PM Surya Ghar subsidy 2026: the ₹78,000 scheme explained

PM Surya Ghar: Muft Bijli Yojana provides a central government subsidy of up to ₹78,000 for eligible homeowners installing rooftop solar in India. Launched in February 2024 and targeting 1 crore households, the scheme covers up to 60% of the system cost for a 2 kW installation, with 300 units of free electricity every month once live. More than 40 lakh households had benefited by June 2026, yet millions of eligible homeowners in Madhya Pradesh still haven't claimed their subsidy.

What is the PM Surya Ghar Yojana?

Launched in February 2024, the PM Surya Ghar: Muft Bijli Yojana is India's most ambitious residential solar initiative, targeting 1 crore (10 million) households. The scheme's promise is straightforward: help families install rooftop solar systems to generate their own power and receive up to 300 units of free electricity every month. By achieving this milestone, the average Indian household can slash their electricity bill to zero while contributing to the nation's clean energy goals.

Your financial breakdown: how the ₹78,000 subsidy works

The scheme's centerpiece is a direct bank transfer subsidy that dramatically reduces your upfront investment.

This subsidy is credited directly to your bank account after installation and inspection, making the net cost of a 3 kW system (typically priced around ₹1.91 lakh) far more affordable at approximately ₹1,13,000.

Subsidy amount by system size (1 kW, 2 kW, 3 kW)

The subsidy scales with system size up to 3 kW, then plateaus. Here is exactly what you receive for each common residential capacity:

Why the subsidy caps at ₹78,000: the scheme is designed to make residential rooftop affordable for the average household, not to subsidise large systems. The first 2 kW are subsidised at ₹30,000 per kW, the third kW at ₹18,000 (additional), and any capacity beyond 3 kW receives zero additional subsidy. A 5 kW system gets the same ₹78,000 as a 3 kW system. The extra 2 kW comes out of your pocket or via a PM Surya Ghar bank loan.

For most Indian households consuming 200–400 units per month, a 3 kW system is the most cost-effective choice. It captures the maximum subsidy, generates roughly 360–400 units per month in most states (well within the 300 free units target), and pays back in 4–6 years. For a detailed cost-by-size breakdown, see solar panel installation cost in India.

Eligibility and required documents

The scheme is open to any Indian household that meets the following conditions:

• Indian citizenship with valid government ID (Aadhaar)
• A valid electricity connection in the applicant's name (or the property owner's name with consent)
• Owned property with a clear roof suitable for solar installation (typically 100–300 sq ft for a 3 kW system)
• No prior solar subsidy claim on the same property, one subsidy per property, not per applicant
• System size between 1 kW and 10 kW (the subsidy maximum is reached at 3 kW)

Documents required at the application stage on the national portal at pmsuryaghar.gov.in:

1. Latest electricity bill (within the last 3 months), used to verify your consumer number and DISCOM
2. Aadhaar card of the applicant (linked to mobile number for OTP verification)
3. PAN card (required for subsidies above ₹50,000)
4. Bank account details (passbook or cancelled cheque), the subsidy is credited directly to this account
5. Property ownership proof (sale deed, property tax receipt, or municipal certificate)
6. Recent photograph of the applicant
7. Installer quotation (after empanelled vendor selection)

For rental properties, the property owner must apply or provide a notarised no-objection certificate. Apartment complexes require resident welfare association (RWA) approval and a separate process. Most DISCOMs treat these as commercial connections rather than residential.

How to apply: a 5-step process

The application process is centralised through a national portal to ensure transparency and efficiency.

New to the portal? Our PM Surya Ghar Yojana login and online application guide walks you through registration, OTP verification, and the consumer-number lookup step by step.

Is there a last date for PM Surya Ghar?

Short answer: no official last date has been announced. The Union Cabinet approved PM Surya Ghar: Muft Bijli Yojana on 29 February 2024 with an outlay of ₹75,021 crore to put rooftop solar on 1 crore homes. In June 2026 MNRE reported more than 33 lakh rooftop systems installed (as of May 2026) and more than 40 lakh beneficiary households, with a goal of 75 lakh households by December 2026. The scheme is still running, so the subsidy is available today.

