India’s PM Surya Ghar Muft Bijli Yojana combines a central financial assistance subsidy with concessional bank loans to make rooftop solar affordable for residential consumers. Understanding how subsidy, system cost, net metering savings, and loan EMI interact is essential for building accurate proposals and converting residential customers.
This guide calculates PM Surya Ghar subsidy amounts, shows worked examples for different system sizes, includes state-wise top-up subsidies, and provides payback and 25-year savings projections at different state tariff and irradiance levels.
PM Surya Ghar Central Financial Assistance (CFA)
The central subsidy is calculated in two slabs based on installed system capacity:
| System Size | Slab | CFA per kW | CFA for this slab | Cumulative CFA |
|---|---|---|---|---|
| First 2 kW | Slab 1 | Rs. 30,000 | Rs. 60,000 | Rs. 60,000 |
| Third kW | Slab 2 | Rs. 18,000 | Rs. 18,000 | Rs. 78,000 |
| Above 3 kW | No additional CFA | — | — | Rs. 78,000 (capped) |
Key points:
- The maximum CFA is Rs. 78,000 for any system of 3 kW or above
- Subsidy is paid directly to the beneficiary’s bank account after commissioning and DISCOM net meter installation
- Only systems installed by MNRE-empanelled vendors using ALMM-listed components are eligible
- Subsidy is available to residential consumers with a sanctioned load of up to 10 kW
Worked example — CFA by system size:
| System Size | Slab 1 CFA | Slab 2 CFA | Total CFA |
|---|---|---|---|
| 1 kW | Rs. 30,000 | — | Rs. 30,000 |
| 2 kW | Rs. 60,000 | — | Rs. 60,000 |
| 3 kW | Rs. 60,000 | Rs. 18,000 | Rs. 78,000 |
| 5 kW | Rs. 60,000 | Rs. 18,000 | Rs. 78,000 (no additional) |
| 10 kW | Rs. 60,000 | Rs. 18,000 | Rs. 78,000 (capped) |
State Top-Up Subsidies
Several states offer additional subsidies on top of the central CFA:
| State | State Scheme | Top-Up Amount | Notes |
|---|---|---|---|
| Gujarat | Surya Gujarat | Rs. 10,000–20,000 | Varies by consumer category; check current GUVNL/DISCOM notice |
| Rajasthan | RRECL state subsidy | Rs. 10,000–15,000 | For BPL and specific categories; check RRECL portal |
| Maharashtra | MEDA top-up | Rs. 10,000–25,000 | For residential consumers in specific schemes; check MSEDCL empanelment |
| Andhra Pradesh | AP Solar Policy | Varies | State-level incentives for residential; check NREDCAP |
| Other states | PM Surya Ghar only | — | Remaining states rely on central CFA without additional top-up |
State Top-Up Amounts Change Annually
State top-up subsidies are announced via DISCOM empanelment notices or state renewable energy agency orders. They change annually and are sometimes exhausted mid-year when quotas are met. Always verify the current state top-up amount with the DISCOM or state renewable energy agency before finalising a customer proposal.
System Cost and Net Cost After Subsidy
Typical Installed Cost Range (2026)
| System Size | Gross Installed Cost (Rs./kW) | Total Gross Cost | CFA | Net Cost After CFA |
|---|---|---|---|---|
| 1 kW | Rs. 65,000–75,000 | Rs. 65,000–75,000 | Rs. 30,000 | Rs. 35,000–45,000 |
| 2 kW | Rs. 62,000–72,000 | Rs. 1,24,000–1,44,000 | Rs. 60,000 | Rs. 64,000–84,000 |
| 3 kW | Rs. 60,000–70,000 | Rs. 1,80,000–2,10,000 | Rs. 78,000 | Rs. 1,02,000–1,32,000 |
| 5 kW | Rs. 55,000–65,000 | Rs. 2,75,000–3,25,000 | Rs. 78,000 | Rs. 1,97,000–2,47,000 |
| 10 kW | Rs. 50,000–60,000 | Rs. 5,00,000–6,00,000 | Rs. 78,000 | Rs. 4,22,000–5,22,000 |
Worked Example: 3 kW System in Gujarat
- Gross installed cost (ALMM components, empanelled installer): Rs. 1,95,000 (Rs. 65,000/kW)
- PM Surya Ghar CFA: Rs. 78,000
- Surya Gujarat state top-up: Rs. 15,000
- Net cost after all subsidies: Rs. 1,95,000 − Rs. 78,000 − Rs. 15,000 = Rs. 1,02,000
This Rs. 1,02,000 is what the consumer pays upfront (or finances). The subsidies are paid back to the consumer’s account after commissioning.
