Government Subsidy

PM Surya Ghar: Muft Bijli Yojana Explained for Homeowners

What the national rooftop solar scheme is, who can apply, and how the subsidy relates to the total cost of your system.

28 May 20268 min read
PM Surya Ghar: Muft Bijli Yojana Explained for Homeowners

What the scheme is

PM Surya Ghar: Muft Bijli Yojana is a Government of India scheme launched in February 2024 to accelerate rooftop solar adoption among residential electricity consumers. It provides Central Financial Assistance to eligible households installing grid-connected rooftop solar through the national portal.

The scheme is administered through the National Portal for Rooftop Solar and the applicant's distribution company. Subsidy amounts, eligible capacities and process steps are defined by the scheme guidelines and should always be verified on the official portal at the time of applying.

Subsidy is not the same as system cost

Three numbers must stay separate in your mind: the total installed cost of the system, the Central Financial Assistance you may receive, and your net contribution. The subsidy reduces your effective outlay; it does not fund the entire system.

Subsidy is typically released to the applicant's bank account after installation, inspection and commissioning are completed and verified through the portal.

Net metering is a separate track

Net metering governs how your surplus generation is credited by the distribution company. It follows state regulatory rules and is independent of the subsidy. Both processes run in parallel during a typical residential installation.

Before you apply

Confirm current eligibility criteria, applicable capacity slabs and subsidy values on the official national portal, and ensure your installation partner is a registered vendor for the scheme in your state.

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