PM Surya Ghar Muft Bijli Yojana 2026: Rooftop Solar Subsidy, Installation & Online Application

Electricity bills keep rising for most Indian households. The government's answer is the PM Surya Ghar Muft Bijli Yojana.

It was launched in February 2024 with a central outlay of nearly INR 75,000 crore. The scheme lets households generate their own power. It also promises up to 300 units of free electricity every month. As of mid-2026, more than 40 lakh homes have already gone solar. The pace is accelerating fast.

This article covers everything a homeowner needs to know before applying for PM Surya Ghar Muft Bijli Yojana. You'll find the latest subsidy slabs for 2026, and who qualifies. We explain the exact online application steps on the national portal.

What is PM Surya Ghar Muft Bijli Yojana? Overview and Key Objectives

The PM Surya Ghar Muft Bijli Yojana is the Government of India's flagship rooftop solar program. The Union Cabinet approved it on February 29, 2024. Its budget outlay is approximately INR 75,021 crore. The scheme's target is bold: solar panels on 1 crore rooftops by FY 2026-27. That's 10 million homes.

The core objectives are simple:

• Cut household electricity bills, ideally to zero, through self-generated solar power
• Deliver up to 300 units of free electricity per month for a 3 kW system
• Reduce India's dependence on coal-based power and lower carbon emissions
• Turn ordinary electricity consumers into "prosumers" who can sell surplus power back to the grid
• Boost domestic solar manufacturing and create jobs in installation and maintenance

India's rooftop solar market grew 125 percent year-over-year in early 2026, according to Mercom India Research. Residential installations alone made up 82 percent of all new capacity added. Cumulative grid-connected rooftop capacity crossed 30 GW by May 2026. That's up from 27.88 GW just months earlier. Maharashtra, Uttar Pradesh, and Gujarat led state-wise installations.

Raj Prabhu, CEO of Mercom Capital Group, has credited this growth to strong residential demand under the scheme. He has also cautioned that faster DISCOM approvals will matter more going forward. Financing access will also decide how quickly the segment scales. The daily numbers back this up too. Rooftop additions rose from around 5,000 systems a day in October 2025. By July 2026, that number crossed 16,000 a day.

Latest Central Subsidy Structure for Residential Rooftop Solar

The subsidy is calculated per kilowatt (kW) of installed capacity. It gets capped once a system crosses 3 kW. Here's the exact 2026 breakup:

• 1 kW system: INR 30,000 subsidy
• 2 kW system: INR 60,000 subsidy (INR 30,000 per kW for the first 2 kW)
• 3 kW to 10 kW system: Capped at a maximum central subsidy of INR 78,000. This is INR 60,000 for the first 2 kW, plus INR 18,000 for the third kW

Also Read: Why These 7 CleanTech Founders Are the Face of Green Transition

Housing Societies and Group Housing (GHS/RWA)

Group Housing Societies and Resident Welfare Associations get a separate slab. They receive INR 18,000 per kW for shared facilities, including EV charging points. This applies up to 500 kW total capacity. Each individual home within the society is capped at 3 kW.

State Top-Ups

Several states add their own incentive on top of the central subsidy. Gujarat, Maharashtra, Uttar Pradesh, Tamil Nadu, and Rajasthan currently offer extra support. This ranges from INR 10,000 to INR 40,000 per household. A Gujarat household could realistically cross INR 1,00,000 in combined subsidy for a 3 kW system.

Who is Eligible? Criteria for Homeowners and Housing Societies

Not every household qualifies automatically. The scheme's eligibility checklist includes:

• Applicant must be an Indian citizen with legal ownership of the property
• The house must have a valid, active electricity connection in the applicant's name
• The rooftop must have adequate shadow-free space for panel installation
• The applicant must not have already availed any other rooftop solar subsidy
• Sanctioned electricity load should generally be 10 kW or below for homes
• Both rural and urban households are eligible; there is no income limit

For Group Housing Societies, the RWA or society management applies on behalf of common areas. Per-unit capacity within the society stays capped at 3 kW for subsidy purposes.

Step-by-Step Online Application Process via the National Portal

The entire process runs throughone official website: pmsuryaghar.gov.in. This is the national portal for rooftop solar. Keep your electricity consumer number ready. You'll also need your Aadhaar-linked mobile number and bank details.

