PM Surya Ghar: Rooftop Solar Cost and Subsidy for Homes (2026)

Here is the number that confuses most people first: the PM Surya Ghar subsidy does not grow with the size of your system. It is generous for the first three kilowatts and then it simply stops. That one rule shapes every sensible decision a homeowner makes — because a 3 kW system collects the full ₹78,000, while a 10 kW system collects exactly the same ₹78,000 and pays full price for the other seven kilowatts. Understanding where the money is, and where it is not, is the whole game.

PM Surya Ghar: Muft Bijli Yojana is the central government's rooftop solar scheme for residential consumers, launched in 2024 and running through the national portal. It combines a direct subsidy paid into the homeowner's bank account with a streamlined application, a vendor network and access to low-cost loans. This guide sets out what a home system actually costs in October 2026, how the subsidy is calculated, a worked 3 kW budget whose lines add up, what pushes the price up or down, and how to keep the bill honest. Figures here are indicative planning numbers; the scheme's rates and rules are set by the government and must be confirmed on the official portal before you commit.

How the subsidy is calculated

The central subsidy under PM Surya Ghar is paid in slabs tied to system size, not as a flat percentage. The first two kilowatts attract ₹30,000 each; the third kilowatt attracts ₹18,000; and anything above three kilowatts attracts nothing more from the central scheme. The arithmetic is simple and worth memorising, because it is the single biggest lever on your net cost.

Two riders matter. First, some special-category states and Union Territories receive a higher ceiling, and many states run their own additional subsidy on top of the central one, so the figure reaching your account may be larger — this is where the official portal and your DISCOM are the only reliable source. Second, the subsidy is paid after the system is installed, inspected and the net meter is set, directly into your bank account; you pay the vendor the full amount first (often with a scheme-linked loan) and the subsidy follows. Budget for the gross cost and treat the subsidy as a reimbursement, not an upfront discount.

What a 3 kW system actually costs: a worked budget

The table below breaks a typical 3 kW grid-connected rooftop system into its real line items and totals them, so the subsidy can be subtracted from a number that is built up honestly rather than guessed. The figures are indicative October 2026 planning bands for a standard residential installation with mono PERC or similar modules, a string inverter and a galvanised mounting structure; they vary by brand, roof type, city and quantity. The lines add up to the gross cost; the subsidy is then subtracted to give the net.

At the bottom and top of the price band the same 3 kW system runs from about ₹1.5 lakh gross (budget components, simple flat roof, competitive market) to about ₹2.25 lakh gross (premium modules and inverter, difficult roof, elevated structure). After the ₹78,000 central subsidy that is roughly ₹72,000 to ₹1.47 lakh net — before any state subsidy, which can reduce it further. The net-cost table below applies the same logic across common home sizes.

What the system generates, and the roof it needs

A rooftop system in most of India generates roughly 4 to 4.5 units (kWh) per installed kilowatt per day, averaged across the year, so a 3 kW system produces about 12–13 units a day, or roughly 360–400 units a month. For a family whose monthly consumption is in that range, a 3 kW system can offset most of the bill, with net metering banking daytime surplus against evening use. It needs shadow-free roof: plan on about 8–10 m² (roughly 90–110 sq ft) of clear, strong, well-oriented roof per kilowatt, ideally facing south with a tilt close to the local latitude.

Payback depends on your tariff and how much of the output you use yourself rather than export, because self-used units save the full retail tariff while exported units earn a lower feed-in credit in most states. At ₹7–9 per unit and a net 3 kW system cost around ₹1.17 lakh, a household that uses most of its daytime generation typically recovers the cost in roughly 4 to 7 years, after which the electricity is close to free for the remaining life of the panels (manufacturers commonly warrant performance for 25 years). Treat that range as indicative; a home that is empty all day and exports most of its output pays back more slowly.

What changes the price

• System size — the biggest factor; per-kW cost falls as the system grows, while the subsidy favours the first 3 kW.
• Module and inverter brand — premium tier-1 modules and reputed inverters cost more but perform and last better.
• Roof type and height — a simple accessible flat terrace is cheapest; sloped, tin, or tall roofs need special structures and more labour.
• Structure height — an elevated or walkable structure that keeps the terrace usable underneath costs more than a low-tilt frame.
• Cable runs and electrical distance — a long run from roof to meter adds cable, conduit and voltage-drop cost.
• Net-metering and DISCOM charges — application fees, meter cost and any load-enhancement vary by state and utility.
• Shading and site work — trees, water tanks or parapets that force extra structure or micro-inverters push the price up.
• GST and any financing cost — scheme-linked loans reduce upfront outgo but add interest over the tenure.

How to save without cutting corners

• Size to the subsidy and your bill — for most urban homes 3 kW captures the full ₹78,000 and offsets a typical bill; go bigger only if your consumption truly justifies it.
• Cut the load first — 5-star inverter ACs, BLDC fans, LED lighting and a solar water heater shrink the system you need and improve payback.
• Apply through the national portal and a DISCOM-empanelled vendor — this is what unlocks the subsidy; off-portal deals may be cheaper but forfeit it.
• Get three itemised quotes on the same scope — compare module brand, inverter, structure and warranty line by line, not just the bottom figure.
• Insist on tier-1 modules and a reputed inverter — the inverter is the part most likely to need replacement, so its warranty matters.
• Check the state top-up — several states add their own subsidy; confirm it before signing so you budget the real net cost.
• Keep the terrace usable — a slightly taller structure that preserves the roof for drying and sitting is often worth the small premium.
• Plan backup separately — if power cuts are a problem, price a hybrid inverter and battery as a distinct decision, not a default add-on.

Frequently asked questions

How much subsidy will I get under PM Surya Ghar?

The central subsidy is ₹30,000 per kW for the first 2 kW and ₹18,000 for the third kW, capped at ₹78,000 for any system of 3 kW or more. Some states add their own subsidy on top, and a few special-category regions have a higher ceiling. Confirm the current figures for your state on pmsuryaghar.gov.in, because the government can revise them.

Is a 3 kW system enough for my home?

For a household using about 300–400 units a month, a 3 kW system — generating roughly 360–400 units a month on average — can offset most of the bill with net metering. If your consumption is much higher, size up, but remember the subsidy does not grow beyond 3 kW, so the extra capacity is at full price. Size the system from your last 12 months of bills, not a round number.

Do I pay the full cost first and get the subsidy later?

Yes. You pay the vendor the gross cost (often with a scheme-linked loan), the system is installed and inspected, the net meter is set, and the central subsidy is then credited to your bank account. Budget for the full gross amount and treat the subsidy as a reimbursement that follows commissioning.

Does the system work during a power cut?

A standard grid-tied rooftop system shuts off during a grid outage for safety and has no battery, so it does not power the home during a cut. If you need backup, you need a hybrid inverter and a battery, which are priced separately and add significantly to the cost. Decide on backup as its own line item rather than assuming solar provides it.