PM Surya Ghar Muft Bijli Yojana: Apply Online, Eligibility, Installation Subsidies, Benefits

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The Finance Minister, Nirmala Sitharaman, announced the launch of the ‘Rooftop Solar Scheme’ or the ‘PM Surya Ghar Muft Bijli Yojana’ in the 2024-25 budget. This scheme provides subsidies for installing rooftop solar panels for residential houses and using solar energy for electricity, which will help save money on electricity bills. This article covers everything about the Rooftop Solar Scheme or PM Surya Ghar Muft Bijli Yojana.

This Finance Minister announced a new rooftop solar scheme in the Budget 2024-25. Subsequently, the Prime Minister launched the ‘PM Surya Ghar Muft Bijli Yojana’ on 15 February 2024. Solar panels are installed in houses under this scheme to supply power to households and additional money for excess electricity output. The Central Government will provide substantive subsidies directly to people’s bank accounts and heavily concessional bank loans to ensure that there is no cost burden on the people. The government subsidy will cover up to 40% of the cost of installation of the solar panels. 

This scheme will help poor and middle-class households save up to Rs. 15,000 to Rs. 18,000 crores annually by getting free solar electricity and selling surplus power to electricity distribution companies. Under this scheme, the government aims to install solar panels in one crore homes throughout the country. This scheme will help the government save around Rs. 75,000 crore per year for electricity costs.

The Rooftop Solar Yojana, or the PM Surya Ghar Muft Bijli Yojana, aims to provide 300 units of free electricity every month to light up one crore households. The objective of this scheme is to reduce the electricity costs of the house by installing rooftop solar panels and using solar energy.

This scheme aims to decrease dependency on traditional energy sources by installing rooftop solar panels in houses and moving towards sustainable energy practices. It pushes for clean and sustainable energy.

• Savings of up to Rs. 15,000 to Rs. 18,000 crores annually from free solar electricity and selling the surplus power to the distribution companies for charging electric vehicles
• Charging of electric vehicles
• Entrepreneurship opportunities for many vendors for the supply and installation of solar panels
• Employment opportunities for the youth with technical skills in the installation, manufacturing and maintenance of solar panels
• Reduction of electricity costs for the government.
• Increased use of renewable energy.
• Reduction in carbon emissions.

• Applicants should be residents of India
• Applicants should belong to poor and middle-income households
• Applicants should have their own residence with a roof suitable for installing solar panels.
• Applicants must have a valid electricity connection.
• Applicants should not have availed of any other subsidy for solar panels.

Under the Rooftop Solar Scheme, the government will provide the below subsidies for installing solar panels:

• For up to 2 kW - Rs. 30,000 per kW 
• For additional capacity up to 3 kW - Rs. 18,000 per kW 
• Total subsidy for systems larger than 3 kW - Maximum Rs. 78,000

The suitable rooftop solar plant capacity for households is as follows:

Average Monthly
Electricity Consumption (units)Suitable Rooftop Solar Plant CapacitySubsidy 

                                      0-1501-2 kWRs. 30,000 to Rs. 60,000

                                   150-3002-3 kWRs. 60,000 to Rs. 78,000

                                            >300Above 3 kWRs. 78,000

The subsidy for Group Housing Society (GHS)/ Resident Welfare Association (RWA) is Rs. 18,000 per kW for common facilities, including EV charging up to 500kW capacity at Rs.3 per kW per house. The upper limit includes individual rooftop plants installed by individual residents in the GHS or RWA. 

Photovoltaic panels, also known as rooftop solar panels, are installed on the roofs of houses or buildings and connected to the central power supply unit. This installation decreases reliance on grid-connected electricity, leading to cost savings. 

The entire process is more financially sound via Net Metering, where any surplus energy or electricity generated by the solar panels is sold to the electricity distribution companies for a reasonable amount. Thus, it substantially reduces overall electricity bills by balancing what is consumed and what is contributed. 

Below are the steps to apply for PM Surya Ghar Muft Bijli Yojana:

Step 1: Visit the official website of PM Surya Ghar Muft Bijli Yojana.

Step 2: Click on the ‘Apply for Rooftop Solar’ button available on the left-hand side of the homepage.

Step 3: Select the state, district, and electricity distribution company, enter your customer account number, and click on ‘Next’.

Step 4: Enter your mobile number and email, and follow the instructions to complete the registration.

Step 5: Log in with your customer account number and mobile number.

Step 6: Apply for the ‘Rooftop Solar’ as per the form.

Step 7: After applying for Rooftop Solar, wait for the feasibility approval from DISCOM. Once the feasibility approval gets approved, install the plant through a registered vendor in your DISCOM.

Step 8: Submit the plant details and apply for a net meter after the installation is over.

Step 9: After the installation of the net meter and DISCOM inspection, they will generate a commissioning certificate from the portal.

Step 10: Once you get the commissioning report, submit your bank account details and a cancelled cheque by logging into the PM Surya Ghar Muft Bijli Yojana portal. You will receive the subsidy in your bank account within 30 days.

• Proof of identity
• Proof of address
• Electricity bill
• Roof ownership certificate

How to apply for PM Surya Ghar Muft Bijli Yojana?

You can apply for the Rooftop Solar Scheme or the PM Surya Ghar Muft Bijli Yojana by visiting the official website of PM Surya Ghar Muft Bijli Yojana and clicking on the ‘Apply for Rooftop Solar’ button.

What is Rooftop Solar Scheme?

The Rooftop Solar Scheme targets to install solar panels in one crore households to supply power and earn additional money for excess electricity output. This scheme will help poor and middle-class households to save up to Rs. 15,000 to Rs. 18,000 crores annually by getting free solar electricity and selling surplus power to electricity distribution companies. 

Is there a government scheme for free solar panels in India?

There is no government scheme for installing solar panels for free in India. However, the government announced the Rooftop Solar Scheme or the PM Surya Ghar Muft Bijli Yojana, which aims to install solar panels in houses and achieve solar energy generation and usage in households. Under this scheme, the government provides a subsidy to install solar panels ranging from Rs. 30,000 to Rs. 78,000, depending on the solar plant capacity.

What is the latest solar subsidy?

The newly announced PM Surya Ghar Muft Bijli Yojana provides a subsidy to install solar panels ranging from Rs. 30,000 to Rs. 78,000, depending on the solar plant capacity.

Can the solar installation be installed in a new house if I shift my residence?

Yes, the solar installation is easy to be dismantled and reassembled elsewhere. Thus, it can be shifted to your new residence.

What type of roof is suitable for Rooftop solar installation?

Rooftop solar PV systems can be installed on a type of roof having a sufficient load bearing capacity.