Aims to install rooftop solar systems in 1 crore households across India.

Subsidies of up to ₹78,000 for installing rooftop solar panels, making solar energy more affordable.

300 units of free electricity per month and the reduction of electricity bills.

Net metering and clean energy

MNRE-approved and ALMM-certified solar module manufacturing

One of the main advantages is the government-provided subsidy, which covers up to 60% for 2kW, 40% for 3kW and often up to ₹78,000 for 5kW systems. It rededuces installation costs for households. 

Another major benefit is the reduction in electricity bills. Households can save money by generating their own electricity. A 3kW system is estimated to save families up to ₹15,000 per year, with 70-90% reductions in electricity costs. Through Net Metering, households can sell excess energy generated to the grid, providing an additional source of income.

The scheme shifts residential electricity generation from fossil fuels to solar power, as sunlight is the main force to produce clean energy. By enabling households to generate their own electricity, the demand for coal-based thermal power is significantly reduced.

The usage of Solar energy reduces the use of water in power generation.

By reducing the dependence on thermal power plants, this initiative helps reduce emissions of sulfur dioxide and nitrogen oxides, leading to cleaner air, particularly in urban and rural areas. 

This scheme reduces dependency on the grid as households generate their own electricity.

They can satisfy up to 40–60% of their power needs using solar energy, reducing the amount of electricity purchased from the grid.

Through net metering, excess electricity generated during the day is sent back into the grid, credited to the household’s account, and deducted from the overall bill.

They can enjoy up to 300 units of free electricity monthly. 

As residential rooftop solar systems continue to mature, they provide better energy security, especially during peak load times, reducing the impact of grid outages.

Up to 150 units/month: 1–2 kW panels, ₹30,000–60,000 subsidy.

150–300 units/month: 2–3 kW panels, ₹60,000–78,000 subsidy

Above 300 units/month: 3+ kW panels, up to ₹78,000 max central subsidy.

Central Subsidy (CFA): Applicable nationwide to all homeowners who register on the National Portal. The central government provides 60% of the cost for systems up to 2 kW and 40% for 3 kW, ensuring a uniform subsidy structure.

State Subsidy Benefits: Several states offer additional “top-up” subsidies on top of the central amount, significantly reducing the net cost further. For example, in 2026, Uttar Pradesh offers an additional ₹15,000–₹30,000, while others like Delhi, Maharashtra, and Gujarat have specific incentives.

Combined Impact: A 3 kW system could see total subsidies exceed ₹1,00,000 in certain states (e.g., Gujarat with ₹78k central + ₹40k state), whereas it would only be ₹78,000 in states without extra incentives.

Applicants must be Indian citizens owning a house with a suitably strong roof for solar installation.

The scheme also covers Residential Welfare Associations (RWA) or Group Housing Societies (GHS) for common facility loads.

A valid residential electricity connection from a local distribution company (DISCOM) is required.

The applicant must not have previously availed of any other solar subsidy for the same property.

The system must be installed by a vendor registered on the official PM Surya Ghar portal.

The solar system must be connected via net metering.

Solar Panels (Photovoltaic Modules): These panels, typically made of silicon cells, are installed on the roof to absorb sunlight. They generate Direct Current (DC) electricity. To get the most electricity out of the 300 units, we need to be efficient. Using quality panels, like Alpex Nikko Topcon can help generate more power.

Inverter: The DC electricity generated by the panels is sent to an inverter, which converts it into Alternating Current (AC). This makes the energy suitable for powering household appliances.

Net Meter (Bi-directional Meter): When your solar system produces more electricity than you consume, the surplus power is exported to the grid. When the system produces less, you draw power from the grid. The net meter tracks this exchange, allowing you to pay only for the net electricity used.

Register: Apply on the National Rooftop Solar Portal.

Feasibility Check: The DISCOM (power distribution company) checks if the rooftop can support the system.

Installation: Hire an MNRE-registered vendor.

Net Metering & Inspection: The DISCOM installs a net meter and issues a commissioning certificate.

Subsidy Release: Upload installation details and bank account information to receive the subsidy directly

Panel Type: Monocrystalline PERC panels are recommended for 2026 due to higher efficiency (22%+) and superior performance in lower light. Bifacial Mono PERC panels (like those from Waaree) offer enhanced generation by using both sides.

Capacity: 550W–590W modules are the current standard, reducing the total number of panels needed compared to older 400W modules.

Space Requirement: Plan for roughly 80–100 sq. ft. per 1kW.

