PM Surya Ghar Muft Bijli Yojana: How it works, who can apply, and what benefits households get

The PM Surya Ghar: Muft Bijli Yojana, launched in February 2024, is the Centre’s flagship rooftop solar scheme aimed at helping households reduce electricity bills while promoting clean energy adoption. The scheme seeks to install rooftop solar systems in one crore homes by the end of FY 2026-27 and offers subsidies, low-interest loans, and the potential for households to earn income by selling excess electricity back to the grid.

According to the Ministry of New and Renewable Energy (MNRE), more than 26.19 lakh rooftop solar systems had already been installed under the scheme as of March 19, 2026, reflecting strong nationwide adoption.

What is PM Surya Ghar Muft Bijli Yojana?

The scheme is designed to provide eligible households with up to 300 units of free electricity every month through grid-connected rooftop solar installations. It is open to residential consumers with an active electricity connection and is implemented through a fully digital national portal.

The government provides Central Financial Assistance (CFA) to reduce the upfront cost of installing solar panels. Since the scheme's launch, more than ₹17,967 crore has been disbursed as subsidy support to beneficiaries.

Key benefits

1. Reduced Electricity Bills

Households can significantly lower or even eliminate their monthly power bills by generating electricity through rooftop solar systems.

2. Up to 300 Units of Free Electricity

Eligible beneficiaries can offset their electricity consumption through solar generation, translating into savings on power expenses.

3. Government Subsidy

The subsidy structure includes:

Rooftop Solar Capacity    Subsidy
Up to 2 kW    60% of system cost
Additional capacity from 2-3 kW    40% of additional cost
Maximum subsidy for 3 kW system    ₹78,000

A household installing a 3 kW system can receive a subsidy of up to ₹78,000.

4. Earn from Surplus Power

If a household generates more electricity than it consumes, the excess power can be exported to the grid under net metering arrangements, generating additional income.

5. Affordable Financing

The scheme also facilitates collateral-free loans at around 7% interest for rooftop solar systems up to 3 kW, helping households manage installation costs.

Who is eligible?

To apply under the scheme, an applicant must:

• Be an Indian citizen
• Own a house with a suitable rooftop for solar installation
• Have a valid and active electricity connection
• Not have availed any other rooftop solar subsidy scheme
• Suggested Solar Capacity and Subsidy
• Monthly Electricity Consumption    Recommended Solar Capacity    Subsidy Support
• 0-150 units    1-2 kW    ₹30,000-₹60,000
• 150-300 units    2-3 kW    ₹60,000-₹78,000
• Above 300 units    Above 3 kW    ₹78,000

How to apply

The application process is entirely online:

• Visit the PM Surya Ghar National Portal.
• Register using state, DISCOM details, consumer number, mobile number and email ID.
• Log in and submit the rooftop solar application.
• Wait for feasibility approval from the local DISCOM.
• Install the solar system through a registered vendor.
• Apply for net metering after installation.
• Following inspection and commissioning approval, submit bank details.
• The subsidy is credited directly to the beneficiary's bank account after verification.

The government says subsidy transfers are generally processed within 15 days of a valid request, making the scheme one of the fastest digital subsidy programmes in the renewable energy sector.