Worked Example: 3 kW System in Karnataka
- Gross installed cost: Rs. 2,10,000 (Rs. 70,000/kW — Karnataka’s urban installation costs are slightly higher)
- PM Surya Ghar CFA: Rs. 78,000
- State top-up: None currently
- Net cost after subsidy: Rs. 2,10,000 − Rs. 78,000 = Rs. 1,32,000
Concessional Loan: EMI Calculator
PM Surya Ghar includes a concessional loan component for the post-subsidy net cost. Nationalised banks participating in the scheme (SBI, Bank of Baroda, Union Bank, Canara Bank, Punjab National Bank) offer loans up to Rs. 2 lakh at 7% per annum.
EMI Table (7% p.a., nationalised banks)
| Loan Amount | Loan Tenure | Monthly EMI | Total Interest Paid |
|---|---|---|---|
| Rs. 50,000 | 3 years | Rs. 1,544 | Rs. 5,584 |
| Rs. 75,000 | 3 years | Rs. 2,316 | Rs. 8,376 |
| Rs. 1,00,000 | 5 years | Rs. 1,980 | Rs. 18,800 |
| Rs. 1,25,000 | 5 years | Rs. 2,475 | Rs. 23,500 |
| Rs. 1,50,000 | 5 years | Rs. 2,970 | Rs. 28,200 |
| Rs. 2,00,000 | 5 years | Rs. 3,960 | Rs. 37,600 |
Applying for the loan: The loan application is initiated through the PM Surya Ghar portal at pmsuryaghar.gov.in after the DISCOM’s technical sanction. The portal links to participating bank branches. The consumer does not need to approach the bank independently — the portal routes the application.
Pro Tip: Frame the EMI Against the Current Electricity Bill
For a consumer paying Rs. 4,000–5,000/month on electricity, a Rs. 3,960/month EMI for a 3 kW system is financially neutral in the short term — and after the 5-year loan term, the system generates free electricity for the remaining 20 years. Use solar proposals software to build a side-by-side comparison: current bill vs EMI + residual bill during loan period vs zero-bill after loan payoff.
Net Metering Savings Calculation
How Net Metering Savings Are Calculated
Under India’s net metering framework, savings come from two sources:
- Self-consumed solar units: Each unit generated and consumed on-site saves the consumer the full retail tariff (Rs. 5–9/unit depending on state and consumer category)
- Exported surplus units: Each unit exported to the grid earns the APPC credit (Rs. 2.80–4.50/unit depending on state)
Formula:
Annual savings = (Self-consumed units × Retail tariff) + (Exported units × APPC)Annual Generation by System Size and Location
| System Size | Low irradiance (MP, UP, Bihar) | Medium irradiance (Maharashtra, AP) | High irradiance (Rajasthan, Gujarat, TN, Karnataka) |
|---|---|---|---|
| 1 kW | 1,100–1,300 units/year | 1,300–1,500 units/year | 1,500–1,750 units/year |
| 2 kW | 2,200–2,600 units/year | 2,600–3,000 units/year | 3,000–3,500 units/year |
| 3 kW | 3,300–3,900 units/year | 3,900–4,500 units/year | 4,500–5,250 units/year |
| 5 kW | 5,500–6,500 units/year | 6,500–7,500 units/year | 7,500–8,750 units/year |
Worked Savings Example: 3 kW System, High-Irradiance State (Rajasthan)
System: 3 kW rooftop, Jaipur. Generation: 4,800 units/year.
