PM Surya Ghar Yojana: Subsidy, Loan and How to Apply
Reviewed by: WeCredit Research Team
PM Surya Ghar: Muft Bijli Yojana gives a household a central subsidy of up to Rs. 78,000 for a rooftop solar system of up to 3 kW, and lets you borrow the rest from a bank without collateral. You apply on the national portal, pmsuryaghar.gov.in, and the scheme targets one crore homes by FY 2026-27.
Quick answer: the subsidy is Rs. 30,000 for a 1 kW system, Rs. 60,000 for 2 kW and Rs. 78,000 for 3 kW or more. The loan is collateral-free for systems up to 3 kW. WeCredit does not sanction government scheme loans, so confirm current terms on the official portal and with your bank before you commit.
PM Surya Ghar at a Glance
| Item | What the official sources say |
|---|---|
| What it is | A central scheme to install rooftop solar in one crore residential households |
| Launched | 13 February 2024. The Cabinet approved a total outlay of Rs. 75,021 crore on 29 February 2024 |
| Target date | One crore households by FY 2026-27 |
| Who can apply | Residential consumers with a grid-connected electricity connection from the local DISCOM |
| Central subsidy | Rs. 30,000 per kW for the first 2 kW and Rs. 18,000 for the third kW, capped at 3 kW |
| Loan | Collateral-free, from nationalised banks, for systems up to 3 kW |
| Loan rate and tenure | Repo rate plus 50 basis points, 5.75% a year at the time of the latest release, with a tenure of 10 years |
| Where to apply | National Portal, pmsuryaghar.gov.in |
How the Scheme Works
The Ministry of New and Renewable Energy runs the scheme. You register on the national portal, apply for a rooftop solar system and pick a vendor from the portal. The portal also offers information such as suitable system sizes, a benefits calculator and vendor ratings. Once the system is installed, the central subsidy is released to you, and you can fund the balance from your savings or from a bank loan.
Before you decide on a system size, it helps to see what a plant costs in practice. Our breakdown of solar panel installation cost explains the cost side, while this page covers the subsidy and the scheme rules.
Subsidy by System Size
| System capacity | Central subsidy (at current benchmark prices) |
|---|---|
| 1 kW | Rs. 30,000 |
| 2 kW | Rs. 60,000 |
| 3 kW or higher | Rs. 78,000 (capped at 3 kW) |
The Government of India describes the subsidy as 60% of system cost for a 2 kW system and 40% of the additional cost between 2 kW and 3 kW. Housing societies and resident welfare associations get Rs. 18,000 per kW, up to a plant capacity of 500 kW, according to a Ministry of New and Renewable Energy reply in the Lok Sabha on 22 July 2026.
Choosing a System Size
The Government of India’s first-anniversary release links the subsidy to how much electricity a household uses each month. Use it as a starting point, then ask your vendor to size the system to your roof and your bills.
| Monthly consumption (units) | Suggested capacity | Subsidy |
|---|---|---|
| 0 to 150 | 1 to 2 kW | Rs. 30,000 to Rs. 60,000 |
| 150 to 300 | 2 to 3 kW | Rs. 60,000 to Rs. 78,000 |
| Above 300 | Above 3 kW | Rs. 78,000 |
A larger system does not earn a larger subsidy once you pass 3 kW, so the extra capacity is paid for entirely by you. If your usage is well above 300 units a month, compare the extra cost of a bigger plant with what you expect to save on your bill.
Who Can Apply (Eligibility)
- You are a residential consumer. The scheme is for homes, not commercial or industrial connections.
- You have a grid-connected electricity connection with your local DISCOM.
- You have a roof you can use. Housing societies and resident welfare associations have a separate provision of Rs. 18,000 per kW.
- You apply through the national portal and choose a vendor listed there.
The Collateral-Free Loan
Nationalised banks offer a collateral-free loan for residential rooftop solar systems of up to 3 kW. If you want to see how other schemes handle security, read about collateral-free government loans. A July 2026 release from the Ministry of New and Renewable Energy gives the rate as repo rate plus 50 basis points, which was 5.75% a year at that time, with a tenure of 10 years. Earlier government releases quoted “around 7%”. The rate moves with the repo rate and each bank sets its own process, so ask your bank for the rate it will apply on your sanction date.
Worked Example: Loan EMI After the Subsidy
This example uses an assumed loan amount and the 5.75% rate quoted above. It is only a way to see the EMI, because your system cost, bank and rate will differ.
- You install a 3 kW system and are eligible for the Rs. 78,000 central subsidy.
- Assume you borrow Rs. 1,50,000 at 5.75% a year for 10 years (120 months).
- The EMI works out to about Rs. 1,647 a month.
- Over 10 years you repay about Rs. 1,97,585, of which about Rs. 47,585 is interest.
Ask your bank and vendor how the upfront payment and the subsidy credit are handled in your case, and plan your cash flow for the gap between paying the vendor and receiving the subsidy.
