Free Solar Scheme in India 2025: Complete Guide to Apply for PM Surya Ghar Muft Bijli Yojana
India is moving rapidly toward renewable energy, and solar power is at the heart of this transformation. To encourage citizens to adopt clean energy, the Government of India has introduced a new program known as the PM Surya Ghar: Muft Bijli Yojana. This initiative aims to provide free or highly subsidized rooftop solar panels to millions of Indian households. Through this scheme, the government seeks to reduce electricity bills, cut carbon emissions, and help households become self-reliant in power generation.
This article explains everything you need to know about the scheme — eligibility, required documents, benefits, subsidy details, and a detailed step-by-step guide to apply for the Free Solar Scheme in India in 2025.
Understanding the Free Solar Scheme in India
The Free Solar Scheme, officially called PM Surya Ghar: Muft Bijli Yojana, is a flagship initiative under the Ministry of New and Renewable Energy (MNRE). The core idea of the scheme is to help households generate solar electricity from their own rooftops.
Under this scheme, the central government provides a large subsidy on rooftop solar panel installation. In many cases, eligible households can receive up to 40% to 60% of the cost covered as a subsidy. The goal is to empower people to produce electricity for their own homes and even sell excess power to the grid under net metering arrangements.
The scheme primarily targets residential consumers, especially low-income and middle-class families, helping them reduce dependency on conventional electricity and make use of India’s abundant sunlight.
Objectives of the Free Solar Scheme
The PM Surya Ghar Scheme is not just about saving money. It is a national mission that aligns with India’s renewable energy goals. Below are the main objectives of the program:
- Promote Green Energy Adoption: Encourage Indian households to use solar energy instead of coal-based power, thereby reducing pollution.
- Empower Households: Enable people to become producers of electricity rather than just consumers.
- Reduce Electricity Bills: Provide free or affordable power generation capacity to households through rooftop installations.
- Create Employment: Boost the solar manufacturing, installation, and maintenance sectors, leading to new jobs in both urban and rural areas.
- Support India’s Net Zero Goals: Contribute toward the national target of achieving 500 GW of renewable energy capacity by 2030.
Key Features of PM Surya Ghar Muft Bijli Yojana
- Financial Subsidy: Eligible households receive up to a 60% subsidy on rooftop solar installations up to a certain capacity (for example, up to 2 or 3 kilowatts).
- Free Electricity Generation: Beneficiaries can generate electricity and use it for their domestic needs, reducing electricity bills dramatically.
- Net Metering Benefit: If a house produces more electricity than it consumes, the excess power can be supplied to the local grid, and the householder receives credits for it.
- Direct Benefit Transfer (DBT): The subsidy amount is transferred directly into the applicant’s bank account after successful installation and verification.
- Government-Approved Vendors: Installation can only be done by vendors empanelled by the MNRE or respective state electricity distribution companies (DISCOMs).
- Nationwide Implementation: The scheme is available across all states and union territories in India, though subsidy amounts and local rules may vary slightly.
Eligibility Criteria for Free Solar Scheme
Before applying, it is important to understand who can apply and under what conditions. The government has set some clear eligibility rules to ensure only genuine beneficiaries receive the subsidy.
Basic Eligibility:
- The applicant must be an Indian citizen.
- The applicant must be a residential electricity consumer under a valid domestic electricity connection.
- The applicant must own the house or rooftop where the solar panel will be installed.
- The applicant should not have previously availed of any rooftop solar subsidy under any government scheme.
- The system must be installed through an empanelled vendor approved by MNRE or the local DISCOM.
Additional Guidelines:
- Tenants generally cannot apply unless the property owner provides written permission.
- The rooftop should be structurally strong enough to hold solar panels.
- The applicant’s home must have adequate sunlight exposure for efficient solar energy generation.
Documents Required for Application
When you apply for the PM Surya Ghar Scheme, you need to provide the following documents. It is recommended to keep them scanned and ready before starting the online application process.
- Aadhaar card or any valid identity proof
- Proof of residence (electricity bill, ration card, or any government document showing the address)
- Latest electricity bill (showing consumer number and connection type)
- Proof of house ownership (property tax receipt, sale deed, or ownership certificate)
- Bank account details and a cancelled cheque (for subsidy transfer)
- Passport-size photographs of the applicant
- Vendor quotation and rooftop layout (if already selected)
Benefits of the Free Solar Scheme in India
The PM Surya Ghar Scheme offers both financial and environmental benefits. The main advantages are as follows:
1. Reduced Electricity Bills
Households with a 2 kW to 3 kW rooftop solar system can save between ₹1,000 and ₹2,000 every month on electricity bills. Over 20 years, these savings can amount to lakhs of rupees.
