Solar Panel Cost After PM Surya Ghar Subsidy 2026

A 1kW solar system costs roughly ₹40,000 to ₹55,000 after subsidy, a 3kW system costs roughly ₹87,000 to ₹1,47,000 after subsidy, and a 5kW system costs roughly ₹2,02,000 to ₹3,02,000 after subsidy.

The **PM Surya Ghar subsidy caps at ₹78,000,** and it applies the same way regardless of city, as long as you use ALMM-listed panels and an MNRE-empanelled installer.

These are real post-subsidy numbers, not base prices. Here is exactly how they break down for each system size.

TL;DR

• PM Surya Ghar gives ₹30,000 for 1kW, ₹60,000 for 2kW, and a capped ₹78,000 for 3kW and above.

• A 3kW system is the most subsidy-efficient choice for most Indian homes.

• Net cost after subsidy: 1kW around ₹40,000 to ₹55,000, 3kW around ₹87,000 to ₹1,47,000, 5kW around ₹2,02,000 to ₹3,02,000.

• Payback period typically falls between 3.5 and 6 years, depending on your electricity bill.

• Subsidy is credited via DBT to your bank account within 30 days of DISCOM commissioning.

What Is the Solar Panel Cost After PM Surya Ghar Subsidy?

The cost after subsidy is your total installation price minus the central government's direct subsidy, which ranges from ₹30,000 to ₹78,000 depending on system size.

This is the number that actually matters when you are deciding whether to go solar.

What the scheme covers in 2026

PM Surya Ghar Muft Bijli Yojana is the central government's residential rooftop solar scheme, active since February 2024 and funded under a ₹75,021 crore outlay.

• Covers on-grid, grid-tied residential rooftop systems only.

• Off-grid and pure battery-backup systems do not qualify.

• Requires ALMM-listed (Approved List of Models and Manufacturers) panels.

• Requires installation through an MNRE-empanelled vendor. Use our

  solar EPC company checklist for India

  to verify a vendor before signing.

Why final cost is different from base cost

Base cost is what an installer quotes before subsidy. Final cost is what you actually pay after the subsidy lands in your bank account.

• Base cost for a 3kW system: roughly ₹1,65,000 to ₹2,25,000.

• Subsidy applied: ₹78,000.

• Final cost: roughly ₹87,000 to ₹1,47,000.

Many quotes only show the base price. Always ask your installer to show you the post-subsidy number in writing.

See our full solar panel price guide for India for a broader cost breakdown by panel type.

Who should read this guide

This guide is for homeowners comparing 1kW, 3kW, and 5kW systems and who want exact numbers before contacting an installer.

• 1 BHK to 2 BHK homeowners with modest electricity bills.

• 2 BHK to 4 BHK families checking if 3kW fits their consumption.

• Larger homes or those with high AC load considering 5kW.

If you have not started planning yet, our guide on how to plan rooftop solar for your home is a good starting point.

How PM Surya Ghar Subsidy Works

The subsidy works on a slab structure: ₹30,000 per kW for the first 2kW, then ₹18,000 for the next 1kW, capped at ₹78,000 total for any system 3kW or larger.

Subsidy amount for 1kW, 2kW, and 3kW systems

A 5kW system still gets the same ₹78,000 cap. The subsidy does not increase beyond 3kW under the central scheme.

Why subsidy is capped at ₹78,000

The cap exists because the scheme is designed to support typical household consumption, not large or commercial-scale systems. Most Indian homes use 200 to 400 units per month, which a 2kW to 3kW system comfortably covers.

• A 3kW system is the subsidy "sweet spot," getting maximum support for moderate household load.

• Going beyond 3kW means paying full price per kW for the extra capacity, with no added subsidy.

If you are in Gujarat, check our dedicated breakdown of the solar subsidy in Gujarat for 2026 for any state-level top-ups that apply on top of this central amount.

When the subsidy is credited to your bank account

The subsidy is credited via Direct Benefit Transfer (DBT), straight to your bank account, within 30 days of DISCOM commissioning and net meter installation.

• Step 1:

  Installer completes the system and applies for net metering.

• Step 2:

  DISCOM inspects and commissions the net meter.

• Step 3

  : Subsidy is released to your linked, Aadhaar-seeded bank account.

Pro tip: Make sure your bank account is NPCI DBT-linked before applying. An inactive DBT link is one of the most common reasons subsidy payments get delayed.

Which applicants are eligible for the subsidy

Most residential electricity connection holders with a suitable rooftop qualify, with a few exceptions.

• Must be an Indian resident with a valid residential electricity connection.

• Must have shadow-free rooftop space (roughly 100 sq. ft. for 1kW, 300 sq. ft. for 3kW).

• One subsidy per household, available only once.

• Tenants can apply with a No Objection Certificate (NOC) from the homeowner.

• If you live in a flat, our

  apartment solar installation guide

  covers society-level approvals in more detail.

