CENTRAL SUBSIDY

Under the PM Surya Ghar: Muft Bijli Yojana, the Government of India provides Central Financial Assistance (CFA) to encourage residential rooftop solar adoption. The subsidy is available only for residential consumers installing on-grid rooftop solar systems through approved vendors and is structured on a slab-based model rather than a flat rate. For installations up to 2 kW, the subsidy is ₹30,000 per kW, while the third kilowatt receives ₹18,000, making the maximum subsidy ₹78,000 for systems of 3 kW or above. For example, a 1 kW system receives ₹30,000, a 2 kW system receives ₹60,000, and a 3 kW system receives ₹78,000. Even if a consumer installs a 4 kW or 5 kW system, the subsidy remains capped at ₹78,000, and any additional capacity must be funded by the consumer. The subsidy amount is credited directly to the beneficiary’s bank account after installation, inspection, and DISCOM approval. A 3 kW system typically generates around 360–400 units per month, which can substantially reduce electricity bills for households consuming approximately 250–300 units monthly.

Key Highlights:

• Applicable only for residential on-grid rooftop solar systems
   
• ₹30,000 per kW subsidy for first 2 kW
   
• ₹18,000 subsidy for the third kW
   
• Maximum subsidy limit: ₹78,000 per household
   
• Subsidy is transferred via Direct Benefit Transfer (DBT) after inspection
   
• Capacity beyond 3 kW does not receive additional subsidy
   
• System must comply with MNRE and DISCOM guidelines
   

Subsidy policies are subject to change as per government regulations.