PM Surya Ghar for Indian solar EPCs: the complete installer playbook

PM Surya Ghar is the biggest rooftop solar push India has ever run. For a solar EPC, that means steady demand — but only if you know the scheme's rules cold. This guide walks through the whole thing from the installer's side: how the subsidy works, how to get empanelled, the module rules, net metering, and how to actually get paid on time.

What PM Surya Ghar means for an EPC

PM Surya Ghar Muft Bijli Yojana is a central government scheme that subsidises rooftop solar on homes. The headline is simple: free or near-free electricity for a crore households. For you, the installer, it is a pipeline of subsidised residential jobs — and a set of rules that decide whether each one is profitable and clean.

The scheme runs on the National Portal and is delivered through your state's electricity distribution company (DISCOM). A homeowner applies, picks a registered vendor, and you build the system. The subsidy then reaches the homeowner after the job is done and the meter is set.

Who the scheme is for

The subsidy is for residential rooftop systems — individual homes and, at a lower rate, group housing societies and resident welfare associations. Commercial and industrial rooftops are not covered by this subsidy. So your PM Surya Ghar pipeline is home-owner work, even though your customer in the contract is the homeowner.

What changes for the installer versus the homeowner

Most online guides explain the scheme to homeowners. The installer's reality is different. You carry three things the homeowner never sees: the empanelment and bank guarantee, the module-compliance rules, and the cash-flow gap between when you finish a job and when the customer's subsidy lands. Get those three right and PM Surya Ghar is a strong, repeatable business line.

The subsidy: slabs and the ₹78,000 cap

The central subsidy is paid per kilowatt, on a sliding scale, and then it stops. Knowing the exact slabs lets you quote and explain the real out-of-pocket cost to a customer in one sitting.

The per-kW slab structure

The central financial assistance is ₹30,000 per kW for the first 2 kW, then ₹18,000 for the third kW. That adds up to ₹78,000 at 3 kW, and the subsidy is capped at ₹78,000. A 1 kW system gets ₹30,000; 2 kW gets ₹60,000; 3 kW and anything larger gets ₹78,000.

Why bigger systems do not get more subsidy

A 5 kW or 10 kW home system still receives only ₹78,000. The extra kilowatts are paid fully by the customer. This matters when you upsell a larger system: be clear that the subsidy does not grow past 3 kW, so the customer plans for the rest.

Special-category states and state top-ups

Some special-category states add their own assistance on top of the central amount, taking the total higher for the same system. State top-ups change often and vary by state, so never hard- code them into a quote template. Confirm the current state add-on with the state nodal agency before you promise a number.

How the MNRE benchmark caps your effective subsidy

The subsidy is worked out on the government's benchmark cost, not on your market price. If you quote above the benchmark, the customer still gets only the benchmark-based subsidy. That gap is the single most common cause of an unhappy PM Surya Ghar customer — they expected more subsidy than the scheme actually pays. Explain it before you sign, not after.

How the money flows — and why it is your risk

The order of payments under PM Surya Ghar is the opposite of what many new installers assume. Getting this right protects your cash flow.

The subsidy goes to the customer, not to you

After the system is commissioned and the net meter is installed, the subsidy is transferred directly to the customer's bank account by DBT — often a few weeks later. You do not receive the subsidy. You collect your full contracted price from the customer.

Setting payment terms and expectations

Because your money comes from the customer and theirs comes later from the government, your terms must stand on their own. Collect according to your milestones, and put the subsidy timing in writing so the customer is not waiting on it to pay you. A clear one-page summary at signing prevents most disputes.

Becoming a registered PM Surya Ghar vendor

You cannot do subsidised PM Surya Ghar jobs until you are an empanelled vendor with the relevant DISCOM. Empanelment is where most of the scheme's installer-only rules live.

The Performance Bank Guarantee (PBG) tiers

To register, you submit a Performance Bank Guarantee — a bank guarantee the DISCOM can claim if you do poor work or fail to deliver. The amount depends on how wide you want to operate, and it is valid for five years.

Which PBG tier do you need?

Start with the smallest scope that fits your plan; you can add states later. The PBG can be forfeited if a DISCOM blacklists you — in 2026, UPNEDA forfeited a ₹2.5 lakh guarantee from a vendor for poor workmanship. Treat the PBG as a quality bond, not a paperwork fee.

Why empanelment is per-DISCOM

Empanelment is not portable. Being registered in one state does not let you work in the next. Each DISCOM runs its own vendor list and process, so a multi-state EPC registers separately in every state it serves and carries a PBG for each.

