🏛️ PM Surya Ghar Subsidy Calculator

The Real Subsidy Math (Worked for a 3 kW System)

Here is the exact computation the calculator above runs, walked through with the MNRE benchmark cost of ₹50,000 per kW (the figure DISCOMs and lenders use to validate quotes, per MNRE rooftop solar guidelines, 2026):

1. Pre-subsidy system cost: 3 kW × ₹50,000 = ₹1,50,000
2. Central subsidy: first 2 kW × ₹30,000 = ₹60,000, plus 3rd kW × ₹18,000 = ₹78,000 total → ₹78,000
3. You pay (net): ₹1,50,000 − ₹78,000 = ₹72,000
4. Generation: 3 kW × 4.5 peak sun hours × 30 days ≈ 405 units/month (4,860 units/year)
5. Annual savings at ₹8/unit: 4,860 × ₹8 = ₹38,880/year
6. Payback on what you pay: ₹72,000 ÷ ₹38,880 = 1.9 years

Source: Central subsidy structure per pmsuryaghar.gov.in (PM Surya Ghar Muft Bijli Yojana, 2026). Cost benchmark per MNRE rooftop solar guidelines, 2026. Generation uses India average of 4.5 peak sun hours; your actual yield varies by state (Rajasthan/Gujarat higher, Kerala/Northeast lower).

Subsidy Comparison Table: 1 kW to 10 kW

This is the table most sites don't show. Watch the Subsidy % and Net payback columns as capacity rises — both get worse above 3 kW, because the ₹78,000 cap is fixed.

*Net payback = your out-of-pocket cost ÷ annual savings at ₹8/unit and 4.5 peak sun hours. The 3 kW row is highlighted because it's the last size where every kW earned a subsidy.

The Hidden Trade-off: Subsidy Per kW Falls Off a Cliff

Most articles state the ₹78,000 cap and stop there. The number that actually drives your decision is the marginal subsidy per kW — and it drops sharply:

• kW 1 and 2: ₹30,000 per kW (full subsidy)
• kW 3: ₹18,000 per kW (60% of the first-two rate)
• kW 4 and above: ₹0 per kW (zero additional central subsidy)

This is why the 3 kW row is the sweet spot. The 4th kilowatt costs you ₹50,000 but earns zero extra subsidy — you pay full price for it. If your roof and budget allow 5 kW, that's still worth it for the generation, but know that the last 2 kW are unsubsidized.

Common Advice vs Reality: "3.5 to 5 Year Payback"

You'll see "3.5 to 5 years payback" quoted across solar blogs. That figure is correct — but it's calculated on the gross pre-subsidy system cost, not on what you actually pay after the PM Surya Ghar subsidy.

On a 3 kW system: gross payback = ₹1,50,000 ÷ ₹38,880 = 3.9 years (matches the common quote). Net payback = ₹72,000 ÷ ₹38,880 = 1.9 years. The subsidy roughly halves your payback. If a blog quotes 3.5-5 years without clarifying "pre-subsidy," it's quoting the gross figure.

The Common Mistake: Bigger System = More Subsidy

People assume a 5 kW system gets more subsidy than a 3 kW system. It doesn't. Both get ₹78,000. The subsidy is capped at 3 kW, so scaling past 3 kW means every additional kilowatt is paid out of pocket at full cost. Size your system to your roof and consumption — don't oversize expecting a bigger subsidy cheque.

Edge Case: Group Housing Societies

The ₹78,000 cap and the per-kW slabs above apply to individual residential connections. Group housing societies (GHS) and residential welfare associations fall under a separate capacity bracket — up to 500 kW at ₹78,000 per installation under the PM Surya Ghar GHS model. If you live in an apartment society, use the GHS pathway on pmsuryaghar.gov.in, not the individual slider above.

Do States Add Their Own Subsidy?

Some states offer an additional top-up on top of the central subsidy, but the amount depends on your DISCOM, consumer category (BPL/SC/ST/General), and the year's state notification. These top-ups change and several states currently offer no additional residential subsidy beyond the central ₹78,000.

Do not assume a state top-up without checking. Verify the current 2026 state component for your DISCOM at pmsuryaghar.gov.in or your state nodal agency before signing any installer quote. The calculator above shows the central subsidy only, which is guaranteed nationwide. For your state's central subsidy details see our state-wise subsidy pages.

Decision Framework: Which Size Should You Pick?

• Small roof / low bill (₹1,000-1,500/mo): 1-2 kW. You get the highest subsidy rate (60%) and the fastest net payback (~1.5 years).
• Typical family home (bill ₹2,000-3,500/mo): 3 kW. This is the sweet spot — you capture the full ₹78,000 cap and nothing goes unsubsidized.
• Large home / AC usage (bill ₹4,000+/mo): 4-5 kW only if your roof fits it. Accept that kW 4+ are unsubsidized; the generation still pays back in ~2.7 years.
• Above 5 kW: usually only worth it if you run a home business or heavy loads. Payback stretches toward 3+ years as subsidy dilutes.
• Apartments / GHS: skip this calculator — use the PM Surya Ghar group housing society route instead.

The 2-Minute Self-Check

Before you trust any installer's "subsidy included" quote, verify it yourself:

1. Check your monthly electricity bill — note the units consumed, not just the rupees.
2. Pick the system size that generates roughly your monthly units (1 kW ≈ 135 units/mo, 2 kW ≈ 270, 3 kW ≈ 405).
3. Run that size through the calculator above and note the subsidy and "you pay" numbers.
4. Get 2-3 installer quotes. Each quote's pre-subsidy price should be within ±15% of size × ₹50,000. If a quote is far above ₹55,000/kW, ask why (ALMM cells, premium inverter, etc.).
5. Confirm the installer registers your subsidy through the national portal — not as a private "discount."

What Changed in 2026

The PM Surya Ghar central subsidy structure (₹30,000/kW for first 2 kW, ₹18,000/kW for the 3rd, ₹78,000 cap) remains in force through 2026. The notable change this year is the ALMM (Approved List of Models and Manufacturers) cell-level requirement — modules must use ALMM-listed Indian-made cells, which can add roughly ₹3,000 per kW to pre-subsidy quotes in some cases. The subsidy itself is unaffected; the slight cost bump is on the pre-subsidy side.

Your Next Steps

1. Run your planned system size through the calculator above to see your subsidy and net cost.
2. Register at pmsuryaghar.gov.in with your electricity bill and Aadhaar — the subsidy is released only through the national portal, not through installers directly.
3. Pick a registered vendor from the portal's vendor list for your DISCOM area.
4. After installation and net-metering approval, the subsidy is credited to your bank account — typically within 30 days of commissioning.

Once you know your subsidy, use our Solar ROI Calculator for the full 25-year savings projection, or the Panel Size Calculator if you're still deciding capacity from your monthly bill.

Editor Note

Reviewed June 2026. Subsidy figures per pmsuryaghar.gov.in (PM Surya Ghar Muft Bijli Yojana, 2026). Cost benchmark per MNRE rooftop solar guidelines. State-wise top-ups are not included because they vary by DISCOM and year - verify any state component with your state nodal agency. If you spot an outdated figure, please contact us.