PM Surya Ghar Muft Bijli Yojana — 300 Units Free Electricity Explained
The PM Surya Ghar Muft Bijli Yojana, launched by the Government of India in February 2024, aims to install rooftop solar on 1 crore homes by March 2027. The scheme's promise of "300 units free electricity" is real — but it works through solar generation, not a direct grant.
What Does "300 Units Free" Actually Mean?
Here's exactly how it works:
- You install a 3kW rooftop solar system on your home.
- In a city with 5+ peak sun hours, your 3kW system generates ~390–480 units/month.
- If your monthly consumption is 300 units, your solar system generates more than you consume.
- The surplus units are exported to the grid and credited to your account via net metering.
- At the end of each billing cycle, your bill shows ₹0 (or even a credit).
The "free" electricity is your own solar-generated power — you own the panels, they generate power, you pay nothing per unit for that power.
PM Surya Ghar Subsidy — How Much You Get
| System Size | Subsidy Amount | Monthly Generation (5 PSH) | Effective Free Units |
|---|---|---|---|
| 1 kW | ₹30,000 | ~130 units | ~130 units free |
| 2 kW | ₹60,000 | ~260 units | ~260 units free |
| 3 kW ← Best for 300 free | ₹78,000 | ~390 units | 300+ units free |
| 4 kW | ₹78,000 (capped) | ~520 units | All home usage free |
| 5 kW | ₹78,000 (capped) | ~650 units | All usage free + export |
Who Is Eligible?
- ✅ Indian residential consumers with a domestic DISCOM connection
- ✅ Own or have permission to install on the rooftop (landlord NOC for tenants)
- ✅ No active solar subsidy already claimed for the same property
- ✅ System must be installed by an MNRE-empanelled vendor
- ❌ Commercial, industrial, or agricultural connections are not eligible
- ❌ Gated housing society common areas are not individually eligible (apply as society)
How to Apply — Step by Step
- Visit pmsuryaghar.gov.in on your phone or computer.
- Register using your mobile number (OTP verification) and Aadhaar.
- Enter your DISCOM and consumer number (from your electricity bill).
- Submit application — DISCOM approves feasibility in 7–15 working days.
- Get 3 quotes from MNRE-empanelled vendors — choose the best.
- Installation — typically 2–4 days for a 3kW residential system.
- DISCOM inspection and net meter installation — 15–30 days.
- Upload commissioning certificate on the portal.
- Receive ₹78,000 subsidy as DBT in your bank account within 30 days.
Use our Subsidy Calculator to confirm your exact eligible amount before applying.
State-wise: Are There Additional Subsidies on Top?
Several states offer additional subsidies over and above the central ₹78,000:
- Delhi: ₹2/unit Generation Based Incentive (GBI) for exported units
- Gujarat: Additional ₹10,000–20,000 state subsidy for certain categories
- Himachal Pradesh: Additional subsidies for hill areas
- Most other states: Only central PM Surya Ghar subsidy applicable
Check our State-wise Subsidy Calculator for your state's specific benefits.
Common Mistakes to Avoid
- ❌ Installing before applying — You must get DISCOM approval first, otherwise subsidy is denied
- ❌ Using non-empanelled vendor — Subsidy is blocked; always verify at pmsuryaghar.gov.in
- ❌ Undersizing the system — A 2kW system generates only ~260 units; for 300 free units you need 3kW
- ❌ Wrong consumer category — Apply under domestic/residential, not commercial