Key takeaways
- An eligible home system receives ₹30,000 at 1 kW, ₹60,000 at 2 kW and up to ₹78,000 from 3 kW onwards.
- The grant applies to domestic residential electricity connections. Commercial and industrial connections do not qualify.
- You need a registered vendor and DCR modules made with Indian cells for a subsidised installation.
- The scheme implementation period runs to 31 March 2027; complete the portal and DISCOM steps in good time.
If your electricity bill rises sharply during summer, solar can reduce the units you buy from the grid. The first question is usually the upfront cost. PM Surya Ghar: Muft Bijli Yojana helps eligible households with central financial assistance, but the amount depends on the system size and the connection category.
The grant is paid to the applicant's verified bank account after the installation and required DISCOM steps are recorded on the national portal. It is not an instant discount at the panel shop. You still need to arrange payment for the installation, check the documents and allow time for inspection. Keep copies of every approval.
This guide explains the subsidy slabs, roof and equipment conditions, likely generation and the application sequence. Use it alongside a survey of your roof and recent electricity bills. Ray2Volt can size a home rooftop system from those details rather than choosing a capacity only to reach a subsidy slab.
How much subsidy each home system receives
MNRE calculates the residential grant by installed DC capacity. The first two kilowatts receive ₹30,000 per kW. The third adds ₹18,000. Once the system reaches 3 kW, the central assistance stops increasing even if you add more panels.
- 1 kW: The grant is ₹30,000. This may suit a small home using lights, fans, a refrigerator and a television, subject to its actual bill and roof.
- 2 kW: The grant is ₹60,000. A home with regular appliance use and occasional single-room air conditioning may need this capacity, but check consumption first.
- 3 kW: The third kilowatt adds ₹18,000, taking the grant to its ₹78,000 cap.
- More than 3 kW: A 4 kW to 10 kW home system still receives at most ₹78,000. Extra capacity may serve several air conditioners or an EV charger; it does not raise the central grant.
For a resident welfare association or group housing society, common-area solar can receive ₹18,000 per kWp, subject to the scheme's aggregate 500 kW cap per society. Typical common loads include lifts, booster pumps and staircase lighting. Confirm the association's eligibility and the proposed common-area capacity on the portal.
How the payment reaches you: After commissioning and net-meter records are accepted, the assistance is released through Direct Benefit Transfer to the applicant's verified bank account. Keep your account details accurate; a vendor discount is a different arrangement.
Check your connection, roof and vendor
A home address alone does not establish eligibility. Check the tariff category on your electricity bill and the rights to the roof before paying a deposit. These conditions also affect whether the DISCOM can approve the proposed system.
- Domestic connection: Your active connection must carry a residential tariff with the local DISCOM, such as APSPDCL in southern Andhra Pradesh. A shop, clinic, workshop, industrial or agricultural connection cannot claim this home grant.
- Roof access and structure: You need legal ownership or lasting access rights to the terrace. The installer must check shade, usable area and whether the roof can support the mounting structure.
- Grid connection: The eligible installation must be on-grid or grid-interactive hybrid with an approved bi-directional net meter. A standalone off-grid battery setup without grid synchronisation does not qualify.
- Registered installer: Choose a vendor listed for your area on the official PM Surya Ghar portal. A self-installation or an unregistered trader's system cannot be used for the subsidy claim.
Why subsidised panels must meet DCR rules
DCR stands for Domestic Content Requirement. For this scheme, the cells that generate electricity and the assembled modules must both be made in India. The installer should identify the approved model and supply traceable documentation for the modules fitted on your roof.
Some non-DCR modules are assembled in India using imported cells. They may appear similar to DCR products and can cost less, but they do not meet the domestic-content condition for PM Surya Ghar. Ask for the module model and DCR evidence before accepting a lower quote. If the installed serial numbers do not match the submission, your claim may fail at verification.
As a broad price guide, DCR panels cost roughly ₹9 to ₹12 per Wp, or ₹9,000 to ₹12,000 per kWp, more than comparable non-DCR panels, depending on brand. At 3 kW, compare that extra hardware cost with the possible ₹78,000 grant using complete installed quotes. Roof work, inverter choice and approval costs also affect what you pay.
Business connections: PM Surya Ghar assistance is for eligible domestic consumers. Commercial, industrial and institutional connections cannot claim it. If your connection is for a business, review commercial solar options. Accelerated depreciation may apply at 40% on written down value under section 33 of the Income-tax Act, 2025; confirm your eligibility and the current rate with your chartered accountant.
Size the system from your bill and usable roof
Start with your last year of bills and the space that stays clear of shade. A 3 kW system is not automatically the right purchase simply because it reaches the subsidy cap. Your daytime use, sanctioned load, roof direction and nearby obstructions can all change the useful size.
In this part of Andhra Pradesh, a planning estimate is 4 to 4.5 units per kW per day on an annual average, or about 1,400 to 1,600 units per kW per year. Allow roughly 80 to 100 sq ft of shade-free roof per kW. These are approximations; an audit should account for shade, layout and equipment losses.
