The PM Surya Ghar Muft Bijli Yojana pays up to ₹78,000 in central financial assistance for residential rooftop solar, but the full amount is only available when the installed…
The PM Surya Ghar Muft Bijli Yojana pays up to ₹78,000 in central financial assistance for residential rooftop solar, but the full amount is only available when the installed inverter carries BIS IS 16221 (Part 2):2015 certification and appears on MNRE’s ALMM List II. Zenergize solar inverters hold both certifications, making buyers eligible for the complete subsidy. This guide explains which inverters qualify, how the subsidy is calculated, and the exact nine-step application process.
In this article:
A homeowner in Kota, Rajasthan received a solar installer’s quote in May 2026. The proposed 3 kW rooftop system was priced at ₹1.65 lakh. The installer referenced a government subsidy but could not say whether the quoted inverter model appeared on MNRE’s ALMM database. After two follow-up calls, the homeowner still had no answer.
The PM Surya Ghar Muft Bijli Yojana pays up to ₹78,000 toward a 3 kW residential rooftop system, but only when the installed inverter holds both BIS IS 16221 (Part 2):2015 certification and an MNRE ALMM List II listing. Zenergize solar inverters carry both certifications. The scheme has added 9.56 GW of rooftop solar capacity and benefited 32.4 lakh households as of March 2026, per SolarQuarter and the Press Information Bureau.
PM Surya Ghar Muft Bijli Yojana is India’s largest residential rooftop solar programme, launched on 13 February 2024 with a total outlay of ₹75,021 crore. The programme aims to fund rooftop solar installations in one crore households by March 2027, delivering up to 300 units of free electricity per month to each participating household.
Four eligibility conditions must all be met for a residential buyer to claim the central financial assistance:
Buyers who meet all four conditions and use a qualifying inverter receive the central financial assistance as a direct bank transfer within 30 working days of DISCOM commissioning.
Two requirements must both be met for an inverter to qualify: BIS IS 16221 certification and MNRE ALMM List II listing.
BIS IS 16221 (Part 2):2015 is the Bureau of Indian Standards compulsory registration standard for power converters used in photovoltaic systems. From 30 June 2020, BIS certification under this standard became mandatory for all solar inverters sold or imported in India for grid-connected applications. Buyers who accept an inverter without a valid BIS registration mark and IS 16221 standard number are accepting an inverter that cannot legally be commissioned under PM Surya Ghar.
Since January 1, 2026, MNRE also mandates BEE (Bureau of Energy Efficiency) star labeling for all grid-connected inverters up to 100 kW. BEE labeling is a separate certification layer from BIS, measuring energy efficiency at specific operating loads. An inverter that holds valid BIS IS 16221 certification but does not carry a BEE efficiency label for systems commissioned after January 2026 may be rejected at the DISCOM verification stage. Some registered vendors have not updated their procurement specifications to reflect it. Verify this independently before signing any installation agreement.
ALMM (Approved List of Models and Manufacturers) is MNRE’s registry of solar equipment approved for central government-funded programmes. ALMM List I covers solar PV modules. ALMM List II covers inverters and power conditioning units. Only inverters on List II qualify for PM Surya Ghar central financial assistance.
As of June 2026, MNRE relaxed ALMM List II compliance for residential rooftop installations that do not claim central financial assistance, extending that exemption through March 31, 2027. India’s parallel June 2026 DCR solar mandate reinforces that domestically certified equipment is the only path to subsidy eligibility. For any installation claiming the PM Surya Ghar subsidy, ALMM List II compliance is mandatory without exception. A buyer who installs a non-ALMM inverter and then applies for CFA will be rejected regardless of BIS certification status, with no path to reimbursement.
Zenergize solar inverters hold BIS IS 16221 (Part 2):2015 certification and are listed on MNRE’s ALMM List II, qualifying buyers to access the full central financial assistance under the scheme. In January 2026, Zenergize presented India’s first fully indigenous SiC-based solar inverter to the Principal Scientific Adviser to the Government of India.
The central financial assistance is tiered by installed system capacity.
System Size
CFA Rate
Total Subsidy
1 kW
₹30,000 per kW (60% of cost)
₹30,000
2 kW
₹30,000 per kW (60% of cost)
₹60,000
3 kW
₹30,000 per kW (first 2 kW) + ₹18,000 (third kW, 40%)
₹78,000
Above 3 kW
Capped at 3 kW rate
₹78,000 maximum
A 3 kW residential rooftop system in India is currently priced between ₹1.5 lakh and ₹1.8 lakh fully installed. The ₹78,000 subsidy reduces the net investment to approximately ₹72,000-₹98,000, covering 43-52% of total installation cost. Annual net metering income of ₹17,000-₹18,000 from surplus electricity fed to the grid produces a payback period of 3-5 years, after which 300 units of free electricity per month offset grid consumption for the remaining system life.
Buyers who cannot fund the post-subsidy balance directly can access loans up to ₹20 lakh through 12 public sector banks including SBI, PNB, and Bank of Baroda, at interest rates between 7-13% per annum over tenures of 5-10 years.
The PM Surya Ghar application is completed through the national portal at pmsuryaghar.gov.in and follows nine steps from registration to subsidy disbursement.