Household consumption: 4,200 units/year.
Retail tariff: Rs. 7/unit. APPC (RERC): Rs. 3.40/unit. Settlement: Annual.
- Self-consumed: 4,200 units × Rs. 7 = Rs. 29,400 saved
- Exported surplus: 600 units × Rs. 3.40 = Rs. 2,040 earned (annual credit)
- Total annual savings: Rs. 31,440
Worked Savings Example: 3 kW System, Medium-Irradiance State (Maharashtra)
System: 3 kW rooftop, Pune. Generation: 4,200 units/year.
Household consumption: 3,600 units/year.
Retail tariff: Rs. 8.50/unit. APPC (MSEDCL): Rs. 3.90/unit. Settlement: Monthly.
- Self-consumed: 3,600 units × Rs. 8.50 = Rs. 30,600 saved
- Exported surplus: 600 units × Rs. 3.90 = Rs. 2,340 earned
- Total annual savings: Rs. 32,940
Worked Savings Example: 3 kW System, Lower-Irradiance State (MP)
System: 3 kW rooftop, Bhopal. Generation: 3,600 units/year.
Household consumption: 3,200 units/year.
Retail tariff: Rs. 6.50/unit. APPC (MPERC): Rs. 3.00/unit. Settlement: Monthly.
- Self-consumed: 3,200 units × Rs. 6.50 = Rs. 20,800 saved
- Exported surplus: 400 units × Rs. 3.00 = Rs. 1,200 earned
- Total annual savings: Rs. 22,000
Payback Period by State
Using a net system cost of Rs. 1,20,000 (3 kW after PM Surya Ghar CFA, no state top-up) for comparison:
| State | Annual Savings (approx.) | Simple Payback Period |
|---|---|---|
| Tamil Nadu | Rs. 33,000–38,000 | 3.2–3.6 years |
| Karnataka | Rs. 32,000–37,000 | 3.2–3.8 years |
| Maharashtra | Rs. 30,000–35,000 | 3.4–4.0 years |
| Rajasthan | Rs. 30,000–35,000 | 3.4–4.0 years |
| Gujarat | Rs. 29,000–34,000 | 3.5–4.1 years |
| Telangana | Rs. 28,000–33,000 | 3.6–4.3 years |
| Andhra Pradesh | Rs. 27,000–32,000 | 3.8–4.4 years |
| Punjab | Rs. 26,000–31,000 | 3.9–4.6 years |
| Uttar Pradesh | Rs. 24,000–29,000 | 4.1–5.0 years |
| Madhya Pradesh | Rs. 21,000–26,000 | 4.6–5.7 years |
Assumes 4,000–5,000 units/year generation (irradiance-adjusted), retail tariff Rs. 6.50–9.00/unit, 70–80% self-consumption.
25-Year Savings Projection
Applying 4% annual tariff escalation and 0.5% annual system degradation:
| Year | Annual Tariff (Rs./unit) | Annual Generation (units, degraded) | Annual Savings |
|---|---|---|---|
| 1 | 7.00 | 4,800 | Rs. 31,440 |
| 5 | 8.51 | 4,704 | Rs. 37,500 |
| 10 | 10.36 | 4,608 | Rs. 44,600 |
| 15 | 12.60 | 4,512 | Rs. 52,800 |
| 20 | 15.33 | 4,416 | Rs. 62,700 |
| 25 | 18.67 | 4,320 | Rs. 74,200 |
Cumulative 25-year savings (3 kW, Rajasthan-equivalent irradiance, Rs. 7/unit starting tariff, 4% escalation): approximately Rs. 11,00,000–12,00,000
After subtracting net system cost of Rs. 1,20,000 (after PM Surya Ghar CFA), the net 25-year return is approximately Rs. 9,80,000–10,80,000 on a Rs. 1,20,000 investment — an 8–9× return over 25 years.