The table gives indicative capacity comparisons. The bill bands help frame a first discussion; your tariff, consumption pattern and site survey decide the final recommendation.
| System size | Approximate clear roof | Central home grant | Estimated units each month | Indicative bill before solar |
|---|---|---|---|---|
| 1 kW | 80 to 100 sq ft | ₹30,000 | 120 to 135 units | ₹800 to ₹1,500 |
| 2 kW | 160 to 200 sq ft | ₹60,000 | 240 to 270 units | ₹1,800 to ₹3,000 |
| 3 kW | 240 to 300 sq ft | ₹78,000, the cap | 360 to 405 units | ₹3,200 to ₹5,500 |
| 4 kW | 320 to 400 sq ft | ₹78,000, capped | 480 to 540 units | ₹5,000 to ₹7,500 |
| 5 kW | 400 to 500 sq ft | ₹78,000, capped | 600 to 675 units | ₹7,000 to ₹11,000 |
| 10 kW | 800 to 1,000 sq ft | ₹78,000, capped | 1,200 to 1,350 units | ₹15,000+ |
For homes, typical payback after the subsidy is 4 to 5 years, depending on the site audit, installed cost, generation and the units your bill actually offsets. Treat that as a planning range, not a promised result. Panels may remain in use beyond payback, but maintenance and ongoing fixed bill charges do not disappear.
How the DISCOM meter affects the claim
A bi-directional meter records the electricity you import from the DISCOM and the surplus your system exports. Your local utility, such as APSPDCL, must inspect the installation and complete the required meter and commissioning records. Until then, do not assume the system can export or that the grant is ready to release.
Exported units can offset imported units under the applicable state billing rules. If exports cover your measured imports for a billing period, energy charges may fall substantially, but fixed charges and applicable duties can remain. Surplus treatment and carry-forward rules should be checked on your current DISCOM bill and approval terms. Our Andhra Pradesh net-metering guide explains the readings in detail.
Match capacity to sanctioned load: If your connection is sanctioned for 2 kW and you want a 3 kW solar plant, ask the DISCOM about raising the sanctioned load before installation. The larger plant and its ₹78,000 subsidy slab do not remove that grid approval requirement.
Apply before the 31 March 2027 scheme end
The notified PM Surya Ghar implementation period runs to 31 March 2027 (MNRE guidelines as of 23 Sep 2026).
That date is the stated implementation end, not a promise that every late application will be processed in time. Portal checks, site work and DISCOM meter availability all take time. Scheme terms and funding can also change through notifications, so confirm the current position before committing money.
Register on the national portal, obtain feasibility approval, select an empanelled vendor, complete the installation, then finish inspection, net-meter testing and commissioning uploads. Our step-by-step application guide follows those stages. Before signing a proposal, also read the equipment warranty guide and ask who will handle future service.
Some nationalised banks offer collateral-free loans for eligible home systems up to 3 kW. The cited PM Surya Ghar rate was the repo rate plus 0.5%, or 5.75% annually as of 28 July 2026, with a 10-year tenure (MNRE/PIB, 28 Jul 2026). Other bank offers vary. Compare the current rate, EMI and total repayment with realistic bill savings before borrowing. Our on-grid home solar page explains the installation route.
Check current terms: Subsidy and loan figures here are indicative, and schemes can change. Confirm your eligibility, vendor and current portal rules for your own connection. Ray2Volt can help with a site audit and paperwork; we do not give tax or investment advice.
Frequently asked questions
Does a 5 kW or 10 kW home system get more than ₹78,000?
No. The central home grant reaches its ₹78,000 cap at 3 kW. You can install 5 kW or 10 kW if your roof, sanctioned load and approvals allow it, but the grant does not rise with that extra capacity.
Can a shop, factory or rented office claim this subsidy?
No. PM Surya Ghar assistance applies to eligible domestic residential connections. Commercial, industrial and institutional connections are outside this home grant. A business can discuss solar savings and any applicable tax treatment with its chartered accountant.
Why must my panels be DCR compliant?
The scheme requires cells made in India and modules assembled in India. Ask your registered vendor for the model and serial-linked DCR documents. Imported-cell or other non-DCR panels make the installation ineligible for this grant.
When will the subsidy reach my bank account?
Payment follows DISCOM inspection, net-meter installation and completion of the portal records. It is sent through Direct Benefit Transfer to the applicant's verified bank account. There is no fixed credit date, so check the account details and portal status.
Can I install the panels myself and still claim the grant?
No. The work must go through a registered, empanelled vendor shown on pmsuryaghar.gov.in. That vendor supplies the drawings, DCR records and safety documents and helps arrange the DISCOM inspection.
Ray2Volt Solar Private Limited
We design, install, and service rooftop solar for homes and businesses across Tirupati district and Andhra Pradesh, from PM Surya Ghar residential systems to commercial and industrial plants. Every enquiry starts with a free power audit.
Check your home subsidy and system size
Share your electricity bill and roof details with Ray2Volt. We can assess capacity, DCR equipment and the DISCOM steps for your application.
