PM Surya Ghar Muft Bijli Yojana: Solar Rooftop Subsidy & Bill Savings Calculation

The Government of India launched the ambitious PM Surya Ghar: Muft Bijli Yojana with a total outlay of ₹75,021 crore. The initiative aims to provide free electricity (up to 300 units per month) to 1 crore households by providing direct bank transfer (DBT) subsidies for rooftop solar installations.

1. Central Government Subsidy Structure (2026)

Under the revised national portal guidelines, subsidies are credited directly to your bank account within 30 days of DISCOM net-meter commissioning:

• 1 kW System: ₹30,000 central subsidy
• 2 kW System: ₹60,000 central subsidy
• 3 kW System & Above: ₹78,000 maximum central subsidy

(Some state governments, such as Uttar Pradesh and Gujarat, provide an additional state top-up subsidy of ₹10,000 to ₹30,000).

2. What Capacity Solar Plant Do You Need?

A high-efficiency rooftop solar panel in India produces approximately 4 to 4.5 units of electricity per day per 1 kW of installed capacity under clear sunlight:

3. Financial Breakdown & Return on Investment (3 kW Plant)

• Gross Installation Cost: ~₹1,80,000 (inclusive of bi-directional net meter, DCR panels, and inverter).
• PM Surya Ghar Subsidy: -₹78,000
• Net Cost to Consumer: ₹1,02,000

At an average tariff of ₹7.00 per unit, generating 380 units monthly saves: $Monthly Savings = 380 × ₹7.00 = ₹2,660 / \text{month}$ $Annual Savings = ₹2,660 × 12 = ₹31,920 / \text{year}$

$Break-even Period = \frac{₹1,02,000}{₹31,920} ≈ 3.2 \text{ Years!}$

Since solar panels carry a 25-year performance warranty, your system yields over 21 years of completely free electricity after breaking even!

Estimate your system size and ROI using our dedicated Solar Savings Calculator.