PM Surya Ghar Subsidy Explained (2026): What Indian Installers Need to Know
What Is PM Surya Ghar Muft Bijli Yojana?
Launched in early 2024, PM Surya Ghar Muft Bijli Yojana is the Government of India’s flagship rooftop solar scheme aimed at putting solar panels on one crore households. The scheme offers a direct central subsidy credited to the homeowner’s bank account after installation and DISCOM inspection. For solar installers, this subsidy is one of the most powerful selling tools available — if you quote it correctly.
Central Subsidy Slabs (Current Schedule)
The subsidy is calculated on the sanctioned system capacity, not on the actual invoice amount:
| System Size | Central Subsidy Rate |
|---|---|
| Up to 2 kW | ₹30,000 per kW |
| 3rd kW | ₹18,000 (for that kW only) |
| Above 3 kW | Capped at ₹78,000 total |
In plain numbers:
- 1 kW system → ₹30,000 subsidy
- 2 kW system → ₹60,000 subsidy
- 3 kW system → ₹78,000 subsidy
- 5 kW system → ₹78,000 subsidy (cap applies; no additional subsidy beyond 3 kW)
The subsidy applies to residential grid-connected rooftop systems only. Commercial and industrial consumers are not eligible under this scheme.
Who Is Eligible?
- Residential households with a valid electricity connection (any DISCOM).
- System must be installed by a MNRE-empanelled vendor registered on the National Portal.
- Only one subsidy per electricity connection (consumer number).
- The applicant must apply through the PM Surya Ghar National Portal (pmsuryaghar.gov.in) before or alongside installation — the order of steps matters for subsidy disbursement.
State governments may top up the central subsidy with an additional state subsidy. Always check your state DISCOM’s current notification before quoting.
How to Present Net Price to Homeowners
The subsidy is post-installation — the homeowner pays the full installer price upfront (or via loan), then receives the subsidy directly in their bank account after DISCOM net-metering inspection.
A clean way to present this:
- Gross system price — your full quote including panels, inverter, structure, wiring, and installation.
- Less: Central subsidy — show the applicable slab amount clearly.
- Less: State subsidy (if applicable).
- Net effective cost to homeowner — what they actually pay after subsidy credit.
This framing turns a ₹1,50,000 quote for a 3 kW system into a ₹72,000 net-cost conversation. That is a much easier sale.
Common Quoting Mistakes Installers Make
- Applying the per-kW rate uniformly above 3 kW. The ₹18,000/kW rate applies only to the 3rd kW. Above 3 kW, the total subsidy is capped at ₹78,000. Quoting ₹30,000/kW for a 5 kW system and promising ₹1,50,000 subsidy is a serious error that erodes trust.
- Ignoring the application sequence. If the homeowner skips the portal registration step, the subsidy may be rejected entirely. Make this part of your onboarding checklist.
- Not specifying the empanelled vendor requirement. If your company is not registered on the national portal, the customer cannot claim the subsidy through you. Keep your registration current.
- Quoting stale rates. Subsidy rates have been revised before and may change again. Never hard-code rates in a printed brochure without a review date.
How Software Auto-Applies It
A purpose-built solar quoting tool like Solarswytch automatically applies the correct subsidy slabs based on system size entered. When you type “3 kW residential,” the proposal instantly shows ₹78,000 subsidy and the correct net price — no manual calculation, no risk of quoting the wrong slab. The homeowner receives a professional PDF with subsidy line items clearly broken out, which builds confidence and reduces back-and-forth.
Automating this also means your sales team never accidentally quotes the wrong amount to a customer, a mistake that can derail a deal at the signing stage.
Disclaimer: Subsidy rates and eligibility conditions under PM Surya Ghar Muft Bijli Yojana are subject to revision by the Government of India and individual state governments. Always verify the latest applicable rates on the official national portal at pmsuryaghar.gov.in and your state DISCOM’s notifications before finalising any customer quote.