The PM Surya Ghar Muft Bijli Yojana is the largest residential solar subsidy programme India has ever run. Over a crore homes are expected to be enrolled by end of 2027. But the part that confuses most homeowners is what happens when you add a battery — does the subsidy still apply, do you still get net metering, and is the whole stack actually worth it?
This guide answers all of that in plain terms, with current 2026 numbers, and walks through the design choices for a typical Indian household.
What PM Surya Ghar covers in 2026
The scheme runs through the Ministry of New and Renewable Energy. It provides a central financial assistance (CFA) — essentially a subsidy — for grid-connected rooftop solar on residential buildings. Here are the 2026 slabs:
| System size | Central subsidy (₹) | Typical install cost (₹, all-in) | Net out-of-pocket |
|---|---|---|---|
| 1 kW | Up to 30,000 | 65,000–75,000 | 35,000–45,000 |
| 2 kW | Up to 60,000 | 1,20,000–1,40,000 | 60,000–80,000 |
| 3 kW | Up to 78,000 | 1,75,000–2,00,000 | 97,000–1,22,000 |
| Above 3 kW | 78,000 fixed cap | 3,00,000+ | 2,22,000+ |
Some state governments add a top-up subsidy. Gujarat, Maharashtra, Karnataka, and Rajasthan have offered additional incentives in recent years. Check your DISCOM portal for state-specific top-ups when you apply.
Where the battery fits
This is the part the official portal does not explain well. The PM Surya Ghar scheme funds the panels, the grid-tied inverter, mounting, wiring, and safety equipment. Batteries are optional components — you can include one, but the subsidy line items typically do not cover the battery itself.
This raises an obvious question: if I add a battery, do I lose the subsidy? The answer is no — adding a battery does not disqualify you. You still get the central subsidy on the panel + inverter portion of the system. The battery is simply an additional out-of-pocket cost (with its own value proposition).
1. Grid-tied only. Panels → inverter → grid. No backup. Excess solar flows to the grid via net metering. Cheapest. Stops producing during outages.
2. Grid-tied with battery (hybrid). Panels → hybrid inverter → battery + grid. Excess solar charges the battery first, then exports to the grid. Keeps producing during outages. The right answer for most Indian homes.
3. Off-grid. Panels → off-grid inverter → battery only. No grid connection. Rare for urban homes; common in remote / agricultural settings.
Why most Indian homes should pick architecture #2
India’s grid is unreliable. Even Tier-1 cities see multiple outages per month. With a grid-tied-only system (option 1), your panels are useless the moment the grid drops — for safety reasons, all grid-tied inverters shut off when the grid is down (this is called “anti-islanding”). On a sunny day with a power cut, your house goes dark while your rooftop is generating perfectly good electricity.
Add a battery and a hybrid inverter and the picture flips: outages become invisible to you. The battery handles the cut, and your solar keeps feeding your home and recharging the battery. This is the configuration Powerten Raksha + Swayam is built for.
Net metering, gross metering, and what changes with a battery
Net metering is the policy that lets you export surplus solar to the grid and receive credit against the units you import later. The mechanics:
- Your bidirectional meter records every kilowatt-hour pushed to the grid and every kilowatt-hour drawn from it.
- At the end of the billing cycle, you pay (or get credited) on the net difference.
- Most states cap residential net metering at 10 kW system size; some states (Karnataka, Tamil Nadu) allow higher caps for residential applications.
When you add a battery, your export pattern changes. Without a battery, you export the midday surplus when solar is high but household consumption is low. With a battery, you can store that surplus and either (a) self-consume it in the evening peak, or (b) export it later when feed-in rates are higher (in states that publish time-of-day tariffs).
The right strategy depends on your tariff structure. In most Indian states, the retail tariff (₹6–₹10/unit) is higher than the export tariff (₹2–₹3/unit), which means self-consumption beats export. A battery lets you maximise self-consumption.
Sizing: how big a system, how big a battery
The classic mismatch in Indian residential solar is over-sizing the panels relative to the battery. Here is a saner approach:
Step 1: figure out your daily consumption
Pull your last twelve months of electricity bills. Average the units consumed per month, divide by 30 to get daily kWh. A typical Indian 3 BHK runs 12–18 kWh per day; an apartment runs 6–10 kWh; a villa with multiple ACs can run 25–40 kWh.
