What if the government offered to pay for half your solar panels and guaranteed you free electricity for 25 years? For nearly 2.4 million Indian households, this isn't a hypothetical—it's the reality of the PM Surya Ghar: Muft Bijli Yojana. Yet, despite record-breaking adoption, millions of eligible homeowners still haven't claimed their share of this transformative scheme.
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.
- For a 2 kW system: You receive ₹30,000 per kW, totaling ₹60,000 in subsidy.
- For a 3 kW system: You receive ₹60,000 for the first 2 kW plus an additional ₹18,000 for the third kilowatt, bringing your total subsidy to ₹78,000.
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 ₹1.5 lakh—far more affordable at approximately ₹72,000.
Zero-Collateral Solar Loans at 6% Interest
To bridge the remaining cost, the government has partnered with nationalized banks to offer unprecedented financing terms. These are collateral-free loans at a concessional interest rate of just 6% per annum with a comfortable 10-year repayment period. 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.
Compare SBI vs Canara vs Union Bank Interest Rates (2025 List) →
How to Apply: A 5-Step Process
The application process is centralized through a national portal to ensure transparency and efficiency.
- Register Online: Visit pmsuryaghar.gov.in and register using your mobile number and electricity consumer number from your latest bill.
- Submit Application: Log in and fill out the rooftop solar application, specifying your desired system capacity (2 kW or 3 kW).
- Feasibility Approval: Your local DISCOM (power distribution company) will verify your application and conduct a technical feasibility check for your roof.
- Installation: Choose from the list of empaneled vendors to install your solar plant. Ensure they use ALMM-approved panels for quality assurance.
- Inspection and Subsidy: After installation, submit the plant details and apply for net metering. Once inspected and commissioned, the subsidy is transferred directly to your bank account within 30 days.
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 2.4 million households already benefiting and the target set at 10 million, the PM Surya Ghar Yojana represents a limited-window opportunity. The combination of high subsidies, low-interest loans, and rising electricity tariffs makes 2025 the ideal time to switch to solar.
About the Author
R-Solar Editorial Team
R-Solar is India's leading solar platform, dedicated to simplifying the transition to renewable energy for homeowners and businesses across Madhya Pradesh.