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Housing & Urban Development
7 min read Published 2025-01-18Updated 2026-10-10

PM Surya Ghar Muft Bijli Yojana: Subsidy Calculation, Free Solar Units & Rooftop Installation Guide

Everything you need to know about the ₹78,000 direct subsidy for installing rooftop solar panels on your home in 2025.

By Sarkari Yojna Research DeskVerified Informational Article
With soaring electricity tariffs, the PM Surya Ghar: Muft Bijli Yojana has emerged as one of India's most popular green welfare initiatives. The scheme offers handsome upfront capital subsidies credited straight into the consumer's bank account within 30 days of installation. ### Subsidy Slabs Explained 1. **1 kW Solar System**: - Estimated Cost: ₹50,000 - ₹60,000 - Government Subsidy: **₹30,000** - Net Out-of-Pocket: ₹20,000 - ₹30,000 - Electricity Generation: ~120-150 units/month 2. **2 kW Solar System**: - Estimated Cost: ₹1,00,000 - ₹1,20,000 - Government Subsidy: **₹60,000** - Net Out-of-Pocket: ₹40,000 - ₹60,000 - Electricity Generation: ~240-300 units/month 3. **3 kW Solar System or Higher**: - Estimated Cost: ₹1,45,000 - ₹1,80,000 - Government Subsidy: **₹78,000 (Maximum Cap)** - Net Out-of-Pocket: ₹67,000 - ₹1,02,000 - Electricity Generation: 360 - 450+ units/month (Enables up to 300 units free power + surplus export credits) ### How Net-Metering Works Under net-metering, your bidirectional meter tracks electricity fed into the grid during daytime sunshine and units consumed at night. You only pay for the net units consumed. If your solar panels export more electricity than you consume, your electricity bill is zero and you accumulate energy credits with your local DISCOM!