Solar Panel Cost After Subsidy by System Size

The net cost scales with system size, but not in a straight line, because the subsidy share shrinks as a percentage once you cross 3kW. Here is the real math for each size.

1kW solar panel cost after subsidy

A 1kW system generates roughly 4 to 5 units per day, enough for a small home with basic lighting, fans, and a refrigerator.

3kW solar panel cost after subsidy

A 3kW system generates roughly 12 to 14 units per day, enough to run a 1.5-ton AC plus regular household appliances.

5kW solar panel cost after subsidy

A 5kW system generates roughly 18 to 22 units per day, suited for larger homes or multiple AC units.

Which home size suits each system

• 1kW

  : Small 1 BHK homes, light consumption, minimal AC usage.

• 3kW

  : Standard 2 BHK to 3 BHK homes with one AC and regular appliance load.

• 5kW

  : Larger 3 BHK to 4 BHK homes, multiple ACs, or homes planning higher future consumption.

See our picks for the best solar panels for home in India to compare panel options across these system sizes.

Real Price Breakdown for Homeowners

Every solar quote should break down into four numbers: base cost, subsidy, net cost, and payback period. If your installer cannot show you all four clearly, ask again.

Cost before subsidy

Subsidy amount

Net cost after subsidy

Daily generation and monthly savings

Actual savings depend on your local electricity tariff and how much of your generated power you self-consume versus export.

Payback period for each system

Most residential systems pay back their net cost within 3.5 to 6 years, after which electricity generation is effectively free for the remaining system life.

• Higher electricity bills shorten payback time.

• Systems closer to actual consumption (rather than oversized) pay back faster.

• After payback, the system continues generating for 20+ more years. Read our full guide on the

  solar payback period in India

  for a size-by-size comparison.

What Affects Solar Panel Cost in India

System size sets the baseline, but six other factors decide where your final quote lands within the typical price range.

1. Panel quality and brand

Tier 1, BIS-certified, ALMM-listed panels cost more upfront but carry longer warranties and more stable output over 25 years.

2. Inverter type

String inverters cost less and suit most homes, while hybrid inverters cost more but support battery backup integration. See our solar inverter guide for India for a full comparison.

3. Mounting structure

Sloped roofs and elevated structures for flat roofs add to installation cost compared to simple flat-roof mounting.

4. Roof type and installation complexity

RCC roofs are generally simpler and cheaper to work with than metal sheet roofs or roofs needing structural reinforcement.

5. Net metering and approvals

DISCOM net metering charges and approval timelines vary by state and can add to your total project timeline, though typically not to the equipment cost itself. Learn more in our guide on net metering and solar income in Gujarat.

6. Warranty and service support

Installers offering longer service visits and stronger after-sales support may quote slightly higher, but this often reduces long-term maintenance costs.

Which System Size Should You Choose?

The right system size matches your average monthly electricity bill, not your roof's full available space. Oversizing wastes subsidy efficiency, and undersizing limits your savings.

1kW solar system for small homes

• Best for homes with a monthly bill under ₹1,000 and minimal AC usage.

• A small 1 BHK with basic lighting, fans, and a refrigerator fits this size well.

3kW solar system for average family homes

Best for most 2 BHK to 3 BHK homes with a monthly bill between ₹2,000 and ₹3,500. This is the size that gets the full subsidy benefit most efficiently.

5kW solar system for larger homes

Best for homes with a monthly bill above ₹4,000, multiple AC units, or higher future consumption plans, such as an EV charger.

How to choose based on electricity bill and roof space

• Check your last 6 months of electricity bills and find your average monthly consumption in units.

• Match that consumption against the daily generation table above.

• Confirm your rooftop has enough shadow-free area for your chosen system size.

For a deeper look at the savings side, see how solar can reduce your electricity bill in Gujarat.

Pro tip: If your bill sits between two system sizes, lean toward the smaller size first. You can always expand later, but oversizing upfront means paying full price for capacity you may not use.

What Homeowners Usually Ask Before Buying

1. What is cost of solar after subsidy in India?

It depends on system size. A 1kW system costs ₹40,000 to ₹80,000, a 3kW system costs ₹87,000 to ₹1,47,000, and a 5kW system costs ₹2,02,000 to ₹3,02,000 after subsidy.

2. What is solar cost for home after subsidy?

Most homes choose a 3kW system, which costs ₹87,000 to ₹1,47,000 after the ₹78,000 central subsidy is applied.

3. Is 1kW enough for a house?

A 1kW system suits only very small homes with light electricity use. Most family homes with even one AC unit need at least 3kW.

4. Is 3kW the best option for most families?

Yes, for typical 2 BHK to 3 BHK homes. It captures the full ₹78,000 subsidy cap while matching average Indian household consumption.

5. Is 5kW worth the extra cost?

Yes, if your monthly bill already exceeds ₹4,000 or you plan to add appliances, an EV charger, or more AC units in the near future.

