How much rooftop area is required for a 2 kW or 3 kW solar system?

In India, standard crystalline solar PV panels require approximately 100 square feet (around 9.3 square meters) of shadow-free, unshaded roof space per 1 kW of installed capacity. Therefore, a 2 kW system requires ~200 sq ft, while a 3 kW system requires ~300 sq ft of clear terrace space.

Do I have to pay the full system cost upfront before receiving the subsidy?

Under the PM Surya Ghar national portal process, the consumer pays the net contract amount to the registered DISCOM-empanelled vendor or avails a concessional bank loan. Once the solar system is installed and the net meter is commissioned and inspected by your local electricity DISCOM, the central subsidy is transferred directly into your Aadhaar-linked bank account via Direct Benefit Transfer (DBT) within 30 days.

How does the concessional green solar loan work?

Public sector banks such as SBI, PNB, Canara Bank, and Bank of Baroda offer collateral-free rooftop solar loans up to ₹2,00,000 under PM Surya Ghar at a concessional interest rate of ~7.00% p.a. (repo rate + 0.5%). Because your monthly electricity bill savings (typically ₹1,800–₹2,800/mo) exceed the loan EMI (approx ₹1,350–₹1,900/mo), the system operates cash-flow positive with zero out-of-pocket strain.

What is the expected lifespan and warranty on a rooftop solar plant?

Tier-1 Domestic Content Requirement (DCR) compliant solar panels come with a 25-year performance warranty guaranteeing at least 80% generation efficiency at year 25. The on-grid inverter typically carries a 5 to 10-year warranty. With average payback periods ranging from 2.5 to 3.5 years, the remaining 21+ years generate completely free electricity.

MNRE Operational Guidelines • ₹75,021 Cr National Flagship Scheme

PM Surya Ghar Subsidy Calculator 2026

Estimate your official Central Financial Assistance (CFA) subsidy up to ₹78,000, state government top-up grants, net out-of-pocket costs, monthly electricity bill savings, and solar green loan EMIs.

Verified by Renewable Energy & Statutory Policy Desk

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Last Updated: October 2026 (MNRE Notification 318/17/2024)

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Authority: Ministry of New and Renewable Energy (pmsuryaghar.gov.in)

Solar System Parameters

Select your state and power consumption to calculate official central and state subsidies.

Select Your State / UTState Top-Up Subsidies Included

Official MNRE Central Financial Assistance (CFA) slabs apply nationwide.

Average Monthly Electricity Bill

₹

₹800₹15,000

At current rates, your recommended solar plant size is 3 kW.

Average Electricity Grid Tariff

₹/kWh

4 ₹/kWh12 ₹/kWh

Current state DISCOM domestic tariff per unit (average across slabs).

Concessional Solar Loan Estimator

SBI, PNB, and Canara Bank provide collateral-free rooftop solar loans up to ₹2 Lakhs under PM Surya Ghar at concessional interest rates (~7% p.a.).

Loan Duration

Years

3 Years10 Years

Interest Rate

5.5%9%

PM Surya Ghar Financial Assistance3 kW System

Total Government Subsidy (Direct Benefit)

₹78,000Govt covers 43% of cost

Central CFA Subsidy:₹78,000

State Top-Up Subsidy:₹0 (Standard)

Estimated Project Cost:₹1,80,000

Net Cost You Pay:₹1,02,000

Payback Period

3.1 YearsFree power thereafter

Monthly Savings

₹2,768/mo369 units/mo

25-Yr Net Savings

₹6,37,112Lifetime wealth created

Zero-Out-Of-Pocket Solar Loan Analysis5 Years @ 7%

Monthly Bill Savings:+₹2,768/mo

Monthly Bank Loan EMI:-₹2,020/mo

Net Monthly Cash Flow:+₹748/mo

🎉 Net Cash Positive From Day 1: Your monthly electricity bill savings (₹2,768) are higher than your loan installment (₹2,020). You install rooftop solar with virtually ₹0 upfront capital, and save extra cash every month!

Rooftop Space & Environmental Impact

Required Rooftop Area:300 sq ft(28 m²) shade-free

Annual Power Generated:~4428 kWhUnits per year

CO₂ Emission Reduced:3.63 Tonnes/yr≈ 163 trees planted

Position Zero AEO Definition: PM Surya Ghar Muft Bijli Yojana

The PM Surya Ghar: Muft Bijli Yojana is India’s national rooftop solar scheme targeting 1 Crore households with a ₹75,021 Crore outlay. It offers direct DBT subsidies of ₹30,000 for 1 kW, ₹60,000 for 2 kW, and a maximum of ₹78,000 for 3 kW and above for residential properties. Combined with state top-ups, systems deliver ~120 units/kW/month, reducing electricity bills to zero with a 2.5 to 3.5 year capital payback.

How PM Surya Ghar Subsidy is Calculated (Official Rules & Guidelines)

Statutory Central Financial Assistance (CFA) formulations notified by the Ministry of New and Renewable Energy (MNRE).

