The single biggest question we get before any site visit is some version of "how much subsidy will I actually get?" The honest answer depends on your system size and connection type — here's exactly how the math works.
What the subsidy is
The central government's PM Surya Ghar Muft Bijli Yojana, administered through MNRE (Ministry of New and Renewable Energy), offers a direct capital subsidy for residential rooftop solar. It's paid straight to your bank account after commissioning — it isn't a loan, a tax rebate, or something you have to claim back later.
Who's eligible
- You must have a residential TANGEDCO electricity connection in your own name (or a documented family member's, per current scheme rules)
- The subsidy applies to new rooftop solar installations — grid-tied, on-grid systems
- Commercial, industrial, and office connections are not eligible for this particular subsidy, regardless of system size
- The installation must be carried out and commissioned through the National Portal process (your EPC contractor handles this registration)
How much you actually get
The subsidy scales with system size up to 3 kW, and is capped beyond that point — installing more than 3 kW doesn't get you more subsidy, just a larger unsubsidized portion.
| System size | Subsidy |
|---|---|
| Up to 2 kW | ₹30,000 per kW |
| 2 kW – 3 kW (the 3rd kW only) | ₹18,000 |
| 3 kW system total | ₹78,000 (maximum) |
| Above 3 kW | Capped at ₹78,000 — no additional subsidy on the extra capacity |
In practice, this means a 1 kW system gets ₹30,000, a 2 kW system gets ₹60,000, and a 3 kW system (or larger) gets the full ₹78,000. Most Chennai homes with a monthly bill between ₹2,000–₹5,000 land in the 2–3 kW range, which is why ₹78,000 comes up so often in conversation.
How the money is disbursed
- Your EPC contractor registers your installation on the National Portal for Rooftop Solar and applies for net metering with TANGEDCO in parallel.
- Once TANGEDCO commissions the net meter and the installation passes inspection, commissioning is confirmed on the portal.
- The subsidy amount is credited directly to your bank account — not to the contractor — usually within a few weeks of commissioning confirmation.
You'll need your bank account linked and Aadhaar-verified on the portal for the transfer to go through without delay — this is normally set up as part of your application, but it's worth confirming with your contractor before installation begins.
Does the subsidy affect payback period?
Significantly. On a typical 3 kW system costing roughly ₹1,95,000–₹2,25,000 before subsidy, the ₹78,000 subsidy cuts your out-of-pocket cost by a third or more — which is usually the difference between a 5-year and a 4-year payback for an average Chennai household. Run your own numbers with real figures in our savings calculator — it applies this exact subsidy structure automatically for residential connections.
Not sure which slab you fall into?
Tell us your monthly bill and connection type — we'll estimate your system size and subsidy in seconds.