6. How much can I save every month?

Savings range from ₹600 to ₹900 monthly for 1kW, ₹2,000 to ₹2,800 for 3kW, and ₹3,000 to ₹4,200 for 5kW, depending on your tariff and consumption pattern.

Subsidy Eligibility and Common Mistakes

Most subsidy delays and rejections come from preventable paperwork errors, not actual ineligibility.

Who can apply

Any Indian resident with a valid residential electricity connection and suitable rooftop space, applying for the first time for that household.

What documents are needed

• Latest electricity bill with current DISCOM consumer number.

• Aadhaar card.

• Bank passbook, with the account Aadhaar-seeded for DBT.

• House tax receipt (required in some states).

Common reasons for rejection

• Using non-ALMM-listed panels.

• Applying through a non-MNRE-empanelled vendor.

• Mismatched name or address between electricity bill and bank account.

Mistakes that delay subsidy approval

• Using an outdated DISCOM consumer number from an old bill.

• Inactive or non-Aadhaar-seeded bank account for DBT.

• Skipping net meter installation before claiming subsidy completion.

How to Apply for PM Surya Ghar Subsidy

The application runs through four stages, from registration to subsidy receipt, typically taking 45 to 90 days end to end.

1. Register on the official portal

Visit pmsuryaghar.gov.in, select the consumer option, and register using your mobile number and electricity bill details.

2. Choose an approved vendor

Select an MNRE-empanelled installer from the list shown on the portal for your DISCOM area.

3. Complete installation and inspection

The installer completes the system using ALMM-listed panels, then the DISCOM inspects the site and installs the net meter.

4. Receive subsidy in bank account

Once DISCOM commissioning is confirmed on the portal, the subsidy is credited via DBT within 30 days.

Solar Cost After Subsidy vs Without Subsidy

The subsidy changes solar from a long-payback investment into a short-payback one, which is why most homeowners should never skip applying for it.

Why subsidy changes the buying decision

• Without subsidy, a 3kW system payback can stretch to 6 to 8 years.

• With the ₹78,000 subsidy applied, payback typically drops to 3.5 to 5 years.

When a higher-capacity system makes more sense

If your consumption already justifies 5kW, the subsidy cap means you are paying full price for the additional 2kW beyond the 3kW mark, but the long-term savings on a higher bill usually still justify it.

How to compare installer quotes correctly

• Always compare net cost after subsidy, not base price alone.

• Check that the quote already factors in the correct subsidy slab for your system size.

• Ask for the subsidy timeline and DBT process the installer follows.

How Earthwave Solar Helps You Go Solar With PM Surya Ghar

Earthwave Solar is an EPC company that handles your entire PM Surya Ghar journey, from site visit to subsidy documentation to final installation, across residential rooftop solar projects.

What Earthwave manages for residential projects:

• Initial consultation to assess your electricity bill and recommend the right system size

• Site visit to check roof condition and shadow-free area

• System design and transparent quotation showing base cost, subsidy, and net cost

• Subsidy documentation and DISCOM coordination

• Installation using ALMM-listed panels and

  Wave Inverters

• Final handover with complete documentation and monitoring setup

Why this matters for your subsidy:

Earthwave's empanelled process means your paperwork, net metering application, and DBT subsidy claim are handled correctly the first time, reducing the common delays homeowners face when applying independently.

Where Earthwave operates:

• Gujarat (Surat office)

• Madhya Pradesh (Bhopal office)

If you are considering a 1kW, 3kW, or 5kW rooftop system for your home or apartment, Earthwave Solar can walk you through the exact subsidy numbers for your specific consumption and roof size.

Get in touch:

• Website:

  www.earthwavetech.in

• Contact Earthwave Solar

  for a personalized quote

• Surat office: +91 90336 07212

Frequently Asked Questions

1. What is solar panel cost in India?

Solar panel installation in India costs roughly ₹55,000 to ₹85,000 per kW before subsidy in 2026, depending on panel quality, inverter type, and roof complexity.

2. What is solar panel total cost after subsidy?

Total cost after subsidy ranges from ₹40,000 for a 1kW system to ₹3,02,000 for a 5kW system, depending on the system size and the applicable subsidy slab.

3. What is solar cost after subsidy in India?

For most homes choosing a 3kW system, the cost after the ₹78,000 central subsidy comes to roughly ₹87,000 to ₹1,47,000.

4. How much is the PM Surya Ghar subsidy for 3kW?

The subsidy for a 3kW system is capped at ₹78,000 under the central scheme. This same cap applies to any system 3kW or larger.

5. Does the subsidy change by state?

The central subsidy amount stays the same nationwide, but several states, including Uttar Pradesh, Delhi, and Gujarat, offer additional state-level top-up subsidies on top of the central amount.

6. How long does subsidy approval take?

The full process from application to subsidy credit typically takes 45 to 90 days, with the subsidy itself credited within 30 days of DISCOM commissioning.