What the PM Surya Ghar subsidy actually pays in 2026 — and where it stops

The subsidy under PM Surya Ghar: Muft Bijli Yojana is a Central Financial Assistance (CFA) paid to the household by Direct Benefit Transfer after the system is commissioned. It is not a discount applied by the vendor, and it is not a loan.

The amounts

The structure approved by the Union Cabinet works in two bands:

• 60 per cent of system cost for the first 2 kW
• 40 per cent of the additional system cost between 2 kW and 3 kW

Applied to benchmark prices, this produces the figures households actually see:

• ₹30,000 for a 1 kW system
• ₹60,000 for a 2 kW system
• ₹78,000 for a 3 kW system or larger

The CFA is capped at 3 kW.

The cap is the important part

That last line is where most misunderstandings begin. A 5 kW system does not attract a subsidy proportionate to 5 kW. It attracts ₹78,000, the same as a 3 kW system.

The practical consequence is that the subsidy improves the economics of the first three kilowatts a great deal and the fourth and fifth not at all. Every kilowatt above 3 kW is bought at full price.

This does not mean a larger system is a bad decision. If your consumption genuinely justifies 5 kW, the additional capacity still generates units and still displaces tariff. It means the marginal economics change sharply at 3 kW, and a household should size on consumption rather than on the assumption that more capacity draws more support.

How and when it is paid

The household applies through the National Portal for Rooftop Solar and selects a registered vendor from it. The subsidy is redeemed after commissioning, and MNRE has stated that where credentials are entered correctly on the portal, the average time to process the CFA is around 15 days from the household's redemption request.

Because payment is by DBT into the household's own account, two things follow that are worth stating plainly:

• The household pays the vendor the full contracted amount. The subsidy arrives separately, afterwards.
• Any arrangement where a vendor offers to "handle" or "adjust" the subsidy in exchange for the household's portal credentials is outside the scheme's design.

State top-ups exist and are separate

Some states add their own assistance on top of the central amount. Delhi, for instance, approved an additional ₹30,000 for rooftop solar under PM Surya Ghar. These top-ups are state decisions with their own eligibility rules and their own payment routes, and they are not included in the ₹78,000.

If you are comparing quotations across state lines — or comparing a neighbour's numbers with your own — a state top-up is often the entire explanation for a difference that looks inexplicable.

Battery storage and hybrid inverters are not excluded

MNRE clarified, in a notification issued in September 2024, that residential rooftop systems using hybrid inverters with battery storage remain eligible for CFA under the scheme. Households wanting backup during outages therefore do not have to choose between storage and subsidy.

The subsidy is still calculated on the solar capacity and still capped at 3 kW. The battery does not increase it.

What this means for a household

Size the system to your consumption, not to the cap. If your usage supports 2 kW, installing 3 kW to "maximise the subsidy" means buying a third kilowatt whose output you will export rather than use — and export is usually credited at less than the tariff you pay.

Expect to fund the whole cost up front. Between paying the vendor and receiving the DBT there is a gap. If that gap is a problem, the scheme's concessional loan exists precisely for it.

Never share your national portal login. The subsidy is paid to you because the application is yours.

Get the subsidy treatment in writing in the quotation — specifically, whether the price quoted is before or after CFA. This is the single most common source of confusion between a household and an installer, and it is trivially avoidable.

Sources and references

Official government data.

• Press Information Bureau — "Cabinet approves PM-Surya Ghar: Muft Bijli Yojana for installing rooftop solar in One Crore households", February 2024, pib.gov.in. Source for the 60 per cent / 40 per cent CFA structure, the ₹30,000 / ₹60,000 / ₹78,000 amounts and the 3 kW cap. Accessed 23 August 2026.
• Press Information Bureau — "PM Surya Ghar Muft Bijlee Yojana", pib.gov.in. Source for the National Portal application route and the approximately 15-day CFA processing time. Accessed 23 August 2026.
• National Portal for Rooftop Solar, Ministry of New and Renewable Energy, pmsuryaghar.gov.in. Accessed 23 August 2026.

Independent trade reporting.

• Mercom India — "Delhi Approves ₹30,000 Additional Subsidy for Rooftop Solar Under PM Surya Ghar", mercomindia.com. Accessed 23 August 2026.
• Energetica India — "Residential Rooftop Solar Systems with Battery Storage and Hybrid Inverters Eligible for CFA: MNRE", energetica-india.net. Accessed 23 August 2026.

ISB interpretation. The discussion of marginal economics above the 3 kW cap, the export-versus-tariff point, and the practical guidance in the final section are Indian Solar Bazar's own analysis, not statements by MNRE. Subsidy amounts stated here are those published for the scheme; households should confirm the current figures on the national portal before contracting.