How much subsidy does PM Surya Ghar give on rooftop solar in 2026?

Under the PM Surya Ghar Muft Bijli Yojana, the central subsidy in 2026 is ₹30,000 for a 1 kW system, ₹60,000 for 2 kW, and ₹78,000 for 3 kW and above — the ₹78,000 is a cap, so systems larger than 3 kW receive the same amount. On top of the central subsidy, some states add a top-up: Rajasthan gives an extra ₹17,000 via RREC and Uttar Pradesh adds ₹15,000 per kW. A typical 3 kW system costing ₹1,55,000–1,80,000 falls to roughly ₹77,000–1,02,000 net after the ₹78,000 central subsidy, sometimes lower with a state top-up.

What is net metering and how does it help solar owners?

Net metering is the arrangement that makes rooftop solar financially attractive. Your bidirectional meter records both the units you draw from the grid and the surplus units your panels export during the day. You are billed only on the net — consumption minus export. In most states, surplus credits carry forward for up to 12 months, so the excess your system generates on long summer days offsets the units you draw on cloudy days or at night. This effectively lets you use the grid as a free battery. Without net metering, daytime surplus would be wasted; with it, nearly every unit your system produces reduces your bill.

How do I calculate solar rooftop ROI online?

Use CalcDesk's free Solar Rooftop ROI Calculator. Enter your monthly electricity bill or units, your state, the system size you are considering, and the installed cost. The tool applies the PM Surya Ghar central subsidy (and state top-ups where relevant), estimates monthly generation and savings, and computes your net cost, payback period and 25-year return. You can compare 3 kW versus 5 kW, or model different tariffs, to find the right size. It turns a confusing quotation into a clear payback number, and pairs with the Electricity Bill Calculator so you see both your current bill and the solar-reduced bill side by side.

Solar Rooftop ROI India 2026 — PM Surya Ghar Payback | CalcDesk

Solar Rooftop ROI in India 2026: PM Surya Ghar Subsidy, Cost, and Payback Period

Q: What is the payback period for rooftop solar in India?

For a residential rooftop system in 2026, the payback period is typically 5 to 8 years, depending mainly on your electricity tariff. In high-tariff states like Maharashtra it can be as short as 4–6 years because each unit of solar you self-consume replaces a costly grid unit. In low-tariff areas like Delhi it stretches to 6–8 years. After payback, the system keeps generating almost free electricity for its remaining life — panels are warranted for 25 years — giving you 17–20 years of pure savings. Over the full 25-year life, total savings commonly reach ₹6–8 lakh for a 3 kW system.

Q: How much electricity does a 3 kW solar system generate?

A 3 kW rooftop solar system in most Indian states generates roughly 360–400 units per month, or about 12–13 units a day on average across the year. Output is higher in sunny months and in high-irradiance states like Rajasthan and Gujarat, and lower in monsoon or cloudy periods. For a household consuming around 300–400 units a month, a 3 kW system can offset most or all of the bill, especially when combined with net metering that lets you bank surplus daytime generation against night-time consumption. Actual output depends on shading, panel orientation, tilt and local weather, so a site assessment refines the estimate.

📅 July 2026 ⏱ 12 min read 📋 Updated 2026-27

A 3 kW rooftop solar system that cost ₹1.8 lakh two years ago now costs a household about ₹77,000–1,02,000 net after the ₹78,000 PM Surya Ghar subsidy — and it pays that back in 5–7 years while running for 25. That is the arithmetic driving India’s rooftop boom, and understanding your own solar rooftop ROI India 2026 is the difference between a smart investment and an oversized, oversold system.

This guide covers the PM Surya Ghar Muft Bijli Yojana subsidy structure, real 2026 costs, generation numbers, net metering, state top-ups, and three worked examples. Run your own numbers on CalcDesk’s free Solar Rooftop ROI Calculator, and see your current bill first with the India Life energy tools.

