PM Surya Ghar Muft Bijli Yojana: Subsidy Slabs & Eligibility Guidelines (2026)
The Central Government of India launched the PM Surya Ghar scheme to subsidize solar installations for 1 crore residential households across India. The central subsidy is structured directly to favor smaller residential installations, ensuring high financial viability for middle-class homes.
1. Central Government (CFA) Subsidy Slabs
The central financial assistance (CFA) is fixed based on system capacity slabs:
- 1 kW System: ₹30,000 direct subsidy.
- 2 kW System: ₹60,000 direct subsidy.
- 3 kW System & Above: Capped at a maximum of ₹78,000 for any residential connection.
2. Additional State Government Top-up Subsidies
Several state governments in India provide extra incentives on top of the central subsidy, credited directly to your bank account or adjusted in DISCOM bills:
- Uttar Pradesh (UP): Provides ₹15,000 per kW extra, capped at ₹30,000 per system.
- Delhi: Offers Generation Based Incentive (GBI) of ₹3 per unit of solar power generated, credited monthly to the electricity bill.
- Madhya Pradesh: Offers direct rebates on municipal taxes and processing fees.
3. On-Grid vs Off-Grid Solar Policies & Subsidies
It is important to understand the regulatory and subsidy differences before choosing your solar system type:
| Feature |
On-Grid Solar System |
Off-Grid Solar System |
| Grid Connection |
Connected to local utility grid (DISCOM) |
Completely independent of utility grid |
| Battery Storage |
No batteries required (lower setup cost) |
Requires battery bank (increases storage cost) |
| Rooftop Subsidy |
Eligible for up to ₹78,000 (PM Surya Ghar) |
Not eligible for residential subsidies |
| Agricultural Subsidy |
PM-KUSUM Component-C (Grid pumps) |
PM-KUSUM Component-B (Up to 60% off-grid pumps) |
| Power Cuts Behavior |
Shuts down automatically (for grid safety) |
Continues to supply power from battery bank |
4. Step-by-Step Guide to Claim Your Solar Subsidy
- Register on the national portal: pmsuryaghar.gov.in with your consumer number and phone.
- Apply for feasibility approval from your local DISCOM.
- Install the solar setup *only* via a registered, empanelled solar installer.
- Submit installation details, request net-metering commissioning, and upload the invoice.
- The subsidy will be credited directly to your bank account within 30 days of portal clearance!
Frequently Asked Questions
No, the PM Surya Ghar subsidy is strictly limited to residential properties. Commercial and industrial entities can, however, claim accelerated depreciation (AD) benefits to lower corporate tax liabilities.
To claim the government subsidy, it is mandatory that the solar modules used are manufactured in India using domestic solar cells. Non-DCR (imported) panels are not eligible for any subsidies.
No, standard residential off-grid solar systems (which use battery storage) are not eligible for government subsidies under the PM Surya Ghar scheme. Subsidies are only granted for grid-connected (on-grid) rooftop solar systems with net-metering.
Yes, under Component-B of the PM-KUSUM scheme, the government offers significant subsidies (ranging from 30% to 60%) to farmers for installing standalone off-grid solar agricultural water pumps.
On-grid systems connect directly to your local grid and net-meter bills. Off-grid systems operate completely independently using a battery bank. Hybrid systems combine both by connecting to the grid while using a small battery bank for backup power during outages.
