submission of the required bank account details for subsidy processing.

5.Can rooftop solar reduce my electricity bill

Yes. Solar electricity generated for household use can reduce the amount of electricity purchased from the grid. The actual savings depend on your consumption, solar generation, system capacity, tariffs and applicable metering arrangement.

6.Can I get financing for rooftop solar installation

Yes. Bank of Maharashtra offers the Mahabank Rooftop Solar Panel Loan Scheme under PM Suryaghar: Muft Bijli Yojana for eligible individuals installing grid-connected rooftop solar systems at residential properties. The scheme provides loans from ₹10,000 up to ₹2 lakh for installations up to 3 kW and up to ₹10 lakh for installations above 3 kW and up to 10 kW, subject to the applicable eligibility criteria, margin and other terms. Customers should check the latest scheme conditions and required documents before applying.

Conclusion

Rooftop solar can be a practical investment for households looking to manage electricity expenses while making greater use of renewable energy. The PM Surya Ghar Muft Bijli Yojana reduces the initial burden through Central Financial Assistance of up to Rs 78,000 for eligible residential installations. The most important step is to follow the official application, vendor, DISCOM and commissioning process carefully.

For households that need financial support for the remaining installation cost, Bank of Maharashtra also offers financing under the PM Surya Ghar Yojana. This gives homeowners another option to consider when planning their transition to rooftop solar, while keeping the overall investment and repayment capacity in mind.

Author: Bank of Maharashtra
Date of Publish: 05 Sep, 2026