Rooftop Solar Subsidies in India 2026 — PM Surya Ghar Muft Bijli Yojana Explained
Shinesun's editorial team writes about solar lighting based on our manufacturing, installation, and field-service experience across India.
What is PM Surya Ghar Muft Bijli Yojana?
PM Surya Ghar Muft Bijli Yojana is the central government scheme launched in February 2024 to bring rooftop solar to one crore Indian households. The headline benefit: eligible households can receive free electricity (up to 300 units per month) by installing a subsidised solar system on their roof.
It replaced and significantly expanded the older state-by-state subsidy patchwork that had been in place since the early 2010s. The scheme is administered by the Ministry of New and Renewable Energy (MNRE) and the application is centralised through a single national portal.
Subsidy structure
The subsidy is tiered by installed capacity:
| System size | Central subsidy | Suitable for |
|---|---|---|
| Up to 1 kW | ₹30,000 | Households consuming up to ~150 units/month |
| Up to 2 kW | ₹60,000 | Households consuming up to ~300 units/month |
| 3 kW and above | ₹78,000 (capped) | Households consuming > 300 units/month |
Some states top up the central subsidy with additional state-level incentives. The total benefit can vary significantly depending on where you live.
Who can apply
- Indian citizen with a residential property (owned, not rented in most cases).
- Valid electricity connection in the applicant's name.
- Roof suitable for solar installation (load-bearing, with adequate sun exposure).
- Have not previously availed a central subsidy for rooftop solar.
How the process works (high level)
- Register on the national portal at pmsuryaghar.gov.in with state and DISCOM details.
- Apply for feasibility approval from your local DISCOM. This step usually takes 15-30 days.
- Choose a DISCOM-empanelled vendor from the portal's vendor list. You cannot install through just any solar company and still claim the subsidy.
- Installation and inspection — vendor installs, DISCOM inspects, net meter is fitted.
- Subsidy disbursement — the subsidy is credited directly to the applicant's bank account after successful commissioning, typically within 30 days.
Specific timelines, document lists, and vendor lists vary by state and change periodically. The single source of truth is the official portal — don't rely on third-party agents who claim to expedite the process for a fee.
Things to know before applying
- The 300 free units target is for grid-connected systems, not standalone. The system feeds excess generation back to the grid (net metering) — you only get the "free electricity" benefit if you're connected to the DISCOM.
- Payback period is typically 4-7 years for residential systems after subsidy, depending on your tariff slab and consumption pattern.
- Maintenance is minimal — solar panels typically warrantied for 25 years, inverters for 5-10 years. The most common service need is cleaning the panels every few months.
- This scheme is for grid-tied rooftop solar. If your need is off-grid lighting for a compound, road, garden, or area without reliable grid connection, a different category of solar product applies.
Off-grid alternatives for areas without rooftop solar
Shinesun's product range focuses on off-grid solar lighting — solar street lights, garden lights, flood lights, and gate lights that work independently of the grid and don't require subsidies, DISCOM approval, or installation paperwork. These are the right fit for:
- Outdoor areas where rooftop solar isn't an option (no suitable roof, rented property, remote site).
- Lighting needs that don't justify a full rooftop installation (small gardens, compound walls, parking areas).
- Areas with frequent grid outages where backup independent lighting is needed.
Browse the Shinesun solar street light range or explore our full off-grid solar product catalog.