How to Apply for Solar Panel Subsidy

What the subsidy covers

PM-Surya Ghar: Muft Bijli Yojana has been approved with a total outlay of Rs.75,021 crore for installing rooftop solar and providing free electricity up to 300 units every month for One Crore households. The subsidy is a Central Financial Assistance (CFA) paid directly to your bank account after installation.

The scheme provides a CFA of 60% of system cost for 2 kW systems and 40% of additional system cost for systems between 2 to 3 kW capacity, capped at 3 kW. At current benchmark prices this means Rs 30,000 subsidy for 1 kW system, Rs 60,000 for 2 kW systems and Rs 78,000 for 3 kW systems or higher.

A 3 kW system will be able to generate more than 300 units a month on an average for a household. Through this scheme, households will be able to save electricity bills as well as earn additional income through sale of surplus power to DISCOMs.

Who can apply

The scheme is for residential households. You need a roof that you own or have permission to use, a valid electricity connection, and a bank account for the subsidy. The households will apply for subsidy through the National Portal and will be able to select a suitable vendor for installing rooftop solar.

How to apply step by step

1. Register on the National Portal with your mobile number and consumer number.
2. Apply for the subsidy by filling the online form and uploading documents.
3. Get approval from your DISCOM after they verify your application.
4. Select a vendor from the portal and get the system installed.
5. Submit the installation details and request the subsidy.
6. Receive the subsidy in your bank account after inspection.

With all credentials entered correctly on the National Portal, the average time taken in processing the CFA is around 15 days after the redemption request made by the consumer.

Documents you need

You need proof of identity, proof of address, a copy of your electricity bill, a bank account passbook or cancelled cheque, and a photograph of your roof. The portal will tell you the exact list when you apply.

Financing options

If you cannot pay the full cost upfront, collateral-free loans are available from nationalized banks at a concessional interest rate of repo-rate plus 50 bps, i.e., 5.75% per annum for the present, with a tenure of 10 years.

What it costs after subsidy

A 2 kW home solar system in India has a starting price range, with installation, of ₹1,75,000 to ₹2,13,000. The 3 kW solar system starting price in India, with installation, ranges between about Rs. 2.15 lakh and Rs. 2.47 lakh. After the subsidy, a 2 kW system costs about ₹1,15,000 to ₹1,53,000, and a 3 kW system about ₹1,37,000 to ₹1,69,000.

Why apply now

The rise in demand is in line with the progression of summer conditions across the country, with electricity consumption witnessing a significant growth of 8.9% during the month of April 2026. Installing rooftop solar now can reduce your dependence on the grid during peak summer months.

How the subsidy is calculated

The subsidy is calculated on the benchmark cost set by the Ministry of New and Renewable Energy, not on the price quoted by your installer. For a 2 kW system, the subsidy is 60% of the benchmark cost. For a 3 kW system, it is 60% for the first 2 kW and 40% for the additional 1 kW. The maximum subsidy is capped at Rs 78,000 for 3 kW or higher.

What happens after you apply

Once you submit your application on the National Portal, your DISCOM reviews it. If everything is in order, you receive a technical feasibility approval. You then have a limited time to get the system installed by a vendor registered on the portal. After installation, the vendor submits the completion report, and the DISCOM inspects the system. Only after inspection is the subsidy released to your bank account.

Common mistakes to avoid

Many applications are delayed because of incorrect consumer numbers, mismatched names on the electricity bill and bank account, or uploading unclear documents. Check every detail before you submit. Also, do not pay the full amount to the vendor before the subsidy is approved. The vendor should deduct the subsidy amount from the total cost, and you pay only the balance.

State-level variations

The central subsidy is the same across India, but some states offer additional subsidies on top of the central CFA. The application process on the National Portal is uniform, but your DISCOM may have its own verification steps. Check your state's renewable energy department website for any extra benefits.

How to check your application status

You can track your application status on the National Portal using your application ID. The portal shows each stage: submitted, approved, installation pending, inspection pending, and subsidy released. If your application is stuck at any stage, contact your DISCOM or the vendor.

What if you rent your home?

If you live in a rented house, you need written permission from the owner to install rooftop solar. The subsidy is paid to the owner of the house, not the tenant. If you are a tenant, discuss the arrangement with your landlord before applying.

What if you live in a housing society?

If you live in a flat in a housing society, you need permission from the society's managing committee to install panels on the common roof. The subsidy is available for individual flats, but the installation must comply with the society's rules. Some societies install a common system for all residents, which is also eligible for the subsidy.

How to choose a vendor

The National Portal lists empanelled vendors for your area. You can compare their quotes and ratings on the portal. Choose a vendor who is registered on the portal, as only they can submit the installation details for subsidy release. Do not pay any advance before signing a formal agreement.

What documents does the vendor need?

The vendor will need a copy of your approval letter, your electricity bill, and your bank account details. They will also need access to your roof for a site survey before installation. After installation, they will upload photographs and the completion certificate to the portal.

How long does the whole process take?

The time from application to subsidy release varies by state and DISCOM. The average time for processing the CFA after the redemption request is around 15 days. The installation itself can take one to three days, depending on the system size and roof condition. Overall, expect the process to take four to eight weeks from application to subsidy credit.

What if your application is rejected?

If your application is rejected, the portal will show the reason. Common reasons are incomplete documents, incorrect consumer number, or roof not suitable for solar. You can correct the issue and reapply. If you disagree with the rejection, you can contact your DISCOM's grievance redressal cell.

Can you apply for a system larger than 3 kW?

Yes, you can install a system larger than 3 kW, but the subsidy is capped at 3 kW. For a 5 kW system, you get the same subsidy as for 3 kW, which is Rs 78,000. The additional 2 kW does not attract any central subsidy.

What is the benchmark cost?

The benchmark cost is the price set by the government for calculating the subsidy. It is revised from time to time. The subsidy is a percentage of this benchmark cost, not of the actual price you pay. If your installer quotes a higher price, the subsidy remains the same.

How is the subsidy paid?

The subsidy is paid directly to your bank account through Direct Benefit Transfer (DBT). You need to provide your bank account details on the portal. The account must be in your name and linked to your Aadhaar for DBT.

What if you move house after installation?

The subsidy is tied to the house, not the person. If you sell the house, the solar system and the subsidy benefit pass to the new owner. You cannot transfer the subsidy to a new house.

What about maintenance?

The vendor is responsible for maintenance during the warranty period, which is typically five years for the inverter and 25 years for the panels. After the warranty, you can enter into an annual maintenance contract with the vendor or another service provider.

How to get local quotes

If you want to compare prices from local installers, you can request quotes through this site. We pass your enquiry to independent installers in your area. They will contact you with quotes and help you with the subsidy application.