What PM Surya Ghar Actually Offers

The PM Surya Ghar Muft Bijli Yojana, launched on 29 February 2024 with a total allocation of ₹75,021 crore, is India’s flagship residential rooftop solar scheme. The Union Budget 2026-27 earmarked a further ₹22,000 crore for it. As of May 2026, around 40 lakh households had been solarised under the scheme (per Minister Pralhad Joshi), and cumulative rooftop solar in India crossed 12 GW in 2025.

The scheme’s core benefit is a direct central subsidy credited to your bank account after installation. A common misconception is that the subsidy scales endlessly with system size — it does not. The subsidy is capped at ₹78,000 for any system of 3 kW or more. You apply at pmsuryaghar.gov.in using your electricity consumer number and Aadhaar OTP. Installations must use ALMM-compliant panels (brands like Adani Solar, Vikram Solar, Waaree Energies and RenewSys are listed).

How Solar ROI Is Calculated

Solar Payback & ROI

Net cost = System cost − Central subsidy − State top-up
Monthly saving = Units generated × Your grid tariff per unit
Payback (years) = Net cost ÷ (Monthly saving × 12)

25-year saving = (Annual saving × 25) − Net cost − maintenance

The single biggest driver of ROI is your grid tariff, not sunshine. Every unit your panels produce replaces a grid unit you would otherwise buy, so a high-tariff household saves more per unit and pays back faster. That is why the same 3 kW system pays back in 4–6 years in Maharashtra but 6–8 years in low-tariff Delhi. See how your current tariff works in the electricity bill guide.

Table 1 — PM Surya Ghar Subsidy Slabs (2026)

System size	Central subsidy	Typical system cost	Net cost after subsidy
1 kW	₹30,000	₹60,000–70,000	₹30,000–40,000
2 kW	₹60,000	₹1,10,000–1,25,000	₹50,000–65,000
3 kW	₹78,000	₹1,55,000–1,80,000	₹77,000–1,02,000
5 kW	₹78,000 (cap)	₹2,50,000–3,00,000	₹1,72,000–2,22,000
10 kW	₹78,000 (cap)	₹5,00,000–6,00,000	₹4,22,000–5,22,000

Note the cap: beyond 3 kW the subsidy stays at ₹78,000, so the sweet spot for most homes is 3 kW unless consumption is high. Rajasthan adds ~₹17,000 (RREC) and UP ~₹15,000/kW on top of the central amount.

Table 2 — State-wise Payback Period Comparison

For a 3 kW system generating ~380 units/month, net cost ≈ ₹90,000.

State	Avg tariff (top slab)	Monthly saving	Payback
Maharashtra	₹9–11/unit	≈ ₹3,400	4–5 years
Rajasthan (+ top-up)	₹7/unit	≈ ₹2,650	4–5 years
Gujarat	₹5–6/unit	≈ ₹2,100	5–6 years
Karnataka	₹6–7/unit	≈ ₹2,400	5–6 years
Uttar Pradesh (+ top-up)	₹6/unit	≈ ₹2,280	5–6 years
Delhi	₹4.50–6.50/unit	≈ ₹2,000	6–8 years

Worked Example 1 — 3 kW, Delhi Household (180 Units/Month)

Base case, modest consumption

System: 3 kW, cost ₹1,70,000. Central subsidy ₹78,000 → net cost ₹92,000. Generation ≈ 380 units/month, but household uses only 180 — surplus 200 units banked via net metering.

Effective monthly saving on 180 self-consumed units at ₹5/unit + credit on 200 exported ≈ ₹900 + ₹700 = ₹1,600. Annual ≈ ₹19,200.

Payback ≈ ₹92,000 ÷ ₹19,200 ≈ 4.8 years thanks to net-metering credits. For a low-consumption home, a smaller 2 kW system may actually give a better fit and faster payback.

Worked Example 2 — 5 kW, Maharashtra AC Household

High-consumption home, edge case

System: 5 kW, cost ₹2,80,000. Subsidy capped at ₹78,000 → net cost ₹2,02,000. Generation ≈ 630 units/month, nearly all self-consumed by an AC-heavy home.

