PM Surya Ghar subsidy explained: CFA per kW, eligibility and model solar villages

Under PM Surya Ghar: Muft Bijli Yojana, a residential household in a general-category state gets central financial assistance (CFA) of ₹30,000 per kW for the first 2 kW and ₹18,000 for the third kW, so ₹78,000 at most for a system of 3 kW or larger. In special category states and UTs the rates are ₹33,000 and ₹19,800 per kW. Housing societies and RWAs get ₹18,000 per kW for common facilities. These are the amounts published by the Ministry of New and Renewable Energy (MNRE); the money is credited to your bank account after the system is installed, inspected and net metered, not deducted by the vendor. This guide explains who qualifies, how the amount is calculated, and what conditions decide whether you actually receive it.

What the scheme is

PM Surya Ghar: Muft Bijli Yojana is the central government's rooftop solar programme for households, announced in February 2024 and run by MNRE through the DISCOMs of each state, which act as state implementation agencies. Its stated aim is to help about one crore households install rooftop solar and get up to around 300 units a month of solar electricity. The scheme replaced the earlier phase of the grid-connected rooftop programme for the residential segment. The overall outlay announced at approval was ₹75,021 crore; check the national portal for the current period and targets, because timelines can be extended.

The scheme has several parts. For a homeowner, the important ones are the CFA to residential consumers, the national portal through which you apply and choose a registered vendor, concessional loans through banks, and the model solar village component at district level.

The CFA table

Special category states and UTs, for MNRE schemes, generally means the North-Eastern states including Sikkim, Himachal Pradesh, Uttarakhand, Jammu & Kashmir, Ladakh, Lakshadweep and the Andaman & Nicobar Islands. Confirm your state's status on the portal.

Worked amounts (general states)

• 1 kW: 1 × ₹30,000 = ₹30,000
• 2 kW: 2 × ₹30,000 = ₹60,000
• 2.5 kW: ₹60,000 + 0.5 × ₹18,000 = ₹69,000 (the CFA is calculated on the capacity, including part kW, as the scheme wording "or part thereof" suggests; your portal calculation is final)
• 3 kW: ₹60,000 + ₹18,000 = ₹78,000
• 5 kW: still ₹78,000

MNRE's scheme guidelines say the CFA is irrespective of the inverter size: it is worked out on the rated DC capacity of the modules, not the inverter capacity, so a 3.3 kWp array on a 3 kW inverter is assessed on 3.3 kWp (which still gets the ₹78,000 maximum). The inverter must still meet the scheme's technical specification, and the installed capacity must match what the DISCOM approved.

Who is eligible

The scheme's published conditions for the residential component are, in summary:

1. The applicant is an Indian household with a house that has a roof suitable for solar panels.
2. The household has a valid electricity connection in its name (or the name on the bill matches the applicant).
3. The household has not already taken a subsidy for rooftop solar under another central scheme.
4. The system is installed by a vendor registered on the national portal for your DISCOM.
5. The system uses DCR modules (domestically manufactured cells and modules, from MNRE's approved lists) and meets the technical standards.

Tenants cannot usually apply in their own name unless the connection is in their name and the owner consents to the roof use. In apartment buildings the route is normally through the society; see housing society and RWA rooftop solar.

State top-ups

The amended scheme guidelines allow state governments and UTs to give their own additional subsidy on top of the central CFA. Where a state does this, the top-up is announced by the state energy department or nodal agency and may have its own eligibility rules and payment route. Do not assume a top-up exists because a vendor mentions it; ask for the state order or check your state renewable energy agency's website.

Conditions that decide whether you get paid

The CFA is released only when each step is completed and recorded on the portal:

Step-by-step portal instructions are in the PM Surya Ghar application steps. If the money is late, see solar subsidy not received.

Vendor obligations under the amended guidelines

Registered vendors are expected to provide a five-year maintenance period for systems installed under the scheme, and the guidelines provide for penalties and de-registration for poor service. Ask for this commitment in writing in your quotation, with the vendor's contact details and response time for faults.

Model solar villages

The scheme also funds model solar villages: in each district, villages compete over a fixed period to install the most distributed renewable energy, and the winning village receives central assistance to become a showcase for solar adoption. As described when the scheme began, the assistance was about ₹1 crore per selected village, with eligibility linked to population (a lower threshold in special category states). This component is implemented by the district administration and state agency, not by individual households, but it can bring community solar assets such as street lighting or pumps. Check your district's announcements for current terms.

What the scheme does not cover

• Off-grid systems: the guidelines say off-grid installations are not eligible for CFA. Grid-connected systems that do not export (behind-the-meter or battery hybrid systems) can be eligible, subject to approval by your state electricity regulatory commission.
• Batteries: the CFA is calculated on solar capacity; any battery is at your own cost. See home batteries, lithium vs lead-acid.
• Capacity above 3 kW for a single house: allowed, but without extra CFA.
• Imported modules: non-DCR systems are not eligible.

Frequently asked questions

Does "muft bijli" mean my bill will be zero?

Not necessarily. A system sized to your use can bring the energy charge close to zero, but fixed charges, duty and minimum charges may remain, and the "300 units" figure is a design aim, not an entitlement.

Is the subsidy paid to me or to the vendor?

Under the national portal process, the CFA is credited to the applicant's bank account after commissioning, or to the loan account first if a loan is linked in the portal. If a vendor offers to "deduct the subsidy" from the price, get the arrangement in writing and understand who bears the risk if it is delayed.

Can I get CFA again if I add panels later?

The scheme is meant for households that have not taken rooftop solar subsidy before. Adding capacity later is usually at your own cost.

Is ₹78,000 still the cap in 2026?

That is the published amount we found in MNRE material. Scheme terms can be revised, so check the portal's subsidy calculator before you sign.

Official sources

• PM Surya Ghar national portal — subsidy calculator, eligibility, registered vendors
• Ministry of New and Renewable Energy — scheme guidelines and amendments
• Press Information Bureau — official releases and parliamentary replies on the scheme
• Your DISCOM's website — state implementation and net metering steps