The PM Surya Ghar Muft Bijli Yojana puts a serious chunk of a residential rooftop system on the government's tab — and that's often what turns a hesitant homeowner into a signed deal. This guide explains the scheme at a high level, the current slab amounts, and exactly how to reflect the subsidy on a quotation and track its disbursal in evSuryam.
Overview
From your side as a vendor, the subsidy is a number that reduces what the customer pays you (or arrives as a separate government disbursal). evSuryam lets you show that reduction transparently on the quote and then reconcile the money when it lands — so your customer ledger always reflects reality.
public/images/docs/pm-surya-ghar-subsidy.pngAlways verify the latest figuresThe slab amounts, eligibility, and disbursal mechanics below are illustrative and were accurate to the May 2026 update. The National Portal revises these — confirm the current numbers on the official PM Surya Ghar portal before quoting them to a customer.
1. What the scheme is
PM Surya Ghar Muft Bijli Yojana is a central-government scheme that provides Central Financial Assistance (CFA) — a direct capital subsidy — to residential households installing grid-connected rooftop solar. The goals are to cut household electricity bills (the “Muft Bijli” / free-power framing) and accelerate rooftop adoption.
Key points that shape how you quote it:
- It applies to residential rooftop systems — not commercial or industrial.
- The subsidy is capacity-based, calculated in slabs by system size in kilowatts.
- It's paid as Direct Benefit Transfer to the beneficiary's bank account after installation and inspection, through the National Portal workflow.
2. Current subsidy slabs
The subsidy scales with capacity but is capped, so larger systems get the same maximum. The figures below are illustrative for the May 2026 update — verify the current numbers before relying on them.
| System capacity | Illustrative subsidy (CFA) | Notes |
|---|---|---|
| 1 kW | ~₹30,000 | Entry slab for small households. |
| 2 kW | ~₹60,000 | Roughly the 1 kW rate applied per kW. |
| 3 kW and above | ~₹78,000 (capped) | The cap — systems larger than 3 kW receive no additional CFA. |
Why the cap matters when you size a systemBecause the subsidy maxes out around 3 kW, the customer-economics sweet spot is often a system sized to their load that still captures the full cap. Use this when advising a homeowner — going from 3 kW to 5 kW adds full system cost but no extra subsidy.
3. Record the subsidy on a quote
Show the homeowner the honest math: the full system cost, the subsidy, and the net they actually pay. evSuryam gives you two clean ways to do this.
- Build the quotation as usual — panels, inverter, structure, BOS, and installation at their gross prices.
- Apply the subsidy using the dedicated Subsidy field, or add a negative line item labelled “PM Surya Ghar subsidy”.
- Enter the slab amount from the table above (verified against the portal).
- Save. The quote now shows the gross cost, the subsidy deduction, and the reduced net amount payable by the customer.
Keep GST on the gross valueThe subsidy reduces what the customer pays out of pocket, but GST is generally computed on the system's value before the government grant. Present the subsidy as a reduction to the payable total, not as a discount that shrinks the taxable base — confirm the treatment with your CA. See GST & compliance.
4. Track the disbursal
The subsidy is usually disbursed by the government after installation and inspection — sometimes straight to the customer's bank account, sometimes routed through your agency depending on the model. Either way, you reconcile it against the invoice as a tagged payment.
- Open the customer's invoice and click Record payment.
- Enter the subsidy amount and the date it was disbursed.
- Tag the payment as Government Subsidy so it's distinguishable from the customer's own instalments.
- Save. The invoice's outstanding balance drops by the subsidy, and your reporting can separate customer-paid revenue from government-paid revenue.
Tagging matters: it lets you answer “how much have we actually collected from the customer” versus “how much is pending government disbursal” at a glance. For the general payments flow, see Quotations & invoices.
5. The customer application flow
You'll be asked to guide homeowners through the National Portal. At a high level the journey runs:
- Register on the PM Surya Ghar National Portal with the consumer's electricity-connection details and DISCOM.
- Apply for feasibility approval from the DISCOM.
- Install the system through a registered vendor (you), once approved.
- Submit plant details and apply for a net-meter.
- Inspection & commissioning — the DISCOM installs the net-meter and issues a commissioning certificate.
- Subsidy release — the consumer submits bank details on the portal, and the CFA is transferred by Direct Benefit Transfer.
The subsidy follows commissioning, not signingMoney only flows after inspection and the commissioning certificate. Set customer expectations accordingly, and don't treat the subsidy as collected on your ledger until you've recorded the actual disbursal as a tagged payment.
What's next
Once the subsidy is on the quote and the deal is won, run the job through the installation pipeline — commissioning is the milestone that unlocks the disbursal. And keep the tax side clean with GST & compliance.