PM-Surya Ghar Scheme: MNRE Details Rooftop Solar Subsidy Guidelines For Residential Consumers

The Ministry of New and Renewable Energy (MNRE) has issued operational guidelines for implementing the Central Financial Assistance (CFA) component for residential consumers under the PM-Surya Ghar: Muft Bijli Yojana. The scheme, approved by the Union Cabinet on February 29, 2024, has a total financial outlay of ₹75,021 crore and aims to install rooftop solar (RTS) systems in one crore residential households across India by FY 2026–27.

The programme is designed to help households generate clean electricity and reduce their monthly power bills. It aims to provide up to 300 units of free or low-cost electricity every month to eligible families. Over the 25-year lifetime of the installed systems, the scheme is expected to generate around 1,000 billion units of green electricity and help reduce carbon emissions by about 720 million tonnes.

Of the total financial allocation, ₹65,700 crore has been earmarked for Central Financial Assistance to residential consumers. Under the standard subsidy structure, households receive ₹30,000 per kW for the first 2 kW of rooftop solar capacity, followed by ₹18,000 for an additional 1 kW. The maximum CFA for an individual household is limited to 3 kW, resulting in a maximum subsidy of ₹78,000.

Higher subsidy rates are available for special category states and Union Territories. These include North-Eastern states, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, Ladakh, Andaman & Nicobar Islands and Lakshadweep. Consumers in these regions can receive ₹33,000 per kW for the first 2 kW and ₹19,800 for the third kW.

Group Housing Societies and Residential Welfare Associations are also covered under the programme. They can receive CFA of ₹18,000 per kW for rooftop solar systems installed for common facilities, subject to a capacity limit of 500 kW.

The guidelines clarify that the residential subsidy is available only under the capital expenditure (capex) model, where consumers initially finance the installation. Another important requirement is compliance with the Domestic Content Requirement. Solar modules used for subsidised installations must be domestically manufactured using domestically manufactured solar cells.

The National Portal has been introduced to simplify the application and implementation process. Consumers can apply online, select registered vendors of their choice and agree on installation prices directly with them. The system also allows consumers to track the progress of their applications without depending on DISCOM-led rate discovery or vendor empanelment restrictions.

The scheme also facilitates collateral-free, low-interest loans through banks, with financing options integrated into the Jan Samarth portal. Earlier programmes, including Grid Connected Rooftop Solar Phase II, have been subsumed into PM-Surya Ghar. Subsequent administrative measures have also extended timelines for processing certain Phase II claims into late 2026, supporting a smoother transition to the new framework.