Solar Panel ROI

The PM Surya Ghar subsidy structure

The PM Surya Ghar Muft Bijli Yojana (Feb 2024) gives a Central Financial Assistance of ₹30,000 per kW for systems up to 2 kW, ₹18,000 per kW for the next 1 kW, capped at ₹78,000 for a 3 kW system. Most states stack a smaller additional subsidy (Gujarat, Rajasthan, Maharashtra, UP). Net-metering credits the excess solar you export to the grid against your night-time consumption at the discom's retail tariff — effectively a 1:1 banking arrangement.

Worked example

A Bengaluru home with a 350-unit/month consumption (BESCOM tariff averaging ₹7.50/unit including fixed) pays roughly ₹2,625/month or ₹31,500/year. A 3 kW rooftop system generates ~12 units/day = 360 units/month at typical Indian insolation, fully offsetting the bill. Gross system cost ~₹1,80,000; after ₹78,000 PM Surya Ghar subsidy, net cost is ₹1,02,000. Payback: ₹1.02L ÷ ₹31,500 = ~3.25 years. Panels carry a 25-year linear warranty — the remaining 22 years are essentially free electricity, minus inverter replacement at year 10 (~₹25,000).

When solar makes sense

• Independent house / villa with 200+ sqft of unshaded south-facing roof
• Bills above ₹2,000/month — payback drops below 5 years
• State with active net-metering (most discoms now allow it under 10 kW)
• You plan to stay in the house 5+ years (adds property value otherwise)

Apartments and tenants typically can't benefit (no roof rights). Read the full deep dive in solar panel India ROI and compare with the electricity bill calculator to see your current spend.