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The Government of India is implementing the Pradhan Mantri Surya Ghar Muft Bijli Yojana (Prime Minister’s Solar Home Free Electricity Scheme) to promote the use of solar energy across the country. Under this scheme, the government aims to install rooftop solar panels in one crore (10 million) homes by the financial year 2026–27.
According to official data available till December 2025, more than 19 lakh (1.9 million) rooftop solar systems have already been installed nationwide. Out of these, nearly 7.7 lakh households are now receiving zero electricity bills.
To accelerate the adoption of solar energy, the government is offering benefits such as subsidies, easy loans, and net metering facilities. However, many people still lack accurate information about the installation process, costs, benefits, and subsidies related to solar panels.
In this article, we explain:
Expert: Alok Pandey, Solar Project Engineer, Gujarat
What Is a Solar Panel?
A solar panel is a device that converts sunlight into electricity. It is made up of special solar cells that produce electricity when exposed to sunlight. This electricity can be used to run household appliances such as fans, lights, televisions, and refrigerators.
Solar energy is environmentally friendly, helps reduce electricity bills, and makes homes self-reliant in the long term.
How Does a Solar Panel Work?
When sunlight falls on a solar panel, the photovoltaic (PV) cells inside it become active. These cells convert sunlight energy (photons) directly into electrical energy (electrons). This process is known as the photovoltaic effect, which generates Direct Current (DC) electricity.
A solar inverter then converts DC electricity into Alternating Current (AC), which is used in homes. Any excess electricity generated can either be sent to the electricity grid or stored in batteries.
How Much Electricity Can Be Saved Using Solar Panels?
Electricity savings depend on factors such as system capacity, sunlight availability, and household consumption.
This can reduce a household’s electricity bill by 60 to 100 percent, depending on usage.
How Much Does It Cost to Install Solar Panels?
The cost depends on:
Government subsidies significantly reduce the overall cost, making solar systems more affordable for households.
How to Apply for Rooftop Solar Panels?
To apply, register online on the National Solar Portal (pmsuryaghar.gov.in). You will need basic details such as your electricity consumer number, mobile number, and Aadhaar.
After registration, choose a vendor approved by your local DISCOM and the Ministry of New and Renewable Energy (MNRE). The vendor will conduct a site inspection and install the system after approval.
Documents Required for Solar Panel Installation
Applicants must submit essential documents such as identity proof, electricity bill, bank account details, and roof ownership proof, as specified on the portal.
How Much Roof Space Is Required?
On average:
For best performance, the rooftop should be open, sunny, and preferably south-facing.
Can Solar Panels Be Installed on Any Roof?
Yes. Solar panels can be installed on flat concrete roofs, sloped roofs, or sturdy tin sheds. However, the roof must receive uninterrupted sunlight throughout the day and should not be shaded by trees, tanks, or nearby buildings.
How Much Subsidy Does the Government Provide and How Is It Received?
The central government provides a maximum subsidy of up to ₹78,000 for rooftop solar systems up to 3 kW.
After installation, users must submit a subsidy request on the National Rooftop Solar Portal. The subsidy amount is credited directly to the beneficiary’s bank account within one month.
In How Many Years Does a Solar System Recover Its Cost?
This depends on electricity usage and subsidy amount.
For example, a 3 kW system costs approximately ₹75,000 after subsidy. With monthly savings of ₹2,000–₹2,500, the investment is recovered within 2.5 to 3 years. After that, electricity is almost free for the next 15–20 years.
Does Solar Power Reduce During Rainy or Winter Seasons?
Electricity generation does decrease during cloudy, rainy, or winter conditions, but it does not stop. Even in cloudy weather, solar panels can produce 60–80 percent of their normal output. Systems are designed based on average annual generation.
How Long Do Solar Panels Last?
According to Solar Project Engineer Alok Pandey, solar panels typically last 25–30 years. Their efficiency gradually declines over time, but they continue generating electricity.
Most panels come with a 25-year performance warranty, while inverters generally last 8–12 years. With regular maintenance, the system remains functional for decades.
How Often Is Maintenance Required and What Is the Cost?
Solar panels should be cleaned every 3–6 months. A technical inspection of wiring, inverter, and earthing should be done once a year.
Annual maintenance for a household solar system costs approximately ₹1,000–₹3,000. Many vendors offer free maintenance for the first 1–2 years.
How to Choose the Right Solar System Capacity?
A 1 kW system generates about 120–150 units per month. If a household consumes around 300 units per month, a 3 kW system is ideal.
Roof space, sunlight availability, and future electricity needs should also be considered.
Can Excess Solar Electricity Be Sold?
Yes, this facility is available with on-grid solar systems through net metering.
Excess electricity generated is sent to the grid, and the DISCOM provides credit for the units. These credits are adjusted in the electricity bill. This requires DISCOM approval and installation of a bi-directional (net) meter.
Difference Between On-Grid, Off-Grid, and Hybrid Solar Systems
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