How the Subsidy and the Loan Fit Together
The subsidy and the loan are two separate things that you handle separately. The subsidy is a central grant that the portal processes after you make the redemption request. The loan is a bank product, so your bank decides whether to sanction it and on what terms, even though the scheme says it should be collateral-free for systems up to 3 kW. Follow the portal’s steps for the subsidy whether you pay from savings or borrow.
Because the loan runs for up to 10 years, compare the EMI with the electricity bill you expect to save. Ask your vendor for a written estimate of the system size, the total price and the expected generation, so you can set the figures against each other before you sign anything with a bank.
What to Keep Ready
The portal and your lender set the final document list, so follow the screens they show you. These are the details most applicants need to have at hand:
- Your electricity connection details and a recent bill from your DISCOM
- A bank account in your name for receiving the subsidy
- Your mobile number and email for registering on the portal
- Proof that you own or can use the roof (a housing society will need its own approvals)
How to Apply: Step by Step
- Open pmsuryaghar.gov.in and register as a household, using the details linked to your electricity connection.
- Apply for rooftop solar for your connection and use the portal’s information on suitable system sizes and the benefits calculator.
- Select a vendor from the portal. The portal shows vendor ratings.
- If you want a loan, apply to a bank for the collateral-free rooftop solar loan.
- Get the system installed by the selected vendor.
- Make the subsidy redemption request on the portal when the portal shows that stage after installation. Government data says that with credentials entered correctly, processing takes around 15 days after the request.
- Track the subsidy credit in your bank account. The portal shows the exact screens for each stage.
Timeline and Progress
| Date | Milestone |
|---|---|
| 13 February 2024 | Scheme launched |
| 29 February 2024 | Cabinet approval with an outlay of Rs. 75,021 crore |
| 27 January 2025 | 8.46 lakh households benefited |
| 22 July 2026 | 39,72,447 systems installed, covering 48,02,717 households |
| FY 2026-27 | Target of one crore households |
The Ministry’s July 2026 reply also shows the money behind the scheme. The budget estimate for 2026-27 is Rs. 22,000 crore, and expenditure stood at Rs. 10,392.48 crore as on 22 July 2026. In the Lok Sabha, the Ministry reported that Rs. 27,323.55 crore had been released as central financial assistance since launch, up to 20 July 2026. No end date is mentioned in the releases cited here, so watch the portal for any notice before you plan an installation.
Is This Scheme Right for You? Checklist
- Your connection is residential and grid-connected.
- You have usable roof space or society approval for it.
- You are ready to choose a vendor through the portal.
- You can afford the upfront payment or have arranged a bank loan.
- You can wait for the subsidy to be credited after installation.
What Can Slow or Stop an Application
| Issue | Why it matters | What to do |
|---|---|---|
| Wrong credentials on the portal | Government data ties the 15-day processing time to credentials being entered correctly | Match your name and connection details to your electricity bill |
| No grid-connected residential connection | Eligibility is limited to residential consumers with a DISCOM connection | Confirm your connection type with your DISCOM |
| Installing outside the portal | The scheme works through the national portal, where you select a vendor | Apply and pick a vendor on the portal first |
| Bank loan not arranged in time | Banks set their own sanction process | Ask your bank about the process before you sign with a vendor |
Common Mistakes
- Buying a system before registering on the portal and choosing a listed vendor.
- Assuming the subsidy covers the full cost. It is a share of the system cost, capped at 3 kW.
- Relying on a rate quoted years ago. Official releases have quoted both around 7% and 5.75%, so ask your bank for today’s rate.
- Not checking what an agent charges. You can apply yourself on the national portal.
Where This Fits Among Government Schemes
PM Surya Ghar is a household energy scheme with a loan attached. To see how it sits next to schemes for businesses, farmers and students, browse the government loan schemes hub.
Frequently Asked Questions
How much subsidy do I get under PM Surya Ghar?
Rs. 30,000 for a 1 kW system, Rs. 60,000 for 2 kW and Rs. 78,000 for 3 kW or more, at current benchmark prices. The subsidy is capped at 3 kW.
Who is eligible for PM Surya Ghar?
Residential consumers with a grid-connected electricity connection from the local DISCOM can apply through the national portal.
How do I apply for PM Surya Ghar?
Register on pmsuryaghar.gov.in, apply for rooftop solar, select a vendor on the portal, get the system installed and make the subsidy redemption request.
What is the loan interest rate?
A July 2026 government release gives repo rate plus 50 basis points, which was 5.75% a year then, with a 10-year tenure. Your bank sets the final rate.
Do I need collateral for the loan?
No. The scheme provides collateral-free loans from nationalised banks for residential rooftop solar systems up to 3 kW.
How long does the subsidy take to arrive?
Government data from February 2025 says processing takes around 15 days after you make the redemption request, when your credentials on the portal are correct.
Is there a last date to apply?
The stated goal is one crore households by FY 2026-27. The releases cited here mention no end date, so check the portal for the latest notice.
Does WeCredit sanction PM Surya Ghar loans?
No. WeCredit does not sanction government scheme loans. Your bank decides the loan and the portal handles the subsidy, so confirm details on the official source.