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How to Apply for PM Surya Ghar Subsidy
Step 1 — Register at pmsuryaghar.gov.in
Create a beneficiary account at the national portal using your Aadhaar number, mobile number linked to Aadhaar, and electricity consumer account number.
Step 2 — Submit application
Enter the proposed system details (capacity, DISCOM service area). The portal generates a reference number for tracking.
Step 3 — DISCOM technical approval
Your DISCOM reviews the application for technical feasibility. Approval takes 15–45 days depending on the DISCOM and location. You receive SMS notification on your registered mobile.
Step 4 — Engage empanelled installer
Only MNRE-empanelled installers using ALMM-listed components are eligible. You can select from the portal’s installer list for your DISCOM service area.
Step 5 — Installation and commissioning
The empanelled installer installs the system. The DISCOM conducts an inspection and installs the net meter. After inspection, the commissioning report is submitted through the portal.
Step 6 — Subsidy disbursement
After successful commissioning, the portal routes the CFA payment to your registered bank account (linked to Aadhaar). Payment typically takes 30–60 days after commissioning. State top-ups follow separately through the state agency process.
Step 7 — Concessional loan (if applicable)
If you need financing for the net cost after subsidy, apply for the concessional loan through the portal after technical sanction. The portal connects you to participating nationalised bank branches.
Nationalised Banks for PM Surya Ghar Loans
Loans under the PM Surya Ghar scheme are available through:
| Bank | Website | Loan Product |
|---|---|---|
| State Bank of India | sbi.co.in | SBI Solar Home Loan |
| Bank of Baroda | bankofbaroda.in | Baroda Solar Loan |
| Union Bank of India | unionbankofindia.co.in | Union Solar Scheme |
| Canara Bank | canarabank.com | Canara Solar Loan |
| Punjab National Bank | pnbindia.in | PNB Solar Loan |
Processing through the PM Surya Ghar portal typically gives faster processing than applying to a bank directly — the portal routes applications with pre-verified subsidy sanction documentation already attached.
Frequently Asked Questions
How much subsidy is available under PM Surya Ghar?
Rs. 30,000/kW for the first 2 kW (Rs. 60,000) and Rs. 18,000 for the third kW (Rs. 18,000), totalling Rs. 78,000 maximum for a 3 kW or larger system. Paid to the consumer’s bank account after commissioning.
Do states offer additional top-up subsidies?
Yes. Gujarat, Rajasthan, Maharashtra, and some other states offer additional state top-ups ranging from Rs. 10,000 to Rs. 25,000. These change annually — verify the current amount with your DISCOM or state renewable energy agency before finalising a proposal.
How do I apply for the concessional loan?
Through the PM Surya Ghar portal (pmsuryaghar.gov.in) after receiving technical sanction from your DISCOM. The portal connects you to participating nationalised banks. Loans up to Rs. 2 lakh at 7% for up to 5 years (EMI approximately Rs. 3,960/month for Rs. 2 lakh over 5 years).
What is the payback period for a 3 kW system?
Typically 4–6 years in high-irradiance states (Rajasthan, Gujarat, Karnataka, Tamil Nadu) after PM Surya Ghar subsidy. In lower-irradiance states (MP, UP), 6–8 years. After payback, the system generates essentially free electricity for the remaining 15–20 years.
What is the 25-year return on a 3 kW system?
In a high-irradiance state with Rs. 7/unit starting tariff and 4% annual tariff escalation, a 3 kW system generates cumulative savings of approximately Rs. 11–12 lakh over 25 years. On a net investment of Rs. 1.2 lakh after PM Surya Ghar CFA, this represents approximately an 8–9× return over the system’s life.