1. Central Financial Assistance (CFA) Slabs

Central government financial assistance is structured progressively to prioritize middle-class households:

• 1 kW System: Flat ₹30,000

• 2 kW System: ₹30,000 + ₹30,000 = ₹60,000

• 3 kW and above: ₹60,000 + ₹18,000 = ₹78,000 (Maximum Cap)

Any residential rooftop system larger than 3 kW (e.g., 4 kW, 5 kW, 10 kW) receives the fixed maximum residential ceiling of ₹78,000.

2. State Government Top-Up Grants

Several state governments provide substantial additional grants credited alongside the central subsidy:

• Uttar Pradesh (UPNEDA): Extra ₹15,000/kW (max ₹30,000)

• Total UP Subsidy: ₹90,000 for 2 kW | ₹1,08,000 for 3 kW

• Delhi: GBI of ₹2.00–₹3.00/kWh for 5 years

State subsidies drastically reduce out-of-pocket costs, shortening the payback period to under 2.3 years.

3. Net Out-Of-Pocket Cost & Payback Formula

The net consumer capital expenditure is computed as:

Net Investment = Benchmark Project Cost - (Central CFA + State Subsidy)

Payback Period (Years) = Net Investment / Annual Electricity Savings

4. Solar Energy Generation Metrics

Calculated using Indian national average solar insolation curves (~4.1 peak sun hours/day):

Monthly Generation = Capacity (kW) × 123 kWh (Units)

Monthly Bill Savings = Monthly Generation × Grid Tariff (₹/kWh)

Worked Examples: 2 kW vs 3 kW Rooftop Solar in Uttar Pradesh & All-India

Realistic step-by-step cost, subsidy, and bill savings breakdowns for typical Indian households.

Case 1: 2 kW System (All-India Standard)

Benchmark Project Cost:₹1,30,000

Central CFA Subsidy:-₹60,000

Net Cost You Pay:₹70,000

Monthly Generation:~246 Units (kWh)

Monthly Bill Savings (@ ₹7.50):₹1,845 / month

Payback Period:3.2 Years

💡 After 3.2 years, the entire system is fully paid for. Over the remaining 21.8 years of panel life, you enjoy 100% free electricity, generating over ₹4.1 Lakhs in net lifetime wealth.

Case 2: 3 kW System (Uttar Pradesh UPNEDA)

Benchmark Project Cost:₹1,80,000

Central CFA Subsidy:-₹78,000

UP State Subsidy (UPNEDA):-₹30,000

Net Cost You Pay:₹72,000

Monthly Generation:~369 Units (kWh)

Monthly Bill Savings (@ ₹7.50):₹2,768 / month

Payback Period:2.2 Years!

🌟 With combined Central and UP State subsidies totaling ₹1,08,000 (60% of total cost), payback is reached in just 26 months!

Official PM Surya Ghar Central Financial Assistance (CFA) Subsidy Slabs

National benchmark costs, central subsidies, state grants, and payback periods across capacities.

System Size (kW)	Est. Project Cost	Central Subsidy (CFA)	UP State Subsidy	Net Out-of-Pocket	Monthly Output	Payback Period
1 kW	₹65,000	₹30,000	₹15,000	₹20,000 – ₹35,000	~123 Units	2.8 – 3.2 Yrs
2 kW	₹1,30,000	₹60,000	₹30,000	₹40,000 – ₹70,000	~246 Units	2.1 – 3.1 Yrs
3 kW (Max Cap)	₹1,80,000	₹78,000	₹30,000	₹72,000 – ₹1,02,000	~369 Units	2.2 – 3.1 Yrs
4 kW	₹2,32,000	₹78,000 (Capped)	₹30,000	₹1,24,000 – ₹1,54,000	~492 Units	3.3 – 3.7 Yrs
5 kW	₹2,84,000	₹78,000 (Capped)	₹30,000	₹1,76,000 – ₹2,06,000	~615 Units	3.6 – 4.1 Yrs

Rooftop Solar Sizing & Space Requirement Guide

Match your household electricity bill to the optimal solar plant size and shade-free terrace space.

Small Homes (1–2 BHK)

Bills: ₹800 to ₹1,500/month (100–150 Units)

• System Size: 1 kW
• Rooftop Space: ~100 sq ft (9.3 m²)
• Subsidy: ₹30,000
• Net Cost: ~₹35,000

Medium Homes (2–3 BHK)

Bills: ₹1,500 to ₹3,000/month (150–300 Units)

• System Size: 2 kW
• Rooftop Space: ~200 sq ft (18.6 m²)
• Subsidy: ₹60,000
• Net Cost: ~₹70,000

Heavy Usage (3–4 BHK + ACs)

Bills: ₹3,000 to ₹6,000+/month (300+ Units)

• System Size: 3 kW (Max Subsidy)
• Rooftop Space: ~300 sq ft (27.9 m²)
• Subsidy: ₹78,000
• Net Cost: ~₹1,02,000

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Frequently Asked Questions: PM Surya Ghar Subsidy (MNRE Guidelines)

Clear answers to common questions in your preferred language.

Under the official MNRE Central Financial Assistance (CFA) guidelines, the maximum residential central subsidy is capped at ₹78,000 for rooftop solar systems of 3 kW capacity and above. For 1 kW systems, the subsidy is ₹30,000, and for 2 kW systems, it is ₹60,000. Additionally, states like Uttar Pradesh offer up to ₹30,000 in state top-up subsidies, raising the total assistance up to ₹1,08,000.