Subsidy Eligibility: The Central Government subsidy (part of PM Surya Ghar Yojana) is highest for the first 3kW, making a 3kW system highly cost-effective.

Vendor Registration Process
Solar installers and EPC companies can register through the official PM Surya Ghar portal by submitting business credentials, technical certifications, and GST details. Once verified, vendors become eligible to participate in installation projects under the scheme, ensuring they meet government quality and compliance standards.

Solar EPC Opportunities
The scheme opens strong opportunities for EPC (Engineering, Procurement, and Construction) companies to handle end-to-end rooftop solar installations. With rising residential demand, EPC players can scale operations by offering design, installation, and maintenance services across urban and semi-urban homes.

Demand Growth for Solar Panel Installation Government Scheme
With the government targeting 1 crore households, demand for rooftop solar systems is expected to grow rapidly. This creates a steady pipeline of residential projects, especially for certified installers and manufacturers supplying quality solar components.

How Solar Companies Can Benefit
Solar companies can benefit through increased project volume, government-backed trust, and subsidy-driven customer demand. Manufacturers and brands like Alpex Solar can strengthen their market presence by supplying high-quality panels and supporting large-scale residential adoption under the scheme.

Limited Rooftop Space: Urban, high-rise, and shared residential rooftops often lack adequate, unshaded area to accommodate the necessary number of panels for viable solar generation.

Initial Investment: Despite subsidy programs like PM-Surya Ghar, the high upfront capital cost for purchasing and installing solar systems remains a major barrier for many households.

State DISCOM Approvals: Variable, slow, and complex regulatory processes for obtaining net-metering and approvals from state Distribution Companies (DISCOMs) delay project completion.

PM Surya Ghar: Muft Bijli Yojana: This scheme provides a subsidy of ₹30,000 per kW up to 2 kW, and ₹18,000 per kW for additional capacity, capping total subsidy at ₹78,000 for residential households. It is designed to install 1 crore rooftop solar systems, reducing electricity bills and lowering carbon emissions.

Solar Rooftop Scheme (Phase II): This earlier scheme acts as the foundation, providing central financial assistance (CFA) of 40% for the first 3 kW and 20% for capacity beyond 3 kW. It focuses on grid-connected solar, allowing households to sell surplus electricity back to the grid.

Pradhan Mantri Suryoday Yojana : Announced on January 22, 2024, this scheme aims to install rooftop solar on 1 crore poor to middle-class households to reduce electricity bills and make them self-reliant. It works in conjunction with the Surya Ghar scheme to ensure widespread adoption of solar power across India’s residential sector.

Other Renewable Energy Initiatives: PM-KUSUM (Pradhan Mantri Urja Suraksha evam Utthaan Mahabhiyaan): This initiative provides financial support for farmers to install solar pumps and grid-connected solar power plants on barren land. Production Linked Incentive (PLI) Scheme for Solar PV Modules: This scheme boosts local manufacturing of high-efficiency solar modules to support India’s solar target, with an outlay of ₹14,007 crores.

• Capacity: Residential rooftop solar is expected to grow the fastest, with total installed capacity projected to reach 25–30 GW by FY27, driven by massive adoption in residential and small commercial sectors.
• Adoption: Supported by the PM Surya Ghar Muft Bijli Yojana, which reached over 23 lakh households by December 2025, the sector is targeting 1 crore households by 2026-2027.
• Potential: India has an immense, largely untapped technical potential of nearly 796 GW, with the government focusing on enabling easier financing and faster net-metering approvals to unlock this market.

Government renewable targets

• 500 GW Goal: Rooftop solar targets to achieve 500 GW non-fossil fuel capacity by 2030, with rooftop solar expected to contribute around 100 GW of that total.
• Financial Incentives: PM Surya Ghar scheme offers subsidies of up to ₹78,000 for 3 kW residential systems, backed by a ₹75,021 crore outlay.
• Manufacturing Boost: The Production Linked Incentive (PLI) scheme is enhancing domestic manufacturing of efficient solar modules, reducing dependence on imports, and lowering setup costs.

Impact on residential electricity

• Drastic Bill Savings: Households can reduce monthly electricity bills by 70–90% by integrating solar systems. Many report very low electricity bills through net metering.
• Energy Independence: Rooftop solar helps residents to overcome utility tariffs and grid outages, especially during summer months when generation is maximum.
• Improved ROI: With falling technology costs, improved high-efficiency panels, and subsidies, residential systems now provide a faster payback period of 3–5 years.