Treat any website quoting a firm “last date” as unofficial unless it links to an MNRE or PIB notice. The date that does matter in 2026 is a panel rule, not a subsidy deadline: net-metered systems commissioned from 1 January 2027 must also use solar cells from ALMM List-II, on top of the DCR and ALMM List-I conditions the subsidy already requires. Our ALMM List-II guide explains what changes.

Sources: PIB, Cabinet approval, 29 February 2024 (opens in a new tab) and PIB, MNRE, 4 June 2026 (opens in a new tab).

PM Surya Ghar in Madhya Pradesh (“MP Surya Ghar”)

“MP Surya Ghar” is not a separate scheme. It is the same central PM Surya Ghar subsidy, applied for on the national portal (pmsuryaghar.gov.in) and carried out in Madhya Pradesh by the three state DISCOMs: East (Jabalpur), Central (Bhopal), and West (Indore). We found no state top-up subsidy for residential rooftop solar in MP for 2026, so the most a home can receive is the central ₹78,000.

What is specific to MP is the grid connection. Net metering follows MPERC's RG-39(II) regulations: surplus units carry forward and unused units are paid out once a year, and the ₹1,000 net metering processing fee is waived for PM Surya Ghar applicants. See our MP net metering guide for the approval timelines and meter rules.

Why PM Surya Ghar applications get rejected

Applications most often stall or get rejected at the DISCOM inspection or subsidy disbursement stage. Most rejections trace back to a small number of preventable issues. If your installer doesn't actively manage these, the subsidy money does not arrive.

1. Non-ALMM panels. By far the most common rejection cause. MNRE's Approved List of Models and Manufacturers (ALMM) changes regularly. A panel compliant six months ago may have been delisted. The DISCOM inspector cross-checks every panel serial number; one non-ALMM panel rejects the entire subsidy claim. There is no partial credit.
2. Installer not MNRE-empanelled. Only installers registered as MNRE Channel Partners can file your application. Unregistered local contractors offering cheaper quotes cannot, even if they install a perfectly working system, the subsidy paperwork won't process.
3. Discrepancy between installed and approved capacity. If your DISCOM technical sanction was for 3 kW but the installer puts in 2.5 kW (to cut cost), the subsidy is calculated on the lower number, or rejected entirely if the deviation exceeds 10%.
4. Net metering not filed. The subsidy requires net metering to be operational at the time of inspection. If your installer doesn't file the net metering application alongside the subsidy claim, the inspection fails the grid-connection check.
5. Bank account mismatch. The bank account in the application must match the Aadhaar-linked account. If the account name has even a small variation (e.g., "Singh Rajesh" on Aadhaar vs "Rajesh Singh" on the bank statement), the direct credit attempt fails and the subsidy bounces back to the treasury.
6. Property ownership dispute. If the property has any pending dispute, undivided family ownership without consent, or unclear title, the application can be flagged at the DISCOM verification stage.
7. Multiple subsidy claims on one property. Each property can only claim the subsidy once. If a prior owner or co-applicant claimed it, the system flags and rejects the new application automatically.

If your application is rejected, you can re-apply once the issue is fixed, but this delays the subsidy by 60–90 days and may require re-doing parts of the installation (especially for ALMM issues). The right installer prevents most of these before they happen.

Zero-collateral solar loans at 5.75% interest

To bridge the remaining cost, the government has partnered with nationalised banks to offer unprecedented financing terms. These are collateral-free loans at 5.75% per annum for loans up to ₹2 lakh at SBI, Canara Bank, Bank of Baroda, PNB and Indian Bank (September 2026), with repayment over up to 10 years. This means your monthly loan EMI could be lower than your current electricity bill, allowing you to own your power source while paying less than you do now.

checklistCompare PM Surya Ghar bank loan rates (2026 list) →

Why this matters for your financial future

A 3 kW system in most Indian states generates approximately 360-400 units of electricity per month. If your consumption is within the 300-unit free limit, you pay nothing. Even if you consume more, you're only paying for the excess at standard rates. Over a 25-year lifespan, this translates to savings of ₹6-8 lakh, effectively turning your rooftop into a money-saving asset.

With more than 40 lakh households already benefiting and the scheme aiming for 1 crore, the PM Surya Ghar Yojana represents a limited-window opportunity. The combination of high subsidies, low-interest loans, and rising electricity tariffs makes 2026 a good time to switch to solar.

Frequently asked questions

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