2. Long-Term Savings
Solar panels typically last for 20 to 25 years. Once installed, households continue to enjoy free power generation with minimal maintenance costs.
3. Income through Net Metering
If your system generates more power than you consume, you can feed the surplus energy into the local electricity grid and receive credits or payments from the electricity distribution company.
4. Government Subsidy Support
The government covers a large portion of the installation cost through direct subsidy. For example, systems up to 2 kW may receive a subsidy of around ₹30,000 per kW, while larger systems may receive proportionally adjusted subsidies.
5. Environmental Contribution
Each kilowatt of solar power reduces carbon dioxide emissions by nearly 1.5 tonnes per year, helping India move closer to its climate goals.
6. Low Maintenance
Modern solar systems are durable and require minimal maintenance. Routine cleaning and inspection are usually sufficient to ensure long-term performance.
7. Increased Property Value
Homes with solar installations tend to have higher property values. Future buyers view them as energy-efficient and cost-saving investments.
Step-by-Step Process to Apply for Free Solar Scheme in India
Applying for the PM Surya Ghar Scheme is easy and can be done online through the official government portal. The process involves registration, verification, installation, and subsidy approval. Below is a detailed explanation.
Step 1: Visit the Official Portal
Go to the national solar rooftop portal: pmsuryaghar.gov.in. This is the central platform for the PM Surya Ghar Muft Bijli Yojana. Choose your state, district, and electricity distribution company (DISCOM) from the drop-down list.
Step 2: Register as a Consumer
You must register using your consumer number (found on your electricity bill), mobile number, and email ID. You will receive an OTP (one-time password) for verification. After successful verification, create your user login credentials.
Step 3: Login and Fill the Application Form
Once registered, log in to your account. Fill in all details about your home, rooftop area, preferred solar system capacity, and select an empanelled vendor from the list. You may also upload the necessary documents at this stage.
Step 4: Technical Feasibility Approval
After submitting the form, your local DISCOM reviews the application and assesses the technical feasibility of installing solar panels on your rooftop. They check aspects such as roof area, shading, and connection capacity.
Step 5: Choose Empanelled Vendor
Once the DISCOM approves your feasibility report, you can finalize a vendor from the official list. The vendor will visit your house, inspect the site, and confirm the technical specifications and estimated cost.
Step 6: Installation of the Solar System
The vendor installs the rooftop solar panels, inverter, and net meter according to MNRE guidelines. The entire process may take a few days to a few weeks depending on your location and system size.
Step 7: Inspection and Commissioning
After installation, the DISCOM or relevant authority inspects the setup to ensure it meets safety and technical standards. Once approved, you will receive a commissioning certificate confirming that the system is operational.
Step 8: Upload Bank Details and Receive Subsidy
After commissioning, upload your bank details, cancelled cheque, and other required documents on the portal. The government will transfer the approved subsidy directly into your bank account under the Direct Benefit Transfer system.
How Much Subsidy Can You Get
The subsidy amount under the Free Solar Scheme depends on the capacity of the solar system you install. The government revises these rates periodically. As of now, the subsidy is approximately structured as follows:
- Up to 2 kW system: about ₹30,000 per kW
- 3 kW system: about ₹78,000 total subsidy
- Above 3 kW system: additional capacity may get smaller subsidy amounts based on state rules
For example, if you install a 3 kW system costing ₹1,50,000, you might receive up to ₹78,000 as a subsidy. Your net cost after subsidy would be around ₹72,000, and you could save about ₹1,500 to ₹2,000 per month on electricity bills, recovering your cost in less than four years.
State-Wise Implementation
While the PM Surya Ghar Scheme is a central initiative, each state has its own renewable energy agency or electricity distribution company managing local implementation. Subsidy rates, vendor lists, and installation timelines may differ slightly.
- Karnataka: Managed through BESCOM, MESCOM, and HESCOM portals under the Karnataka Renewable Energy Development Limited (KREDL).
- Maharashtra: Implemented through MSEDCL with similar online registration.
- Gujarat: Known for its rooftop solar leadership, the state offers additional top-up subsidies.
- Telangana and Andhra Pradesh: Managed by respective DISCOMs with integrated net-metering approvals.