These units would otherwise sit in Maharashtra’s ₹9–11/unit top slabs. Monthly saving ≈ 630 × ₹9.5 = ₹5,985. Annual ≈ ₹71,800.

Payback ≈ ₹2,02,000 ÷ ₹71,800 ≈ 2.8 years. High tariff + high self-consumption is the fastest-payback scenario in India. Over 25 years this household saves well over ₹12 lakh.

Worked Example 3 — Rajasthan Rural Household (Central + State Top-up)

Combined subsidy, high-value scenario

System: 3 kW, cost ₹1,60,000. Central subsidy ₹78,000 + Rajasthan RREC top-up ₹17,000 = ₹95,000 total → net cost ₹65,000.

Rajasthan’s high solar irradiance lifts generation to ≈ 420 units/month. Saving at ₹7/unit ≈ ₹2,940/month, ₹35,280/year.

Payback ≈ ₹65,000 ÷ ₹35,280 ≈ 1.8 years. The state top-up plus strong sunshine makes Rajasthan among the best rooftop-solar geographies in the country. An SBI PM Surya Ghar loan at ~7% (collateral-free up to 3 kW) can fund it with EMIs lower than the saving.

PM Surya Ghar Application — Step by Step

The subsidy is only worthwhile if you navigate the process correctly, and it is more straightforward than most people expect. First, register on the national portal pmsuryaghar.gov.in using your electricity consumer number, mobile number and Aadhaar OTP. Next, log in and apply for rooftop solar, selecting your discom and sanctioned load. Once your discom grants feasibility approval, choose a registered, ALMM-compliant vendor from the portal’s list and get the system installed.

After installation, submit the plant details and apply for a net-metering connection. The discom inspects the installation and installs a bidirectional meter. Once commissioning is verified and the report is generated on the portal, you upload your bank account and a cancelled cheque, and the central subsidy is credited directly to your account within about 30 days. Keeping your consumer number, Aadhaar and bank details ready upfront, and choosing a vendor experienced with the portal, avoids the delays that frustrate first-time applicants.

Solar Loan vs Upfront Payment

You do not need the full net cost in hand to go solar. Under PM Surya Ghar, collateral-free loans at around 7% interest are available for systems up to 3 kW from SBI and other banks. The attraction is simple: for many households the monthly EMI is lower than the monthly electricity saving, so the system is cash-flow positive from the first month even while you are still repaying.

Consider a ₹90,000 net-cost 3 kW system financed over 5 years at 7% — the EMI is roughly ₹1,780 a month, while the electricity saving is often ₹2,000–3,400. You pocket the difference immediately and own a fully paid, free-generating asset after five years. Paying upfront avoids interest entirely and gives the best absolute return, but the loan route makes solar accessible without touching savings or breaking a fixed deposit. Either way, because the panel life is 25 years, the long-run economics remain strongly positive.

Common Solar Rooftop Mistakes

Oversizing for the subsidy. Buyers install 5 kW expecting more subsidy, but the subsidy caps at ₹78,000 beyond 3 kW. Size to your consumption, not the incentive.
Ignoring net metering approval. Without a net-metering connection, your daytime surplus is wasted. Confirm your discom sanctions net metering before installing.
Choosing non-ALMM panels to save money. Cheaper non-listed panels disqualify you from the PM Surya Ghar subsidy — a false economy that costs ₹78,000.
Underestimating shading and roof orientation. A shaded or poorly angled roof can cut generation 20–30%, wrecking the payback maths. Insist on a proper site assessment.
Forgetting maintenance. Panels need periodic cleaning; dust in dry regions can cut output 10–15%. Budget a small annual cleaning cost into your ROI.

