Overview

The Prime Minister’s Surya Ghar Muft Bijli Yojana is a Central Government programme launched in February 2024 with an approved outlay of ₹75,021 crore. Its objective is to enable one crore residential households to install grid‑connected rooftop solar systems and to generate up to 300 units of electricity per month per household. The scheme offers a central subsidy of up to ₹78,000 per eligible residence and provides access to collateral‑free concessional financing.

Installation Progress and Impact

As of 22 July 2026, a total of 39.72 lakh rooftop solar systems have been installed, representing a combined capacity of 6.7 GW. These installations have benefited more than 48 lakh households. Distribution‑company (DISCOM) data indicate that 18.93 lakh beneficiaries have received a zero electricity bill for at least one billing period after installing solar. In the fiscal year 2025‑26 alone, 18.71 lakh systems were added, covering the same 6.7 GW capacity and serving 22.71 lakh households.

Subsidy Structure

The subsidy is tiered by system size:

  • 1 kW system: ₹30,000 subsidy (₹30,000 per kW).
  • 2 kW system: ₹60,000 subsidy (₹30,000 per kW for the first two kW).
  • 3 kW system: ₹78,000 subsidy (₹30,000 per kW for the first two kW plus ₹18,000 for the third kW).
  • Above 3 kW: the subsidy remains capped at ₹78,000 regardless of additional capacity.

State governments may offer extra incentives, but these are state‑specific and not included in the central subsidy.

Cost, Savings and Pricing (Freyr Energy Reference)

Freyr Energy’s residential pricing illustrates the net cost after subsidy:

  • 1 kW: total cost ₹1.20–₹1.30 lakh, subsidy ₹30,000, net cost ₹90,000–₹1.00 lakh.
  • 2 kW: total cost ₹1.80–₹1.90 lakh, subsidy ₹60,000, net cost ₹1.20–₹1.30 lakh.
  • 3 kW: total cost ₹2.30–₹2.40 lakh, subsidy ₹78,000, net cost ₹1.52–₹1.62 lakh.

Freyr customers may also obtain an additional ₹22,000 discount, potentially raising total savings to ≈₹1 lakh for eligible installations.

Typical generation estimates are ~120 units/month for 1 kW, ~240 units/month for 2 kW, and ~360 units/month for 3 kW. Roof‑area requirements are roughly 100 sq ft, 200 sq ft, and 300 sq ft respectively. Freyr suggests sizing of 1 kW for monthly bills up to ₹2,000, 2 kW for ₹2,000–₹3,500, and 3 kW for ₹3,500–₹5,000.

Financing Options

Collateral‑free loans are available from nationalised banks at a concessional rate of repo + 50 basis points, which equates to 5.75 % per annum as of July 2026, with a repayment tenure of 10 years. By September 2025, public‑sector banks had sanctioned 5.79 lakh applications amounting to ₹10,907 crore under the scheme. Freyr Energy also offers its own financing, with EMIs starting from ₹1,466 per month over up to 120 months, subject to lender terms.

Application Procedure

The application is processed through the PM Surya Ghar National Portal:

1. Register on the portal, selecting state and DISCOM.

2. Enter electricity consumer number and mobile.

3. Submit the rooftop solar application with required details.

4. Obtain technical feasibility approval from the DISCOM.

5. Choose a registered vendor and complete installation.

6. Submit plant details, complete net‑metering, and obtain the commissioning certificate.

7. Provide bank account details and a cancelled cheque.

8. The subsidy is transferred via Direct Benefit Transfer, typically within 30 days after final verification.

Net Metering

Net metering uses a bidirectional meter to record electricity drawn from the grid and surplus solar generation exported to the grid. Surplus export is credited according to state‑specific net‑metering regulations.

Environmental Impact

The government estimates that installing rooftop solar in one crore households could generate 1,000 billion units of renewable electricity and avoid 720 million tonnes of CO₂‑equivalent emissions over a 25‑year horizon.

Comparison with PM‑KUSUM

PM Surya Ghar targets residential rooftop solar and provides central financial assistance up to ₹78,000 for households. In contrast, PM‑KUSUM focuses on agricultural users, supporting solar pumps, pump solarisation, and decentralised generation, with component‑wise assistance rather than a household‑level subsidy.

Frequently Asked Questions (selected)

  • Eligibility: Indian citizens owning a house with a suitable roof, a valid electricity connection, and no prior solar subsidy.
  • Maximum subsidy: ₹78,000 for systems of 3 kW or larger.
  • Loan availability: Collateral‑free loans at 5.75 % p.a. for ten years.
  • State incentives: May vary; applicants should check with their state renewable‑energy agency or DISCOM.
  • Tenants: Generally ineligible unless they meet ownership and connection criteria.
  • Application timeline: Subsidy credited within 30 days after commissioning and bank‑detail submission.