If your electricity bills are increasing every month, installing rooftop solar can help reduce your dependence on grid electricity. The government's PM Surya Ghar: Muft Bijli Yojana is designed to make rooftop solar more affordable for residential households.

The scheme has already benefited more than 48 lakh households. As of July 22, 2026, around 39.72 lakh rooftop solar systems had been installed under the scheme.

What is PM Surya Ghar Yojana?

PM Surya Ghar: Muft Bijli Yojana is a central government scheme launched to encourage households to install rooftop solar systems.

Residential consumers with a grid-connected electricity connection can apply through the scheme's National Portal and install an eligible rooftop solar system with central financial assistance.

The objective is not simply to provide solar panels but also to help households reduce their electricity expenses.

How much subsidy can you get?

The government provides central financial assistance for eligible rooftop solar installations.

The subsidy is particularly focused on the first 2 kW of capacity, with additional support available for higher eligible capacity. The exact subsidy depends on the size of the system installed and the applicable scheme rules.

The government has also increased the focus on making rooftop solar affordable for middle-income and economically weaker households.

You can also get a low-interest loan

One of the major attractions of the scheme is that eligible households may be able to access collateral-free financing through participating nationalised banks.

According to the Ministry of New and Renewable Energy, concessional financing is currently available at a rate of repo rate plus 50 basis points, which is 5.75% per year at the rate cited in the July 2026 government update. The stated tenure is up to 10 years.

This can make it easier for households that cannot afford to pay the entire installation cost upfront.

Who can apply?

The scheme is available to residential electricity consumers across India, including households in rural areas, provided they have a grid-connected electricity connection with their local DISCOM.

Before applying, consumers should check the eligibility requirements and installation process applicable through their electricity distribution company.

How to apply for the solar subsidy?

The application process is carried out through the official PM Surya Ghar National Portal.

The general process involves:

1. Registering on the National Portal.
2. Providing your electricity-consumer details.
3. Selecting an eligible rooftop solar vendor.
4. Getting the solar system installed.
5. Completing the required inspection and documentation.
6. Receiving the applicable central financial assistance after the prescribed process is completed.

The exact steps and documents can vary depending on the DISCOM and installation.

Can your electricity bill become zero?

Solar panels can significantly reduce electricity bills, but "free electricity" does not necessarily mean that every household will have a zero bill every month.

Your savings depend on factors such as the size of the solar system, electricity consumption, sunlight available at your location, and the applicable net-metering or billing arrangement.

Interestingly, the government reported that more than 18.93 lakh households had reported zero electricity bills for at least some months after installing rooftop solar under the scheme.

More than 48 lakh households have benefited

The scheme has expanded rapidly since its launch in February 2024.

As of July 22, 2026, 48,02,717 households had benefited from rooftop solar installations under PM Surya Ghar, according to the Ministry of New and Renewable Energy. During financial year 2025-26 alone, 18.71 lakh rooftop solar systems were installed.

Check before choosing a solar vendor

If you are planning to apply, don't select a solar installer simply because someone promises a large subsidy or extremely low installation cost.

Use the official National Portal and follow the approved vendor and DISCOM process. Also check the warranty, equipment specifications, installation charges and after-sales service before making a payment.

For households with high electricity consumption, PM Surya Ghar can be worth considering because the combination of government assistance, solar generation and available financing can substantially reduce the long-term cost of electricity.