Tips to Maximise Your Solar ROI

Right-size to your bill. A system that covers 90–100% of consumption pays back fastest — model it before signing any quote.
Stack the state top-up if you are in Rajasthan, UP or another top-up state — it can cut net cost by ₹15,000–17,000.
Use the SBI PM Surya Ghar loan at ~7%, collateral-free up to 3 kW, so your EMI is lower than your monthly saving from day one.
Self-consume during the day where possible — running the washing machine or pump at noon uses free solar directly rather than banked credits.
Think of it as a 25-year investment. The post-payback years are almost pure return — see how that compounds in the power of compounding guide, and pair with the LPG Cost Savings Calculator for full home-energy planning.

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Enter your bill, state and system size. Get net cost after PM Surya Ghar subsidy, monthly saving, payback period and 25-year return.

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Frequently Asked Questions

Under PM Surya Ghar Muft Bijli Yojana, the central subsidy in 2026 is ₹30,000 for 1 kW, ₹60,000 for 2 kW, and ₹78,000 for 3 kW and above — ₹78,000 is a cap, so larger systems receive the same amount. On top, some states add a top-up: Rajasthan gives an extra ₹17,000 via RREC and Uttar Pradesh adds ₹15,000 per kW. A typical 3 kW system costing ₹1,55,000–1,80,000 falls to roughly ₹77,000–1,02,000 net after the ₹78,000 central subsidy, sometimes lower with a state top-up.

For a residential rooftop system in 2026, payback is typically 5 to 8 years, depending mainly on your electricity tariff. In high-tariff states like Maharashtra it can be as short as 4–6 years because each solar unit you self-consume replaces a costly grid unit. In low-tariff areas like Delhi it stretches to 6–8 years. After payback, the system keeps generating almost free electricity for its remaining life — panels are warranted for 25 years — giving 17–20 years of pure savings. Over the full 25-year life, total savings commonly reach ₹6–8 lakh for a 3 kW system.

A 3 kW rooftop system in most Indian states generates roughly 360–400 units per month, about 12–13 units a day averaged across the year. Output is higher in sunny months and in high-irradiance states like Rajasthan and Gujarat, and lower in monsoon or cloudy periods. For a household consuming around 300–400 units a month, a 3 kW system can offset most or all of the bill, especially with net metering that banks surplus daytime generation against night consumption. Actual output depends on shading, orientation, tilt and weather, so a site assessment refines the estimate.

Net metering is the arrangement that makes rooftop solar financially attractive. A bidirectional meter records both the units you draw from the grid and the surplus your panels export during the day. You are billed only on the net — consumption minus export. In most states, surplus credits carry forward up to 12 months, so the excess generated on long summer days offsets units drawn on cloudy days or at night. This effectively lets you use the grid as a free battery. Without net metering, daytime surplus would be wasted; with it, nearly every unit your system produces reduces your bill.

For most households paying ₹2,000 or more a month in electricity, rooftop solar is clearly worth it in 2026. The PM Surya Ghar subsidy cuts upfront cost by up to ₹78,000, collateral-free loans at around 7% are available from SBI and others, and net metering captures the value of every unit generated. With a 5–7 year payback and 25-year panel life, the return comfortably beats a fixed deposit. The main caveats are having a suitable shade-free roof you control, and choosing an ALMM-compliant installer. For high-tariff, high-consumption homes, the case is even stronger.

Use CalcDesk’s free Solar Rooftop ROI Calculator. Enter your monthly bill or units, your state, the system size you are considering, and the installed cost. The tool applies the PM Surya Ghar central subsidy (and state top-ups where relevant), estimates monthly generation and savings, and computes net cost, payback period and 25-year return. You can compare 3 kW versus 5 kW, or model different tariffs, to find the right size. It turns a confusing quotation into a clear payback number, and pairs with the Electricity Bill Calculator so you see both your current bill and the solar-reduced bill side by side.

⚠️ Disclaimer: Subsidy amounts, system costs and state top-ups change over time; figures here are indicative for 2026 and for educational purposes only. Verify the current PM Surya Ghar subsidy and apply at pmsuryaghar.gov.in and check scheme details at mnre.gov.in before investing. This is not financial advice. Read full disclaimer →