PM Surya Ghar Muft Bijli Yojana is the central government's residential rooftop solar subsidy, launched in February 2024. It replaced the earlier phased subsidy structure with a simpler slab system and a national portal. This guide covers what it pays, who qualifies, and how the application fits alongside your net metering process.
How the process works
The subsidy is paid to the homeowner after installation and commissioning, not deducted upfront by the installer. It applies to residential connections only — commercial, industrial, and institutional installations are not covered, though those are usually evaluated on accelerated depreciation instead. The amount is fixed by slab rather than as a percentage, which means it is worth proportionally more on smaller systems.
| System capacity | Central subsidy | Notes |
|---|---|---|
| 1 kW | ₹30,000 | Full slab rate |
| 2 kW | ₹60,000 | Full slab rate |
| 3 kW | ₹78,000 | Slab cap reached |
| Above 3 kW | ₹78,000 | Capped — no further subsidy |
Central subsidy under PM Surya Ghar as structured at launch in February 2024. Some states add their own incentive on top; Karnataka's position should be confirmed against current notifications. Scheme rates and eligibility are revised periodically, so verify current terms on the national portal before budgeting.
Technical requirements
Because the subsidy caps at 3kW, its influence on system sizing is significant and frequently distorting. A 3kW system attracts ₹78,000 and so does a 5kW system, which means the marginal 2kW is entirely unsubsidised. That does not make the larger system wrong — if your consumption justifies 5kW, undersizing to chase the cap leaves you buying grid power for years. It simply means the decision should follow your bill, not the slab.
Working with the Karnataka utility
Karnataka households apply through the national PM Surya Ghar portal, and the application runs alongside the ESCOM net metering process rather than replacing it. You will need a registered vendor, and the subsidy is released after commissioning and inspection. Practically, the two processes should be started together, because the net metering approval is usually the longer pole.
Where applications stall
The subsidy causes more budgeting errors than any other part of a residential project:
- Treating the subsidy as an upfront discount rather than a post-commissioning reimbursement
- Sizing down to 3kW purely to sit at the cap when consumption justifies more
- Assuming commercial or institutional projects qualify — they do not
- Budgeting the net figure before eligibility and vendor registration are confirmed
- Starting the subsidy application separately from net metering and losing weeks in sequence
What we recommend
Budget the full installed cost as your actual outlay and treat the subsidy as a reimbursement that arrives later. Size the system from your consumption rather than from the slab cap, then start the portal application and the ESCOM net metering process at the same time so the longer one is not waiting on the shorter.
Common questions
- Is the subsidy deducted from my invoice?
- No. It is disbursed to you after installation, inspection, and commissioning. Your budget needs to carry the full cost until it arrives.
- Do I still get subsidy above 3kW?
- The central subsidy caps at ₹78,000, which is reached at 3kW. Larger systems receive the same amount, so the additional capacity is unsubsidised.
- Can businesses or schools claim it?
- No. PM Surya Ghar is residential only. Commercial and institutional projects are usually evaluated on accelerated depreciation, which often produces a stronger case anyway.
- Do I need a registered vendor?
- Yes. The scheme requires installation through a vendor registered under the programme, so confirm registration before signing anything.
- Should I wait for a better scheme?
- Scheme terms change by notification and cannot be predicted. Waiting also means continuing to pay your current bill, which usually outweighs any speculative improvement.
Talk to our engineering team for a solar assessment.
We will review your consumption, roof, and site constraints before recommending any capacity.