Solar Guides & Updates

PM Surya Ghar subsidy: how much you actually get, and how to claim it

PM Surya Ghar: Muft Bijli Yojana is the central government scheme that pays a fixed subsidy directly into your bank account when you install rooftop solar on a home. Here is what it covers and what the process actually looks like.

How much you get

The subsidy is tied to system size, not to what you spend. It is capped once you cross 3 kW, so a 5 kW system receives the same subsidy amount as a 3 kW one.

For most households across Tamil Nadu, a 3 kW system is the sweet spot: it covers a typical monthly bill of ₹3,000–₹5,000 and captures the full ₹78,000.

Who is eligible

• · The connection must be a residential one. Commercial and industrial connections are not covered by this scheme — they have separate benefits such as accelerated depreciation.
• · You need a valid electricity connection in your own name, and a roof you own or have clear permission to use.
• · The installation must be done by a vendor registered on the national portal, and must use panels and inverters from the approved lists.
• · The system must be grid-connected with net metering. Off-grid battery systems do not qualify.

The process, step by step

1. 1
   Register on the national portal You register with your electricity connection number and mobile number, then submit an application for the system size you want.
2. 2
   Wait for technical feasibility approval TANGEDCO checks whether your connection and local transformer can support the system. This is usually the step that takes the longest.
3. 3
   Installation Once approved, the system is installed. A straightforward residential rooftop job typically takes two to four days on site.
4. 4
   Inspection and net meter installation TANGEDCO inspects the installation and fits the bi-directional meter, then issues the commissioning certificate.
5. 5
   Submit bank details and receive the subsidy After commissioning, you upload your bank details and a cancelled cheque on the portal. The subsidy is credited directly by the central government.

Common mistakes

The two we see most often: starting installation before feasibility approval comes through, which can invalidate the claim, and using equipment that is not on the approved list to save a little money upfront. Both are avoidable, and both cost far more than they save.

Tamil Nadu's new ₹22,000 top-up: up to ₹1 lakh combined with the central subsidy

Tamil Nadu has announced its own rooftop solar incentive on top of the central PM Surya Ghar subsidy — the first time in years the state has added money to the central scheme rather than running a separate, smaller one of its own.

What was announced

In the Tamil Nadu government's Revised Budget for 2026–27, presented on 5 August 2026, the state introduced a new Rooftop Solar Subsidy Scheme offering domestic consumers an additional ₹22,000, layered on top of the central PM Surya Ghar subsidy. ₹50 crore has been allocated to fund it.

For a system above 3 kW, the central scheme already provides up to ₹78,000. Add the new state top-up and an eligible household can receive up to ₹1,00,000 in combined subsidy.

How to claim the Tamil Nadu top-up

The process is simple. There are only two steps, and the first one is the same installation journey you follow for the central subsidy.

1. Complete the installation journey. Installation, inspection, net metering and commissioning.
2. Wait for the central subsidy to be credited. Once it is, the state portal says your application data flows automatically for TEDA verification and state subsidy processing.

Why this matters for your decision

If you have been waiting to see whether a state incentive would appear before installing, this is that signal. Tamil Nadu joins states like Uttar Pradesh and Gujarat in stacking a state top-up onto the central scheme, and ₹50 crore has already been set aside to pay for it — this is a funded commitment, not just a statement of intent.

The state top-up is processed after the central subsidy is credited, so the sequence is straightforward: finish the installation, inspection, net metering and commissioning, and the rest follows. Your exact eligible amount depends on your system size and category, so we confirm your figure with you before installation.

How TANGEDCO net metering works in Tamil Nadu

Net metering is what makes rooftop solar worth it. Without it, any power your panels produce while you are out of the house is simply wasted. Here is how the mechanism works in practice.

The bi-directional meter

A normal meter counts in one direction: power coming into your home. When you install solar, TANGEDCO replaces it with a bi-directional meter that counts both directions separately — units you import from the grid, and units you export to it.

Your panels feed your home first. Anything your home is not using at that moment flows out to the grid and is recorded as an export. At night, or when it is cloudy, you draw from the grid as usual and that is recorded as an import.

How your bill is calculated

At the end of the billing cycle, your exported units are set against your imported units. You are billed on the net figure — hence the name. If you exported more than you imported, the surplus is generally carried forward as a credit to the next cycle rather than paid out in cash.

Note that fixed charges still apply. Net metering reduces your energy charges, but the standing charges tied to your connection remain on the bill. This is why a "zero bill" in practice usually means a very small bill rather than literally nothing.

Sizing matters more than you think

Because surplus export is credited rather than paid out generously, there is little financial sense in heavily oversizing a system beyond your actual consumption. A system matched to your usage pays back faster than an oversized one. This is the single most common thing homeowners get wrong when they are quoted purely on system size.

The approval sequence

• · Application and feasibility. TANGEDCO checks your connection capacity and local transformer loading against the system size you have asked for.
• · Sanction. Approval is issued for a specific capacity. Installing more than the sanctioned capacity causes problems at inspection.
• · Installation and testing. The system is installed, wired, earthed, and the inverter is configured for grid synchronisation.
• · Inspection and meter change. The bi-directional meter is fitted and the system is formally commissioned.

Solar for factories and mills: what the numbers look like

For a textile mill or an engineering unit anywhere in Tamil Nadu, electricity is often the second or third largest line item after raw material and labour. Solar changes that line permanently. Here is how the economics work.

Why commercial payback is faster than residential

Commercial and industrial connections do not receive the PM Surya Ghar subsidy, which sounds like a disadvantage. In practice, commercial payback is often quicker for three reasons: commercial tariffs per unit are considerably higher than domestic ones, consumption happens during daylight hours when panels are generating, and businesses can claim accelerated depreciation on the asset.

Accelerated depreciation

Under the Income Tax Act, solar assets qualify for accelerated depreciation, letting a business write off a large share of the system cost in the first year rather than spreading it thinly over decades. For a profitable company, this meaningfully reduces the effective cost of the system in year one. Your auditor is the right person to confirm exactly what your business can claim, since it depends on when the asset is commissioned and on your tax position.

Daytime load is the key variable

Solar generates between roughly 6am and 6pm. The closer your operations match that window, the better the return. A spinning mill running two day shifts, a cold storage facility with compressors running through the afternoon, or an office with heavy air-conditioning load are all near-ideal. A unit that runs mainly at night will see a weaker case unless it goes down the open access route.

Three ways to fund it

What to check before you commit

• · Roof structural condition and remaining sheet life. Retrofitting solar onto a roof you will need to replace in three years is an expensive mistake.
• · Your last twelve months of bills, not one month. Seasonality matters, particularly for agro-processing and seasonal manufacturing.
• · Sanctioned load and contract demand, which determine what capacity you are permitted to install.
• · Shading from adjacent buildings, water tanks, and existing roof equipment across the full day, not just at noon.