Quick answer: A 5 kW rooftop system suits most Indian homes with a monthly bill above ₹3,000, costs roughly ₹2.5 to ₹3.5 lakh before subsidy, and has a payback that depends on generation, tariff, self-consumption, export credits and installation cost. Under the PM Surya Ghar Muft Bijli Yojana, residential consumers can get a central subsidy of up to ₹78,000, with ₹30,000 per kW for the first 2 kW and ₹18,000 for the third. Apply through the national portal, not through an installer promising to handle it for a fee.
The central subsidy structure for general-category states
| System size | Central subsidy | Suitable for |
|---|---|---|
| 1 kW | ₹30,000 | Very low consumption, under 150 units a month |
| 2 kW | ₹60,000 | Small household, around 150–300 units |
| 3 kW | ₹78,000 | Typical family home, 300–400 units |
| 4 kW | ₹78,000 (capped) | Larger home |
| 5 kW | ₹78,000 (capped) | 400–600 units a month |
| Above 5 kW | ₹78,000 (capped) | Large homes, but subsidy does not scale further |
The ₹78,000 cap shown applies to general-category states. Special-category states and UTs have higher central assistance, up to ₹85,800; check eligibility and any separate state support.
What it costs and what you save
| System | Approx. cost before subsidy | After ₹78,000 subsidy | Typical monthly generation | Payback |
|---|---|---|---|---|
| 3 kW | ₹1.6–₹2.1 lakh | ₹85,000–₹1.3 lakh | 360–400 units | 3–5 years |
| 5 kW | ₹2.5–₹3.5 lakh | ₹1.7–₹2.7 lakh | 600–650 units | 4–6 years |
| 10 kW | ₹5–₹6.5 lakh | ₹4.2–₹5.7 lakh | 1,200–1,300 units | 5–7 years |
A rough rule for sizing: 1 kW of rooftop solar generates around 4 to 4.5 units a day in most of India, so roughly 120 to 135 units a month. Match the system to your average monthly consumption rather than to your roof area, because exporting large surpluses earns less than offsetting your own usage.
How to apply
- Register at the PM Surya Ghar national portal with your state, DISCOM and consumer number from your electricity bill.
- Log in and submit an application for rooftop solar.
- Wait for feasibility approval from your DISCOM, which confirms your connection can support it.
- Choose a registered vendor from the list on the portal. Using an unregistered installer forfeits the subsidy.
- Get the system installed, then apply for net metering through the portal.
- After the DISCOM inspects and installs the net meter, a commissioning certificate is generated.
- Submit your bank account details on the portal. The subsidy is credited directly to your account, typically within about 30 days.
The subsidy comes to you, not to the installer. Any vendor asking you to sign over the subsidy or charging a fee to process it is worth avoiding.
Net metering, which decides your real saving
Net metering credits you for surplus power exported to the grid, offsetting units you import at night. The terms vary considerably by state: some offer full unit-for-unit netting, others credit exports at a lower rate, and some cap system size relative to your sanctioned load. Ask your DISCOM for the current policy in writing before ordering, because this affects savings more than panel brand does.
What to check before signing
- Vendor is registered on the PM Surya Ghar portal. Verify the listing yourself rather than taking their word.
- Panel type and warranty: typically 25 years performance warranty, 10 to 12 years product warranty.
- Inverter warranty, usually 5 to 10 years. The inverter is the component most likely to need replacement.
- Structure quality and wind rating, which matters in coastal and high-wind areas.
- Roof condition and shading. A roof needing repair within a decade should be fixed first. Even partial shading from a water tank or neighbouring building cuts output disproportionately.
- Annual maintenance terms, including cleaning frequency. Dust accumulation in Indian conditions can reduce output by 15% or more if panels are never cleaned.
- Whether the quote is turnkey, covering structure, wiring, net meter liaison and commissioning, or whether extras appear later.
Who should not bother
- Monthly bills under about ₹1,500, where absolute savings are small relative to the investment.
- Rented homes, unless the landlord is paying.
- Flats without exclusive roof rights; societies can install common systems, but that is a collective decision.
- Heavily shaded roofs.
- Anyone planning to sell the property within two to three years.
Frequently asked questions
How long do panels last?
Typically 25 years with gradual output decline of roughly 0.5% a year. Inverters usually need replacement once in that period.
Does it work during a power cut?
A standard grid-tied system shuts off during an outage for safety. Backup during cuts requires batteries, which add substantial cost and are rarely economic purely for savings.
Do I need to clean the panels?
Yes, typically every two to four weeks in dusty regions. It is the single most neglected factor in underperforming systems.
Is the subsidy taxable?
Do not assume the subsidy is tax-free; confirm its treatment for your circumstances before filing.
Last updated September 2026. Subsidy amounts, state top-ups and net metering rules change; verify on the PM Surya Ghar portal and with your DISCOM before ordering. General information, not financial advice.
Sources
Checked against: Ministry of New and Renewable Energy — rooftop solar subsidy. Rules, fees and rates change — check the official page before you act on anything here.
Article Was Generated By AI.