- Delhi and Haryana: Offer state-level incentives in addition to central subsidies.
Applicants should always refer to their state’s official electricity distribution website for detailed procedures.
Cost and Savings Estimation
Let us look at an example of a typical household installation:
| System Size | Approx. Cost | Subsidy (Central) | Net Cost | Monthly Saving | Payback Period |
|---|---|---|---|---|---|
| 1 kW | ₹60,000 | ₹30,000 | ₹30,000 | ₹800 | 3–4 years |
| 2 kW | ₹1,20,000 | ₹60,000 | ₹60,000 | ₹1,600 | 3–4 years |
| 3 kW | ₹1,50,000 | ₹78,000 | ₹72,000 | ₹2,000 | 3–4 years |
After the payback period, the power generated is essentially free for the next 20 years.
Common Mistakes to Avoid
- Not using an approved vendor: Only empanelled vendors are authorized to install systems eligible for subsidy.
- Incomplete documents: Missing proofs can delay approval or payment.
- Incorrect system size selection: Oversized systems may not be fully subsidized.
- Ignoring roof suitability: Ensure your roof gets sufficient sunlight and has structural stability.
- Falling for scams: Some fake websites and agents claim to provide instant free solar panels. Always apply through the official government portal.
- Not checking net metering policies: Some states require separate approval for connecting to the grid.
Frequently Asked Questions (FAQ)
Q1. Is the solar system completely free under this scheme?
Not entirely. The government provides a large subsidy, covering most of the cost, but beneficiaries usually contribute a small remaining portion depending on system size and state rules.
Q2. How long does it take to receive the subsidy?
Once installation and verification are completed, the subsidy is transferred to the applicant’s bank account within 30 to 60 days.
Q3. Can tenants apply for this scheme?
Only property owners can apply. Tenants can apply only if the owner provides written permission and documentation.
Q4. Is there any maintenance cost?
Minimal maintenance is required, mainly periodic cleaning and annual inspection. Most vendors offer free service for the first few years.
Q5. Can I sell the extra power generated?
Yes. Through net metering, you can supply extra electricity to the local grid and receive credits or payments on your next bill.
Q6. What happens if my name or application gets rejected?
You can reapply after correcting errors or providing missing documents. The DISCOM also provides reasons for rejection.
Economic and Environmental Impact
The large-scale adoption of rooftop solar panels is transforming India’s energy landscape. Millions of households generating their own power reduce the pressure on the national grid. Each kilowatt of installed solar capacity reduces about 1.5 tons of CO2 emissions per year.
If even one crore homes install a 3 kW system, the country could generate 30 GW of clean power, significantly cutting fossil fuel dependence. Moreover, this initiative will create thousands of jobs in manufacturing, installation, sales, and maintenance of solar systems.
Tips for Applicants
- Apply early: Subsidy approvals are often processed on a first-come, first-served basis.
- Keep documentation ready: Upload clear scanned copies to avoid rejection.
- Compare vendor quotations: Prices and service quality may differ among empanelled vendors.
- Monitor your application: Regularly log in to check the status of your application and subsidy.
- Ensure proper installation: Ask your vendor to demonstrate system functionality and safety compliance.
- Store warranty documents: Panels usually carry a 25-year performance warranty and 5-year inverter warranty.
Long-Term Vision
The PM Surya Ghar: Muft Bijli Yojana is more than a financial support scheme; it is part of India’s broader renewable energy roadmap. The country has set an ambitious target of achieving net-zero carbon emissions by 2070. Rooftop solar energy will play a crucial role in achieving this mission.
The scheme democratizes energy access by allowing even small households to participate in the green revolution. It not only lowers bills but also inspires environmental responsibility.
By 2025, the government aims to cover millions of households under this initiative, ensuring every Indian family can access clean, reliable, and affordable electricity from their own rooftops.
Click Hear to Apply Solar
The Free Solar Scheme in India, officially known as the PM Surya Ghar Muft Bijli Yojana, is a transformative initiative that combines environmental sustainability with economic empowerment. It allows citizens to generate electricity from sunlight, reduce their monthly bills, and contribute to the nation’s renewable energy mission.
With a simple online application process, direct subsidy transfer, and long-term savings, the scheme stands as one of the most beneficial government programs for households in 2025.
If you own a house with a suitable rooftop, this is the best time to apply for the Free Solar Scheme and secure your place in India’s clean energy future. The sun is shining — and with the government’s help, it can light up your home for free.