PM Surya Ghar Yojana: Under this initiative, families will receive a subsidy covering 60% of the expenses for a solar plant with a capacity of up to 2 KW. For those interested in installing a 3 KW plant, an additional subsidy of 40% will be available for the 1 KW portion.
The total cost for establishing a 3 KW solar plant is approximately Rs 1.45 lakh, with the government contributing Rs 78,000 as a subsidy. To finance the remaining Rs 67,000, the government has arranged for an affordable bank loan, allowing banks to charge an interest rate that is only 0.5% above the repo rate. A national portal has been launched to facilitate this scheme. Interested individuals can apply through the consumer portal, where they will need to provide details such as their consumer number, name, address, and the desired capacity of the solar plant.
Distribution companies (discoms) will verify the submitted information and proceed with the necessary steps. Numerous vendors are already registered on the portal to install solar panels, allowing applicants to select a vendor of their choice. Once the installation is complete, the discom will implement net metering. This scheme was initiated by the government on February 13, 2024, with a budget allocation of Rs 75,021 crore, aiming to provide 300 units of free electricity to one crore households.
Additionally, families that install rooftop solar panels under this scheme can earn an annual income of Rs 15,000. To date, over 47.3 lakh individuals have applied for participation in the program.
Free Electricity Scheme and income opportunity
As part of the PM Surya Ghar Free Electricity Scheme, solar plants have been installed in 10.09 lakh homes across the nation as of March 10, 2025. Renewable Energy Minister Prahlad Joshi announced on his X handle that “India has reached a significant milestone in solar energy, with the Pradhan Mantri Surya Ghar Free Electricity Scheme empowering 10 lakh homes with solar energy.” A 1 KW solar plant generates approximately 4-5 units of electricity daily, meaning a 3 KW plant can produce around 15 units per day, totaling about 450 units in a month.
You can use this electricity. The remaining electricity will be returned through net metering and you will also get money for this electricity. The government says that you can earn about 15,000 rupees a year from this electricity.