Two government mechanisms make home solar much cheaper in India: a central subsidy for residential rooftop systems, and net metering that pays you for surplus generation. Here's how each works, in plain terms.
The residential rooftop subsidy
Under the central residential rooftop scheme (PM Surya Ghar: Muft Bijli Yojana), eligible households get a Central Financial Assistance subsidy on grid-connected rooftop solar. The structure is slab-based by system size, so the per-kW benefit tapers as the system grows, up to a capped amount for a typical home system. Some states add their own subsidy on top.
Because exact amounts and slabs are revised over time, always confirm the current figures on the official national portal rather than relying on a brochure.
How the process works
At a high level:
- Register on the national rooftop-solar portal with your electricity consumer details.
- Apply and get feasibility approval from your DISCOM.
- Get the system installed by a registered vendor using standard-compliant equipment.
- Net-metering is installed and the system is inspected/commissioned.
- The subsidy is credited to your bank account after commissioning and verification.
Only grid-connected systems installed through the proper process and registered vendors qualify. Off-grid (battery-only) home systems typically don't get this residential subsidy.
Net metering — getting paid for surplus
Net metering is what makes grid-tied solar economical:
- During the day you use solar directly; excess flows to the grid.
- Your bi-directional meter records both import and export.
- The DISCOM credits exported units against the units you import (say, at night). You're billed on the net.
Policies differ by state on system-size caps, whether credits carry to the next billing cycle, and settlement — so check your state's net-metering policy and your DISCOM's rules.
Practical tips
- Apply for net metering before or alongside installation, not after.
- Keep your electricity connection details and identity/bank documents ready for the portal.
- Use a registered vendor — it's required for both the subsidy and a clean net-metering approval.
- Size the system to your consumption; net-metering caps may limit how much surplus is credited.
The subsidy lowers your upfront cost and net metering improves your ongoing savings — together they shorten payback significantly. If the remaining upfront amount is still a hurdle, clean-energy financing can bridge it, repaid partly from the electricity you no longer buy.