Introduction: Making Solar Energy Affordable for Every Home
With rising electricity bills and a push toward sustainable living, the PM Surya Ghar Muft Bijli Yojana is a game-changer. Launched by the Indian government, this initiative promotes rooftop solar panel installation by offering central and state financial assistance. The aim? To empower and give financial assistance to generate up to 300 units of free electricity per month.
What is the PM Surya Ghar Muft Bijli Yojana?
This flagship scheme by the Ministry of New and Renewable Energy (MNRE) supports households in adopting rooftop solar systems with the help of central government subsidies and state-specific incentives or PM Surya Ghar Financial assistance.
Central Financial Assistance (CFA) – What You Get from the Union Government
Under the scheme, the central government offers direct subsidies to eligible households:
Subsidy Rates (as per 2025 guidelines):
- Up to ₹30,000 per kW for systems up to 3 kW
- Additional ₹18,000 per kW for systems between 3–10 kW
- Maximum subsidy: ₹1,18,000 per household
Eligibility for Central Subsidy:
- Residential use only (not commercial)
- Individual households with an approved net-metering agreement
- Must apply through the official National Rooftop Solar Portal
State Financial Assistance – Additional Benefits by State Governments
Many Indian states provide extra support beyond the central assistance. Here are some examples:
Delhi (Example):
- Additional subsidy of ₹2,000 per kW (up to 10 kW)
- Fast-track approval process through DISCOMs
Maharashtra:
- Offers incentives based on household income slabs
- Free installation for BPL (Below Poverty Line) families
Gujarat:
- Offers up to ₹20,000 per household for systems under 3 kW
Tamil Nadu, Kerala, Karnataka, and others also offer:
- Low-interest solar loans
- Additional rebates on equipment
- Waived processing or inspection fees
Note: State subsidies vary. Always check with your local DISCOM or renewable energy agency.
How Central and State Subsidies Work Together
These subsidies are stackable — meaning you can claim both.
Example Calculation (for a 3 kW system in Delhi):
- Central subsidy: ₹30,000 × 3 = ₹90,000
- State subsidy: ₹2,000 × 3 = ₹6,000
- Total subsidy benefit: ₹96,000
- Actual cost to homeowner: ₹50,000–₹60,000 (depending on installer and system)
Benefits of the Scheme
- 300 units/month free electricity
- Lower upfront installation costs
- Return on investment in 3–5 years
- Increase in property value
- Reduced carbon footprint
How to Apply for Subsidy (Step-by-Step)
1. Visit the official portal:
2. Register and Submit Application
- Provide property details and DISCOM information
- Upload documents (electricity bill, ID proof, etc.)
3. Select Empanelled Vendor
- Choose an approved solar installer
4. System Installation & Net-Metering
- Installation is done as per MNRE standards
5. Inspection & Subsidy Disbursal
- Post-inspection, subsidy is credited to your bank account
Documents Required
- Aadhar Card
- Recent electricity bill
- Property ownership proof
- Net metering agreement
- Bank details (for subsidy transfer)
Bank EMI Options Under PM Surya Ghar Muft Bijli Yojana
To make rooftop solar installations more accessible, several banks across India offer EMI-based financing options under the PM Surya Ghar Muft Bijli Yojana. These loans are designed to cover the upfront costs, allowing homeowners to repay in affordable monthly installments which can also be called as PM Surya Ghar Financial Assistance.
Key Features of Bank Loans:
- Loan Amount: Up to 90% of the project cost
- Interest Rates: Starting from 6.50% per annum, varying based on the bank and applicant’s credit score
- Tenure: Up to 10 years (120 months)
- Processing Fees: Often waived or minimal
- Collateral: Generally not required for loans up to ₹2 lakh
State-Wise Bank EMI Options:
1. Gujarat:
- Banks: State Bank of India (SBI), Bank of Baroda
- Loan Amount: Up to ₹10 lakh
- Interest Rate: Starting from 6.50% per annum
- Tenure: Up to 10 years
- Special Note: Gujarat leads in rooftop solar installations, with over 3.36 lakh systems installed .
2. Maharashtra:
- Bank: Bank of Maharashtra
- Loan Amount:
- Up to 3 kW: ₹2 lakh
- 4 kW to 10 kW: ₹10 lakh
- Interest Rate:
- Up to 3 kW: 7% per annum
- Above 3 kW: 9.50% to 10.30% per annum, based on credit score
- Tenure: Up to 10 years
- Processing Fees: Nil .
3. Tamil Nadu:
- Banks: Indian Bank, Canara Bank
- Loan Amount: Up to ₹2 lakh
- Interest Rate: Approximately 7% per annum
- Tenure: Up to 10 years
- Special Note: Indian Bank offers loans under the PM–Surya Ghar: Muft Bijli Yojana Roof Top Solar Loan Scheme .
4. Tripura:
- Banks: Multiple banks participating
- Loan Disbursed: ₹1.75 crore across 15 banks
- Special Note: The state aims to solarize 50,000 homes by March 2027, with subsidies up to ₹19,800 per kilowatt .
5. Nationwide Options:
- Banks: State Bank of India (SBI), Bank of Baroda, Punjab National Bank (PNB), Union Bank of India
- Loan Amount: Up to ₹10 lakh
- Interest Rates: Starting from 6.50% per annum
- Tenure: Up to 10 years
- Special Features:
- No foreclosure charges
- Floating & fixed rate options
- No income documents required for loans up to ₹2 lakh .
How to Apply for Bank Loans:
- Visit the Official Portal: https://pmsuryaghar.gov.in
- Register and Submit Application: Provide property details and DISCOM information.
- Select Empanelled Vendor: Choose an approved solar installer.
- System Installation & Net-Metering: Installation is done as per MNRE standards.
- Inspection & Subsidy Disbursal: Post-inspection, subsidy is credited to your bank account.
By leveraging these EMI options, homeowners can significantly reduce the upfront cost of solar installations, making clean energy more accessible and affordable.
Common FAQs
Can I install more than 3 kW?
Yes, but the subsidy caps at 10 kW (central) and varies by state beyond that.
Can I apply for both state and central subsidies?
Yes, as long as your state offers an additional subsidy scheme.
How long does it take to receive the subsidy?
Typically within 30–60 days after final inspection and net-metering activation.
Conclusion: Don’t Miss Out on Free Power
The PM Surya Ghar Muft Bijli Yojana makes going solar affordable and accessible for millions. With both state and central financial assistance, now is the perfect time to invest in a rooftop solar system for your home. Not only will you save money, but you’ll also contribute to a greener India.
Take Action Today
Visit the PM Surya Ghar Portal and begin your application. Check with your local DISCOM to explore additional state-specific benefits and let others know about PM Surya Ghar Financial Assistance.