Five documents are mandatory at the application stage:
All documents must match the name on the electricity connection. Mismatches between Aadhaar name and electricity bill name are the most common cause of application delays extending beyond the standard timeline.
Run these three checks before accepting any installation proposal.
If any of the three checks cannot be completed or produces a negative result, the inverter does not qualify for PM Surya Ghar. Buyers who discover non-compliance after installation bear the full cost of replacing the equipment, because DISCOM will not commission a net metering connection for hardware that does not comply. Zenergize’s analysis of solar inverter thermal derating and how it quietly costs ₹4,000 a year covers that calculation in detail.
Most PM Surya Ghar rejections fall into five categories.
Using a non-ALMM inverter. The most frequent rejection cause. An installer who sources a lower-cost inverter outside the ALMM List II, even one holding valid BIS certification, disqualifies the buyer from receiving any central financial assistance.
Choosing an unregistered vendor. Only vendors registered on the national portal can participate in PM Surya Ghar installations. Buyers who accept quotes from outside the portal’s district vendor list lose subsidy eligibility regardless of equipment compliance.
Ignoring the BEE labeling requirement. For systems commissioned after January 1, 2026, grid-connected inverters up to 100 kW must carry a BEE star label in addition to BIS certification. This requirement post-dates the scheme’s launch, and a number of registered vendors have not yet updated their procurement specifications to reflect it. To understand how inverter technology choices affect real-world performance in Indian conditions, see Zenergize’s guide on why transformerless inverters work better in India.
Incomplete or mismatched documentation. Applications where the Aadhaar name, electricity bill account name, or property documents reference different individuals experience processing delays that routinely extend beyond 45 working days.
Exceeding rooftop capacity. A shade-free area of 80-100 square feet per kW is the minimum rooftop requirement. An application specifying 3 kW on a rooftop with less than 240 square feet of usable, unshaded space will fail at DISCOM feasibility review, requiring a revised capacity specification and full resubmission.
The scheme crossed 40 lakh residential installations as of May 31, 2026, per Mercom India’s research tracking. From its February 2024 launch through March 20, 2026, the programme commissioned 26.21 lakh rooftop solar systems aggregating 9.56 GW of capacity, benefiting 32.4 lakh households, according to the Press Information Bureau. Central financial assistance of ₹16,061.12 crore had been disbursed by January 30, 2026, with 7,71,580 households achieving zero energy charges as of December 2025.
India added 7.1 GW of rooftop solar capacity in calendar year 2025, up 123% from 3.2 GW in 2024, with residential consumers accounting for approximately 76% of total installations, per Mercom India research. The IEA’s analysis of India’s rooftop solar programme notes that India’s renewable energy capacity forecast has been revised upward as a direct result of the residential solar support scheme.
With 40 lakh systems commissioned against a one crore household goal, approximately 60 lakh installations need to be completed in under 10 months. Subsidy funds remain available, and DISCOM processing timelines are shorter now than they were during the scheme’s busiest early months.
No. Only inverters that hold active BIS IS 16221 (Part 2):2015 certification and appear on MNRE’s ALMM List II qualify for PM Surya Ghar central financial assistance. Many inverters sold in India carry BIS certification without appearing on the ALMM List II. Buyers must verify both requirements independently before accepting any installation proposal.
Yes. Zenergize solar inverters hold BIS IS 16221 (Part 2):2015 certification and are listed on MNRE’s ALMM List II, meeting both mandatory requirements for PM Surya Ghar central financial assistance. Zenergize inverters are manufactured indigenously in India, qualifying for government-funded programmes that prioritise domestic production.
The maximum central financial assistance is ₹78,000, applicable to systems of 3 kW or above. A 2 kW system receives ₹60,000. A 1 kW system receives ₹30,000. Systems larger than 3 kW receive no additional subsidy beyond the 3 kW cap. The subsidy rate is 60% of cost for the first two kilowatts and 40% for the third kilowatt.
The official target is 30 working days from DISCOM commissioning. Buyers with complete, accurate documentation who select a registered vendor and use an ALMM List II-compliant inverter consistently report disbursement within the target window. Incomplete documentation or name mismatches are the primary causes of extended processing.
No. The scheme is restricted to Indian citizens with ownership of the residential property where the installation takes place. Tenants are not eligible for the residential central financial assistance component.
Post-installation maintenance and warranty obligations fall on the registered vendor for a defined period. Buyers should confirm warranty terms, on-site service response time, and spare part availability in writing before signing. Zenergize provides after-sales support through an India-based service team, with indigenous manufacturing enabling component availability without the import lead times that affect foreign-origin inverter brands.
PM Surya Ghar is still processing new applications, with roughly 60 lakh installations still needed before March 2027. Any eligible homeowner who installs a BIS IS 16221 certified, ALMM List II-listed inverter can access the ₹78,000 subsidy and 300 units of free monthly electricity. Zenergize solar inverters carry both certifications and are manufactured in India. Contact Zenergize to confirm model availability and ALMM listing for your required system capacity.
Originally published at https://www.zenergize.in/pm-surya-ghar-muft-bijli-yojana-inverter-subsidy/
Written by
Navneet Daga
Co-Founder & CEO at Zenergize. IIT alumni. 16+ years of experience with Accenture, Delhivery, SuperPlum etc. Building India’s first indigenous SiC solar inverter.
View LinkedIn