Indian Government has launched the PM Surya Ghar: Muft Bijli Yojana to help Indian households install rooftop solar panels at low cost. In this article, we will give you detailed information about the subsidy for installing 3kW and 5kW solar panel systems in India under this scheme.
But, first, let’s understand what is PM Surya Ghar Yojana and its subsidy benefits for installing 3kw and 5kw solar Panel for residential use.
What is PM Surya Ghar: Muft Bijli Yojana?
Launched on 29th February 2024, PM Surya Ghar: Muft Bijli Yojana aims to:
- Install 1 crore rooftop solar systems.
- Provide free or low-cost electricity (up to 300 units monthly) for households.
- Generate renewable electricity to reduce carbon emissions significantly.
- Boost local employment and energy security.
The total budget for this scheme is ₹75,021 crore, valid until 31st March 2027.
Subsidy Amount under PM Surya Ghar Yojana
For Residential Consumers
System Size | Subsidy Amount |
---|---|
Up to 2 kW | ₹30,000 per kW (60% of cost) |
2-3 kW | Additional ₹18,000 per kW |
Above 3 kW | Maximum subsidy capped at ₹78,000 |
Example:
- 3kW solar system subsidy = ₹30,000 x 2 + ₹18,000 x 1 = ₹78,000
- 5kW solar system subsidy = ₹78,000 (maximum subsidy cap)
Subsidy in Special Category States
An additional 10% subsidy applies in special states like Uttarakhand, Himachal Pradesh, J&K, Ladakh, and northeastern states.
3kW Solar Panel System Price with Subsidy
Estimated System Cost (Before Subsidy)
- On-grid: ₹2,13,300 onwards
- Off-grid: ₹2,40,000
- Hybrid: ₹4,50,000
Subsidy for 3kW System
- ₹78,000 (₹30,000 per kW for first 2 kW + ₹18,000 for 3rd kW)
Cost After Subsidy
- On-grid: ₹1,35,300 (approx.)
- Off-grid: ₹1,62,000 (approx.)
Monthly Energy Output
- 360 – 450 units (approx.)
Rooftop Space Required
- Around 300 sq. ft.

5kW Solar Panel System Price with Subsidy
Estimated System Cost (Before Subsidy)
- On-grid: ₹3,00,000 to ₹3,55,000
- Off-grid: ₹3,50,000 to ₹5,37,000
- Hybrid: ₹4,50,000 to ₹7,50,000
Subsidy for 5kW System
- Capped at ₹78,000
Cost After Subsidy
- On-grid: ₹2,22,000 to ₹2,77,000 (approx.)
- Off-grid: ₹2,72,000 to ₹4,59,000 (approx.)
Monthly Energy Output
- 600 – 750 units (approx.)
Rooftop Space Required
- Around 550 sq. ft.

Step-by-Step Application Process on PM Surya Ghar Portal
Follow these steps to apply for the solar system subsidy on the official PM Surya Ghar portal:
- Consumer Registration: Register your mobile number and verify with OTP.
- Complete Your Profile: Fill in basic details (name, mobile number, email, address).
- Application Submission:
- Enter your DISCOM details and verify.
- Fill rooftop solar details (system size, consumer type, etc.).
- Pick your location using the provided map.
- Upload necessary documents (electricity bill optional).
- Submit your application.
- Vendor Selection:
- Choose an approved vendor from the portal.
- Installation & Inspection:
- The vendor will then install the system.
- DISCOM will conducts inspection for compliance.
- Subsidy Redemption:
- After successful inspection, submit bank details for subsidy.
- Subsidy amount gets credited directly to your bank account.
Features of the Solar Panel Installation Under PM Surya Ghar Yojana
- Minimum 5-year warranty on the entire solar system.
- Free maintenance from the vendor for 5 years.
- Systems must meet the domestic content requirement (made in India).
- High-quality components and minimum technical standards as defined by MNRE.
Documents Required for Solar Panel Subsidy Application
- Consumer account number or electricity bill
- Identity proof (Aadhaar, PAN)
- Address proof
- Bank account details (cancelled cheque/passbook)