Are You Eligible For PM’s Rooftop Solar Scheme? What Are Its Benefits?

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The ‘PM-Surya Ghar: Muft Bijli Yojana’ was inaugurated on February 13 with a budget of INR 75,000 crore. It will assist 1 crore households in installing rooftop solar units and contributing to green goals.

How will the users benefit?

Installing rooftop solar panels will provide a household with up to 300 units of free power per month and an estimated yearly savings of INR 15,000-18,000, depending on the rooftop capacity and use.

Households can also make money by installing charging stations for electric two-wheelers and cars, particularly in rural locations.

Who is eligible to apply? And how?

All houses are eligible to apply, although subsidies are only available for rooftop systems with a capacity of up to 3 kilowatts (kW or 3,000 watts). Applications can be submitted at, and the portal also assists with calculating the required capacity for the rooftop system and its advantages.

Are there any preconditions?

To be eligible for a subsidy, households must utilise ‘Made in India’ solar panels and have the system fitted by a government-approved vendor (listed on the website). Battery storage is not permitted if one’s family receives a subsidy.

What exactly does the subsidy cover?

Financial support is only provided for systems with capacities of up to 3kW. The subsidy covers 60% of the cost of a system of up to 2kW capacity and 40% of the additional cost for systems of 2-3 kW capacity. This equates to a subsidy of around INR 30,000 for systems with a capacity of 1kW, INR 60,000 for 2kW, and 78,000 for 3kW or higher. The subsidy will be paid directly into the beneficiary’s bank account once the rooftop panels have been installed and government officials have completed their due diligence.

What’s different about the new scheme?

The new scheme provides a larger subsidy than Phase II of the residential rooftop solar initiative, which was started in March 2019. Applications for subsidies submitted prior to February 13 will, however, receive government assistance under the previous regime.

What is the price of a rooftop system?

A rooftop system is priced based on the quantity and size of solar panels, their specs, and performance. The quality of mountings and auxiliary electronics also influences the cost. A 1kW rooftop system can cost up to INR 72,000, while a 3kW unit costs more than INR 1.6 lakh.