Trained manpower and documents

Registration also asks for the basics of a real business — company and tax documents, an electrical contractor licence, and trained technicians (Suryamitra or SCGJ-certified). Keep this paperwork ready and current; missing or expired documents are a common reason a registration stalls.

Modules: ALMM, List-II and DCR

The subsidy is tied to what you install. Use the wrong module and the claim does not go through — so module compliance is a procurement decision you make before you quote.

What ALMM and DCR mean

ALMM is the Approved List of Models and Manufacturers. List-I covers approved modules; List-II covers approved solar cells. DCR means Domestic Content Requirement — the module must use Indian-made cells. For a PM Surya Ghar subsidy, your modules must be on ALMM List-I and be DCR-compliant.

The 1 June 2026 List-II cell rule

From 1 June 2026, the cells inside your modules must come from manufacturers on ALMM List-II. This tightens the domestic-content rule further and affects every subsidised job from that date.

How to plan procurement around the cell crunch

Domestic cell supply is tight relative to module capacity, so List-II-compliant modules can be scarce or pricier near the deadline. Confirm List-I and List-II status with your supplier in writing, keep the proof with the project file, and order ahead for jobs that will commission after the cut-off.

Net metering and DISCOM approval

A PM Surya Ghar system is grid-connected, so it needs net metering. The homeowner gets credit for the surplus they export, and the bidirectional meter records both directions. You apply to the DISCOM for feasibility, install once approved, and then the DISCOM inspects and fits the net meter.

Timelines and rules vary by state, because net metering is set by each State Electricity Regulatory Commission and run by each DISCOM. The subsidy claim is completed only after the net meter is in place, so net metering sits on the critical path of every job. Track it like a milestone, not an afterthought.

Getting paid: subsidy timing and cash flow

The subsidy reaches the customer after commissioning and meter installation, and in some states that takes longer than expected. Reports of multi-week or multi-month delays are common. None of this delays your payment if your terms are with the customer — which is exactly why your contract should not depend on the subsidy arriving.

Track each job's stage — installed, metered, claim filed, subsidy received — so you always know where a customer's money is. When a customer asks "where is my subsidy?", a clear status keeps the relationship calm and protects your reviews and ratings.

Staying empanelled: blacklisting, ratings and trust

DISCOMs have started suspending and blacklisting vendors for poor work, missed installs, or complaints, and they can forfeit the PBG when they do. On a scheme this visible, trust is now a survival issue, not a nice-to-have.

Protect your empanelment the boring way: install to standard, capture photo proof at each stage, close net metering on time, and answer customer issues quickly. A clean record keeps you on the list and keeps the referrals coming, which are the cheapest leads in this business.

PM Surya Ghar for RWAs and group housing societies

Beyond individual homes, the scheme supports common-area solar for resident welfare associations and group housing societies at ₹18,000 per kW, up to 500 kW. These are larger, higher-value jobs than single rooftops, with one decision-making body instead of many homeowners.

The compliance is the same — ALMM, DCR, net metering — but the sales cycle is a committee, so proposals, clear pricing, and a credible track record matter more. For an EPC that can manage a society project end to end, this is one of the strongest segments in the scheme.

The complete PM Surya Ghar hub

This pillar is the overview. The full scheme is broken into 20 focused guides below — each written for the installer, grouped into five clusters. Start with empanelment, the subsidy, and ALMM/DCR.

How SuryaHub runs PM Surya Ghar end to end

SuryaHub is the operating system for solar EPCs. It turns the scheme's steps into one tracked pipeline so nothing that gates the subsidy gets missed. A lead enters the solar CRM, becomes a quote, then a technical survey, then a sales order raised against ALMM/DCR-aware stock, then an installation with photo proof, then net metering and subsidy-claim tracking — all on one project record.

PM Surya Ghar, DISCOM and net-metering steps live in the government-workflow module, and every install becomes a 25-year AMC customer. SuryaHub is pre-revenue; real pilots are Suryantra Energy and RGESPL, and any performance figures are early estimates, not guarantees.

Related on SuryaHub

Frequently asked questions

Sources & references

The scheme facts on this page — subsidy slabs, the ₹78,000 cap, PBG tiers and the ALMM List-II date — come from primary government sources. Always confirm the current figures with your DISCOM or the National Portal before quoting a customer.

• National Portal for PM Surya Ghar ↗

  Scheme rules, subsidy amounts and the vendor/consumer process.

• Ministry of New & Renewable Energy (MNRE) ↗

  Scheme guidelines, ALMM orders and DCR rules.

• Press Information Bureau (PIB) ↗

  Official scheme announcements and targets.