Rooftop Solar for Your Home: Is It Worth Spending to Cut Your Power Bill?

Copyright © HT Digital Streams Limited All rights reserved. Maulik M 6 min read 21 Oct 2025, 09:02 IST The central government is providing a subsidy on the installation cost of grid-connected systems under its Prime Minister Surya Ghar Muft Bijli Yojana (PM Surya Ghar Yojana). (Mint) Summary Rooftop solar systems offer a sustainable solution to high summer electricity bills, aided by government subsidies. While independent homeowners have seen savings, apartment dwellers face challenges. The scheme benefits high consumption users. Every summer, the burning heat makes air conditioners an indispensable part of our daily life. What follows next are hefty electricity bills. You can install a rooftop solar system (RTS) at your home for some relief. The central government provides a subsidy on the installation cost of grid-connected systems under its Prime Minister Surya Ghar Muft Bijli Yojana (PM Surya Ghar Yojana). Those with high power consumption can recoup the installation costs within a few years. Apart from that, it can give you the satisfaction of contributing to a cleaner environment. Essentially, what you need is sufficient roof space (a 1 kWp system requires 10 square meters) and the ability and willingness to bear the upfront installation costs. If you live in an apartment, this may not always be the case. Upendra Singh, former board member of the Bengaluru Apartment Federation, highlights some challenges. “It is very difficult to get all residents to agree to rooftop solar projects due to lack of awareness and the fact that additional funds need to be raised for this. While owners are more cooperative in terms of big-ticket investments, those who have rented out their apartments are less interested,” explains Singh. He also highlights structural issues. “Weak structures or lack of terrace area can also cause a problem. Generally, taller buildings (10-15 floors) have less roof area compared to the number of housing units. This makes the investment unviable,” adds Singh. Mint spoke to a few people who have RTS power systems at their homes (independent houses with their own roof space). Making hay while the sun shines Dhani Ram Gahlot, a retired bank manager, said he spent ₹1.2 lakh (after subsidy) installing a 3.5 kWp (kilowatt peak, an indication of maximum power capacity) RTS system at his home in Kurukshetra in Haryana in 2021. in the summer months, it was around ₹35,000. solar, it came down to ₹16,000,” he says. Gahlot’s family runs four ACs almost day and night. One of these provides cooling for his son’s crypto mining. Devansh Jain, a management student, spoke to us about the RTS system his father Sumit Jain installed at their Indore home in January 2024. The family spent ₹2 lakh on a 3 kWp system spent. They later received a subsidy of ₹78,000, bringing the final cost down to ₹1.2 lakh. For Vishal Bedse, a Nashik-based investment advisor, the decision to go solar in May 2024 was driven more by social rather than purely financial motives. He wanted to contribute his part for a cleaner environment. The family’s 3 kWp solar system generated more power than they did pulled out of the state grid, resulting in zero or minimal power bills and accumulation of electricity credits. To make the most of his investment in rooftop solar, Bedse says his family gradually made a few shifts—from using a gas stove to an induction stove, and from using a gasoline scooter to an electric one. Their next step is to an electric car buy. Big savings in power bills Thanks to their RTS installations, Gahlot and Jain’s families have managed to save a lot on electricity costs (see graph for more details). Note that these systems provide solar power to the state grid (tracked by an output meter). For their own use, they draw power from the state grid (tracked by an input meter). So, if there is a power outage, their solar power will not act as a backup. “This is mainly done for economic or environmental concerns, and is not a reliability tool unless it is coupled with battery storage,” says Ashwin Gambhir, fellow at Prayas (Energy Group), a non-profit organization focused on energy sector research. In Jains’ case, the RTS system floats however, some of their heavy electronic devices are directly powered (backed by battery storage) and the rest of their needs are supplied by the state’s power grid (backed by an inverter with battery to support a few fans and lights). In all three cases, the household pays for their net consumption (power drawn from the state grid minus the solar power supplied to the grid). If a household produces more power than it consumes, electricity credits are generated, which are adjusted against future consumption. Finally, if there are any accumulated credits left at the end of the year, the consumer is paid for them at a rate determined by the state. How to get the subsidy To encourage more and more people to adopt solar power, the central government has offered subsidy on the installation cost under the Prime Minister Surya Ghar Yojana. The scheme was launched in February 2024 and subsumed other existing subsidy schemes under it. You can get a maximum subsidy of ₹78,000 under the scheme (see graphic). You can apply for a rooftop solar system on the PM Surya Ghar website (https://pmsuryaghar.gov.in). It involves signing up, checking for the feasibility of you roof, choosing a vendor and so on until you finally place a subsidy request. Rather, most people we spoke to approached a seller immediately based on recommendations from friends and family. The seller took care of the online registration. In Gahlot’s case, the seller invoiced him after deducting the subsidy amount. Bedse and Jain, on the other hand, paid the full cost to their vendors. They have the subsidy of the state power distribution company (discom) later received in their bank accounts. Note that the subsidy only applies to RTS systems on the grid, i.e. those connected to the state grid. You can also only use the subsidy once. Gahlot is considering increasing its existing RTS capacity. But as he points out, he will not be eligible for a subsidy this time. To Whom Does It Make Sense Finally the decision to opt for an RTS system is largely a function of your power consumption. Those with significant power consumption are likely to fall into the higher power tariff slabs of their government discom. For such consumers, solar power can be a cost-effective option. They can recoup the installation costs within a few years. An RTS system generates on average about 120 units of power per month for each kWp of installed capacity. It did a lifespan of at least 25 years, although exposure to sun and other environmental factors affect generation efficiency over time. According to Gambhir, an RTS system may not make sense for someone who consumes less than 100 units per month. “At that consumption level, you may be able to buy cheaper electricity from your discom, depending on the tariff structure,” he says. Get all the Business News, Market News, Breaking News Events and Latest News updates on Live Mint. Download the Mint News app to get daily market updates. more topics #renewable power #Green Energy Read next story