Switching to solar energy is becoming more affordable than ever in India. Thanks to the Pradhan Mantri Surya Ghar Muft Bijli Yojana, homeowners can now install a 3KW solar system for just ₹999, thanks to government subsidies worth ₹1,08,000. This scheme aims to make India more energy independent while reducing household electricity bills.
To help you understand how you can take advantage of this initiative, we’ve broken down all the key details, from subsidy amounts to the step-by-step application process.
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Understanding the PM Surya Ghar Muft Bijli Yojana
The Pradhan Mantri Surya Ghar Muft Bijli Yojana was launched to promote rooftop solar panel installation in residential homes. The government aims to cover 1 crore households, enabling them to generate their own electricity and reduce reliance on fossil fuels.
How Much Subsidy Do You Get?
The subsidy for solar panel installation is structured as follows:
- Up to 2KW: ₹30,000 per KW
- Above 2KW and up to 3KW: ₹18,000 per KW
- Above 3KW: Fixed subsidy of ₹78,000
For a 3KW system, the breakdown is:
- First 2KW: ₹60,000 (₹30,000 × 2KW)
- Next 1KW: ₹18,000 (₹18,000 × 1KW)
- Total Subsidy: ₹78,000
However, in some states, additional subsidies bring the total to ₹1,08,000, reducing the cost drastically.
What Is the Cost of a 3KW Solar System?
A standard 3KW rooftop solar system costs between ₹1,25,000 – ₹1,80,000, depending on panel quality and installation charges. With the subsidy, the final cost drops significantly:
- Base Cost: ₹1,80,000
- Govt Subsidy: ₹1,08,000
- Final Cost to Homeowner: ₹72,000 (or even lower in some states)
Some approved vendors offer easy financing and EMI options, making it even more affordable.
Step-by-Step Guide to Apply for the Subsidy
Step 1: Check Your Eligibility
Before applying, ensure:
- You own the property.
- Your home has a valid electricity connection.
- Your rooftop has enough space for a shadow-free installation.
- You have not previously availed any solar subsidy.
Step 2: Apply on the National Portal
Visit pmsuryaghar.gov.in and register using your details:
- Aadhaar number
- Electricity bill
- Property documents
- Bank details (for subsidy transfer)
Step 3: Select an Approved Vendor
Once registered, choose an MNRE-approved solar vendor in your area. The vendor will:
- Inspect your rooftop
- Finalize system capacity
- Provide an estimated cost
Step 4: Installation & Net Metering Setup
After verification, the solar system is installed. The net metering system allows excess electricity to be fed into the grid, earning you credits.
Step 5: Get Your Subsidy Amount
After installation and final inspection:
- The subsidy is transferred directly to your bank account.
- Your electricity bill reductions begin immediately!
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Additional Benefits and State-Level Incentives
- State Governments Offer Extra Subsidies: Some states provide additional subsidies beyond the central government’s scheme, reducing costs even further.
- Loan Assistance: Banks and NBFCs offer low-interest solar loans to make upfront payments easier.
- Tax Benefits: Homeowners can claim tax deductions on solar investments under certain green energy schemes.
How Much Can You Save?
A 3KW system generates around 12-15 units of electricity daily, covering most household needs. Here’s an estimated savings calculation:
| Monthly Electricity Bill | Savings After Solar |
| ₹2,000 | ₹1,500 – ₹1,800 Saved |
| ₹3,500 | ₹2,500 – ₹3,000 Saved |
| ₹5,000 | ₹3,800 – ₹4,500 Saved |
Over 25 years, the system can save ₹6-8 lakh on electricity bills!
(FAQs)
1. Can tenants apply for this subsidy?
No, only homeowners with valid electricity connections are eligible.
2. How long does it take to get the subsidy?
The subsidy is credited within 30-60 days after installation verification.
3. Are additional subsidies available for low-income households?
Yes, some states provide extra subsidies for economically weaker sections (EWS).
4. Do I need to maintain my solar panels?
Minimal maintenance is required—clean panels once a month and ensure they are free from dust/shade.
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