Bill Calculations, Gas Costs and Checklists
PM Surya Ghar subsidy and net metering - what rooftop solar does to your electricity bill
The ₹30,000, ₹60,000 and ₹78,000 central assistance, how net metering shows on your bill, sizing to your units and a payback example in rupees.
Under PM Surya Ghar: Muft Bijli Yojana, launched in February 2024, households installing rooftop solar through the national portal receive central financial assistance (CFA) widely published as ₹30,000 for a 1 kW system, ₹60,000 for 2 kW and ₹78,000 for 3 kW or more (₹30,000 per kW for the first 2 kW plus ₹18,000 for the third kW, capped at ₹78,000). With net metering, units your panels export to the grid are set off against units you import, so your bill is charged on the net units. The bill does not always become zero: fixed charges, duty and minimum charges usually remain, and how surplus units are settled depends on your state's regulations. Payback is fastest for households paying high slab rates and slowest for those already inside a free-power limit.
Part of electricity bill calculation worked examples.
The central assistance at a glance
| System size | CFA (as widely published; confirm on the portal) |
|---|---|
| 1 kW | ₹30,000 |
| 2 kW | ₹60,000 |
| 3 kW and above | ₹78,000 (maximum) |
| Special category states and UTs (North-East, Uttarakhand, Himachal Pradesh, J&K, Ladakh, Andaman & Nicobar, Lakshadweep) | Higher rates reported: ₹33,000 per kW for the first 2 kW and ₹19,800 for the third kW |
| Group housing societies / RWAs (common facilities) | Per-kW assistance for common facilities, published as ₹18,000 per kW within a capacity limit |
Guidance published with the scheme links system size to monthly consumption: roughly 0–150 units → 1–2 kW, 150–300 units → 2–3 kW and above 300 units → above 3 kW. Some states add their own top-up subsidy. The scheme's outlay was announced as ₹75,021 crore, of which about ₹65,700 crore is for central financial assistance to households, with a target of one crore households. Terms can be revised, so check the national portal for the current amounts before signing a contract.
How you apply (outline)
- Register on the national PM Surya Ghar portal with your DISCOM consumer number.
- Apply for rooftop solar; the DISCOM checks feasibility.
- Choose a registered vendor and get a written quotation.
- Vendor installs; you apply for net meter installation.
- DISCOM inspects, installs the net meter and commissions the system.
- Submit bank details; CFA is credited to your account.
Collateral-free loans for small residential systems have been made available through public-sector banks under the scheme; compare interest and processing charges like any loan.
What net metering does to the bill
A net meter (bidirectional) records import (units drawn from the grid) and export (units sent to the grid). Your bill shows:
| Line | Example |
|---|---|
| Import units | 320 |
| Export units | 250 |
| Net units billed | 70 |
| Solar generation (if a separate generation meter exists) | 390 |
You are billed for 70 units at your slab rates. Fixed charges apply on your sanctioned load as before. If export exceeds import in a month, the surplus is usually carried forward as credit within a settlement period (often a financial year) and any balance at the end is paid at a rate set by the SERC, which is typically lower than the retail tariff. Rules differ by state and have been amended over time; read your SERC's rooftop solar or net metering regulations.
Worked payback example (illustrative)
A household using about 400 units a month in a state with slab rates where its top units cost ₹6–7.
| Item | Figure | Note |
|---|---|---|
| System | 3 kW | Within the full CFA |
| Installed price | ₹1,90,000 | Illustrative quotation |
| CFA | ₹78,000 | As published |
| Net cost | ₹1,12,000 | |
| Generation | 3 × 1,300 = 3,900 units a year | Illustrative, varies with location and shading |
| Average avoided rate | ₹5.60 per unit | Blend of top slabs and surcharge avoided, illustrative |
| First-year saving | about ₹21,800 | 3,900 × ₹5.60 |
| Simple payback | about 5 years | Before tariff increases |
With a 2% yearly rise in tariffs the payback shortens slightly. Run your own figures in the rooftop solar payback calculator. The calculator ignores inverter replacement, panel degradation and loan interest, which lengthen payback.
When solar saves less than you expect
| Situation | Why |
|---|---|
| Already inside a free-power limit | Little or nothing to save on the bill; see free electricity schemes |
| Oversized system | Surplus exports earn a lower settlement rate than your tariff |
| Shaded roof | Lower generation than the quotation assumes |
| Evening-heavy use under a ToD tariff | Exports happen in cheap solar hours; imports in expensive peak hours. See time-of-day tariff rules |
| Dust and no cleaning | Output falls noticeably in dry, dusty months |
| Net meter delay | No export credit until the net meter is installed |
Questions to put to the vendor in writing
- Is the vendor registered for your DISCOM on the national portal?
- Panel and inverter make, model and warranties (product and performance)?
- Expected annual generation and the assumptions behind it?
- Who applies for the net meter and who pays the meter cost?
- Structure height and wind resistance, earthing and lightning protection?
- After-sales service terms and response time?
Avoid vendors who promise a "zero bill" without seeing your bills, or who ask you to sign over the CFA.
See also: other ways to cut the bill and reading the net-metering lines on a bill.
Frequently asked questions
Can tenants or flat owners use PM Surya Ghar?
The scheme is for residential households with a suitable roof and their own DISCOM connection. Flat owners usually depend on the society: group housing societies and RWAs can install systems for common facilities. Check eligibility for your situation on the portal.
Do I still pay fixed charges with net metering?
Usually yes. Net metering reduces billed units, not the fixed charge for your connection, unless your state's regulations say otherwise.
Is the subsidy paid to me or the vendor?
Under the scheme, the CFA is credited to the beneficiary's bank account after commissioning.
Does solar help during a power cut?
A standard grid-tied net-metered system shuts down during a grid outage for safety. Backup needs a hybrid inverter and battery, at extra cost.
Sources and where to check
- PM Surya Ghar national portal — CFA amounts, registration and vendor list
- Ministry of New and Renewable Energy — scheme guidelines
- Ministry of Power — Electricity (Rights of Consumers) Rules on prosumers and net metering
- Maharashtra Electricity Regulatory Commission — example of state net metering regulations
