PM Surya Ghar: residential vs C&I vs industrial

The single most common question on PM Surya Ghar commercial industrial eligibility has a simple answer: the subsidy is for homes, not businesses. If you sell solar to factories and offices, you sell a different story — and you need to know which lever fits which customer.

Is C&I eligible for PM Surya Ghar?

No — commercial and industrial (C&I) rooftops are not eligible for the PM Surya Ghar subsidy. PM Surya Ghar is a residential rooftop scheme, built to put solar on the roofs of domestic households. The benefit and the money are designed around the homeowner, not a business.

This matters because EPC owners often hear "solar subsidy" and assume it covers every customer. It does not. A shop, an office or a plant cannot claim the ₹78,000 residential subsidy. Those buyers use other financial levers, which we map out below.

Who PM Surya Ghar is actually for

PM Surya Ghar is for residential electricity consumers — households with a domestic connection who install rooftop solar. The scheme gives a direct capital subsidy to bring down the cost for ordinary families.

The residential subsidy in one line

A home gets ₹30,000 per kW for the first 2 kW, plus ₹18,000 for the 3rd kW, which caps the subsidy at ₹78,000 from 3 kW upward. A 5 kW or 10 kW home system still receives the same ₹78,000 cap. The subsidy is paid on the MNRE benchmark cost, not on your quote.

The money goes to the homeowner

The subsidy reaches the customer by Direct Benefit Transfer (DBT) after the system is commissioned and the net meter is installed. The EPC does not receive this subsidy. You install, the homeowner claims, and the DBT lands in the homeowner's bank account.

Segment comparison matrix

This is the fastest way to see the boundary. Each segment below shows whether the PM Surya Ghar subsidy applies, what incentive exists, the financial lever in play, who gets the benefit, and the angle for your EPC. Incentive figures outside the residential cap are illustrative — verify the current rule.

Matrix: SuryaHub, based on MNRE PM Surya Ghar guidelines and general C&I tax practice. Residential and RWA figures are scheme facts; depreciation and ITC are illustrative — verify current tax rules with your accountant.

Residential and RWA: the eligible segments

Two segments qualify under PM Surya Ghar — the individual residential household, and an RWA or group housing society for its common facilities. Both are treated as domestic for the scheme.

The individual home

A single home with a domestic connection is the core PM Surya Ghar customer. The household applies on the National Portal, picks a registered vendor, installs the system, and receives the ₹78,000-capped subsidy by DBT. Systems up to 10 kW have deemed feasibility under the Electricity (Rights of Consumers) Rules 2020.

RWA and group housing societies

An RWA or group housing society can claim ₹18,000 per kW for common facilities, up to 500 kW. This covers shared load like lifts, pumps, lighting and clubhouse power. The benefit goes to the society. Our RWA and group housing guide covers the resolution, metering and claim steps in full.

Why C&I rooftops are not eligible

C&I rooftops are excluded because PM Surya Ghar is funded as a household welfare scheme. The subsidy is meant to help domestic families afford rooftop solar, not to fund a profit-making business. So the eligibility line is drawn at the type of electricity connection and the customer.

A commercial connection — a shop, an office, a showroom — sits outside the domestic category. An industrial connection — a factory, a processing plant — sits outside it too. Neither can claim the ₹78,000 residential subsidy, no matter the system size.

The connection type is the test

The practical test is the tariff category on the electricity bill. If the meter is a domestic connection, the subsidy route is open. If the meter is a commercial or industrial connection, PM Surya Ghar does not apply, and you move the conversation to other levers.

What C&I uses instead of the subsidy

C&I solar runs on tax and tariff economics, not a capital subsidy. A commercial or industrial buyer makes rooftop solar pay back through depreciation, input tax credit, and large savings on high business tariffs. These figures are illustrative — verify the current tax rules.

Accelerated depreciation

A business can write down the cost of the solar asset quickly for income tax, which lowers taxable profit in the early years. This accelerated depreciation is often the single biggest financial lever for a profitable C&I buyer. The exact rate and rules change, so confirm the current figure with the customer's accountant.

GST input tax credit

A registered business may claim GST input tax credit (ITC) on eligible solar purchases, which reduces the net cost of the system. The treatment depends on how the plant is used and on current GST rules. Our GST for EPCs guide explains rates, ITC and invoicing; for any deal, verify the current position with CBIC and a tax advisor.

Open access, captive and group net metering

Larger C&I buyers also use open access, captive power and group net metering to cut energy cost. These let a business consume its own solar across sites or wheel power through the grid. The rules sit with the state regulator and DISCOM, so check the current state policy before you promise savings.

Industrial rooftop: the biggest systems, no subsidy

Industrial rooftops are the largest systems an EPC builds, and they get no PM Surya Ghar subsidy. A factory cannot claim the residential benefit, but its scale and high power bills make solar attractive on pure economics.

Why factories still buy solar

An industrial unit pays high tariffs and demand charges, so every solar unit it self-consumes saves real money. Combine that with accelerated depreciation and ITC, and the payback can be strong even without a subsidy. You sell on levelised cost, demand-charge cuts and tax benefit — not on a grant.

Net metering still applies

Industrial and commercial systems still connect through net metering or net billing under the relevant state rules, even though no subsidy is involved. The metering and DISCOM approval steps matter as much here as on a residential job.

What this means for your EPC

Knowing the segment boundary helps you pitch the right thing to the right buyer and avoid promising a subsidy that does not exist. Mis-selling a "subsidy" to a commercial client is a fast way to lose trust and a deal.

Pitch the lever that fits

• Residential: lead with the ₹78,000 subsidy and the DBT process.
• RWA / society: lead with the ₹18,000/kW common-area benefit and shared savings.
• Commercial: lead with payback, depreciation and ITC, not a subsidy.
• Industrial: lead with levelised cost, demand-charge savings and tax benefit.

Each segment needs a different quote, a different document set and a different finance story. The risk is using a residential template on a factory deal, or forgetting depreciation on a commercial proposal. Verify every tax figure before it goes in a quote.

How SuryaHub helps you sell across segments

SuryaHub lets one EPC run residential PM Surya Ghar jobs and C&I jobs side by side, with the right workflow for each. You quote a home with the CRM and proposal flow and the subsidy built in, then quote a factory with the depreciation and GST and finance story instead — and run the DISCOM and net-metering steps for both. SuryaHub is pre-revenue; real pilots are Suryantra Energy and RGESPL, and the figures here are scheme facts, not guarantees.

Related guides

Frequently asked questions

Sources & references

Eligibility boundaries come from MNRE and the National Portal; C&I tax levers depend on current GST and income-tax rules. Always confirm the latest figures with your DISCOM, state nodal agency, CBIC and a tax advisor.

• Ministry of New & Renewable Energy (MNRE) ↗

  Scheme guidelines defining PM Surya Ghar as a residential rooftop programme.

• National Portal for PM Surya Ghar ↗

  The consumer and vendor process for domestic rooftop subsidy.

• CBIC (GST) ↗

  GST input tax credit and rate rules that affect C&I solar economics.