Step 2: size the solar array
India sees roughly 4 peak sun hours per day on average. So a 3 kW solar system generates ~12 kWh per day. Match (or slightly over-size) to your daily consumption — over-sizing gives you export credits and headroom for future EV charging.
Step 3: size the battery
Your battery is sized for two things: (a) outage backup, and (b) evening self-consumption of stored solar. A 5 kWh LFP battery handles ~4 hours of typical evening load for a 3 BHK; a 10 kWh battery handles overnight + most of the next morning. Sweet spots for Indian homes:
- Apartment / 2 BHK: 3 kW solar + 5 kWh battery
- 3 BHK home: 5 kW solar + 5–10 kWh battery
- Villa with ACs: 6–10 kW solar + 10–16 kWh battery
What the full economics actually look like
Take a 3 BHK family in Bengaluru on a ₹8,000/month electricity bill. They install a 5 kW solar system (₹3,00,000 all-in) and a 10 kWh LFP battery (₹3,00,000 all-in). Total system: ₹6,00,000.
| Line item | Amount |
|---|---|
| Solar + inverter (5 kW) | ₹3,00,000 |
| LFP battery (10 kWh) | ₹3,00,000 |
| PM Surya Ghar subsidy (capped at 3 kW) | −₹78,000 |
| State top-up (varies) | −₹0 to ₹20,000 |
| Net out-of-pocket | ₹5,02,000–₹5,22,000 |
| Monthly bill before | ₹8,000 |
| Monthly bill after (with battery) | ₹500–₹1,500 |
| Monthly export earnings | +₹500–₹1,500 |
| Effective monthly savings | ₹7,000–₹9,000 |
| Simple payback | ~5–6 years |
After payback, you’re looking at ₹70,000–₹90,000 of free electricity every year for another decade. The 10-year warranty on a quality LFP battery means the financial case is genuinely solid.
How to apply for PM Surya Ghar (and add a battery cleanly)
- Register on pmsuryaghar.gov.in. You’ll need your DISCOM account number and a mobile number linked to your home.
- Select an empanelled vendor. Only vendors on your DISCOM’s approved list can claim the subsidy on your behalf. The portal lists empanelled vendors by city.
- Discuss your battery plan with the vendor upfront. Some vendors specialise only in grid-tied; others (including those who partner with battery brands like Powerten) handle the full hybrid system. Ask before you sign.
- Apply for the subsidy. The vendor handles the technical inspection, installation, net metering paperwork, and subsidy claim. You pay your share; the subsidy is credited directly to your bank account after commissioning.
- Install the battery alongside. The battery sits on the AC or DC side of the hybrid inverter, depending on architecture. The DISCOM does not need to approve the battery — only the grid-tied inverter and net metering connection.
Common mistakes to avoid
- Going grid-tied-only to maximise subsidy. You save ₹3,00,000 on the battery but your home still loses power during outages. False economy.
- Over-sizing solar, under-sizing battery. You generate plenty but cannot self-consume in the evening, so most of your solar exports at ₹2–3/unit and you re-import at ₹8–10/unit.
- Using a non-hybrid inverter. A grid-tied inverter cannot work with a battery for backup. You need a hybrid (also called solar-cum-storage or PCU) inverter from day one.
- Skipping the BMS conversation. Battery without a competent management system is the leading cause of premature failure. Confirm the BMS spec in writing.
- Choosing the cheapest vendor. Solar + battery is a 10–15 year decision. The cost of a service call to a vanished vendor easily wipes out the savings on day one.
The bottom line
PM Surya Ghar gives you up to ₹78,000 of central subsidy on rooftop solar — and that subsidy is preserved even if you add a battery. For most Indian homes, the right design is hybrid: solar + LFP battery + hybrid inverter. The numbers work, the outages disappear, and your home runs on sunshine.
If you’re at the planning stage and want to model your own savings — including export earnings and PM Surya Ghar credits — use the Powerten Swayam savings calculator, or book a free home consultation and we’ll size the system for your actual electricity bill and roof.