• Register on the portal: Sign up with your state, DISCOM name, and electricity consumer account number. Verify via OTP on your Aadhaar-linked mobile
• Await feasibility clearance: Your application goes to the local DISCOM. They check transformer capacity, feeder load, and grid availability. Approval typically takes 15–30 days
• Select an empaneled vendor: Choose a registered installer from the portal's state-wise list. Get a site survey and quotation
• Procure ALMM/DCR-certified equipment: Installation must use only panels from the MNRE's Approved List of Models and Manufacturers
• Complete installation: A residential system usually takes 1 to 3 days once materials arrive
• File for net meter installation: Submit the net metering request after construction. The DISCOM sends a technician to fit the bidirectional meter
• Upload commissioning report: The vendor uploads installation and commissioning proof to the portal
• Receive direct benefit transfer: Once the DISCOM inspection is accepted, the subsidy lands in your bank account. This usually happens within 30–45 days

Choosing an MNRE-Empaneled Vendor and ALMM-Certified Panels

Picking the right installer matters as much as picking the right panel brand. A vendor must be empaneled with both the national portal and your state DISCOM. Empanelment in one DISCOM zone doesn't automatically carry over to another.

Before finalising a vendor, check for:

• Valid registration on the PM Surya Ghar national portal (unregistered installers disqualify you from the subsidy)
• Panels listed on the current ALMM (Approved List of Models and Manufacturers). From June 1, 2026, cells must also come from an ALMM List-II manufacturer
• MNRE-compliant, BIS-certified grid-tied inverters with anti-islanding protection
• A track record of completed installations and after-sales support

Shreya Mishra, Co-founder and CEO of solar company SolarSquare, has spoken about this gap. Around 11,000–12,000 vendors are registered nationally under the scheme. But only 7,000–8,000 are actively operating. This uneven vendor quality is exactly why homeowners should verify empanelment status directly on the portal. Don't just take a salesperson's word for it.

Net Metering, Inspection, and Direct Benefit Transfer (DBT) of Subsidy

Net metering lets a home draw power from the grid at night. It also lets you export surplus daytime solar power back to the grid. Here's how the last mile works:

• After installation, the DISCOM schedules a physical inspection of wiring and safety compliance
• Once cleared, a bidirectional net meter replaces the old meter. It records both units consumed and units exported
• The vendor and DISCOM jointly upload the commissioning report on the national portal
• The subsidy, based on your system's kW slab, is transferred through Direct Benefit Transfer (DBT). This usually happens within 30–45 days of a successful inspection
• Any surplus power exported to the grid can be adjusted against future bills, depending on DISCOM rules

Delays at this stage usually trace back to incomplete documentation. A mismatch between applied and installed capacity is another common cause. Double-checking the commissioning report before submission saves weeks of back-and-forth. According to figures shared with the Rajya Sabha, over INR 14,771 crore in subsidies had already been disbursed by early 2026. More than 26 lakh households have benefited so far.

Collateral-Free Bank Loans and Financial Assistance

Not every household wants to pay the full amount upfront. Twelve Public Sector Banks, including SBI, Canara Bank, Union Bank, and Bank of Baroda, offer dedicated solar loans under the PM Surya Ghar Muft Bijli Yojana. These are routed through the JanSamarth portal.

• Loans up to INR 2 lakh are collateral-free, with the solar system itself acting as security
• Interest rates in 2026 range roughly between 6.5 percent and 7.5 percent per annum. Most rates are linked to the RBI repo rate
• No income proof is required for loans up to INR 2 lakh
• Loan tenures can extend up to 10–15 years depending on the bank
• Once the subsidy is credited, borrowers can prepay it against the loan. This instantly reduces the EMI

For systems above 3 kW, loans up to INR 6 lakh are available. Amounts beyond INR 2 lakh may require the solar asset to be hypothecated to the bank. Several banks also offer combined home-loan-plus-solar packages. These finance up to 90 percent of the total project cost. Meanwhile, the World Bank approved an USD 890 million financing package in July 2026 to back the scheme. This move is expected to unlock roughly USD 4.2 billion in additional private-sector solar financing over the coming years.

FAQs

Why do PM Surya Ghar applications get rejected most often?

The single most common reason is using a non-ALMM-listed inverter or panel. Equipment must match the MNRE's approved list exactly. Even a correct-looking model number can forfeit the entire subsidy if it isn't officially listed.

What if the subsidy isn't credited even after inspection?

Check the application status on the portal first. If the commissioning report shows "accepted" but payment hasn't arrived after 30–45 days, contact the PM Surya Ghar helpline directly. Don't rely only on following up with the vendor.

Is a system larger than 3 kW eligible for more subsidy?

No. The central subsidy is capped at INR 78,000 no matter how big the system is. Only state-level top-ups, where applicable, add extra value beyond that cap.