Golden Ray Solar
Updated 09 Dec 2026 · 6 min read
Many of our clients started questioning this. The current scheme has a FY 2026–27 implementation period, but that is not the same thing as saying solar subsidies will never exist again. What happens after March 2027 will depend on the government's next policy decision.
Quick Summary
- • PM Surya Ghar is scheduled to close on 31 March 2027 — the official implementation deadline for the current scheme.
- • The current residential subsidy goes up to ₹78,000 (₹30,000 for 1 kW, ₹60,000 for 2 kW, up to ₹78,000 for 3 kW or more).
- • Don't choose a system size just to chase the maximum subsidy — base it on your consumption, roof space, shade and future needs.
- • PM Surya Ghar 2.0 is being explored as a possible next phase, with battery storage, shared rooftop solar and performance-linked incentives reportedly under discussion — nothing is officially notified yet.
- • Installation quality matters as much as panel quality — poor mounting, wiring, waterproofing or earthing can mean reduced generation and costly repairs later.
- • For Kerala homeowners, the current subsidy is a reason to plan early, not to rush — the system should make financial sense even beyond the subsidy period.
What Is Actually Happening With PM Surya Ghar in 2026?
The PM Surya Ghar: Muft Bijli Yojana was approved in February 2024 with a total outlay of ₹75,021 crore. Its main goal is to help install rooftop solar systems in one crore residential households by FY 2026–27. The scheme is very much active in 2026
In fact, the latest government figures show that by 22 July 2026, around 39.72 lakh rooftop solar systems had been installed, which benefited more than 48 lakh households. The government is continuing to push adoption, including easier financing and newer implementation models. So if you have recently heard that "the solar subsidy is already ending," that is not accurate.
The real question is what happens after the current scheme period. At the same time, the government is exploring what a possible PM Surya Ghar 2.0 could look like.
How Much Is the PM Surya Ghar Subsidy?
- If you're ready to install rooftop solar at home, the PM Surya Ghar subsidy can significantly reduce your upfront investment. For eligible residential installations, the Central Financial Assistance (CFA) is based on the capacity of your solar system. Solar System Capacity Central Subsidy 1 kW ₹30,000 2 kW ₹60,000 3 kW ₹78,000 Above 3 kW Maximum ₹78,000 The subsidy is capped at 3 kW for the residential CFA component. So installing a 5 kW or 6 kW system does not increase the central subsidy beyond ₹78,000. Solar System Capacity Central Subsidy 1 kW ₹30,000 2 kW ₹60,000 3 kW ₹78,000 Above 3 kW Maximum ₹78,000 The subsidy is capped at 3 kW for the residential CFA component. So installing a 5 kW or 6 kW system does not increase the central subsidy beyond ₹78,000.
Will the ₹78,000 Subsidy End Next Year?
Government schemes have defined
budgets, targets and implementation periods. When a scheme reaches its planned
period, the government can extend the existing scheme or even introduce a new
version. There are also cases where subsidy amounts and eligibility changed, or
were replaced with another programme.
Until such a decision is
officially announced, nobody can responsibly promise what the subsidy structure
will look like after March 2027.
So, if a solar company tells you
the ₹78,000 subsidy is guaranteed forever, be cautious. But if someone tells
you there will definitely be no solar subsidy after March 2027, that is also an
assumption. The only thing you can plan around today is the policy that is
currently available.
Should Kerala Homeowners Install Solar Before 2027?
What Is PM Surya Ghar 2.0?
Why Solar Installation Quality Matters as Much as the Panel
A good solar panel is a long-term investment. But the panel alone does not determine how well your solar system performs over the years. The installation matters just as much. Many homeowners spend considerable time comparing panel brands, efficiency ratings and warranties, but pay far less attention to who is installing the system and how the installation is being carried out. This is where trying to save a little money can sometimes become an expensive decision later. A cheaper installation may involve compromises in areas such as: • Mounting structure quality • Panel alignment and spacing • Cable management • Waterproofing • Earthing and electrical protection • Inverter installation • Roof penetrations and sealing • Safety standards • Overall workmanship These may not be obvious when the system is newly installed. The problems can appear months or years later through water leakage, loose structures, damaged cables, reduced generation, electrical faults or repeated maintenance requirements. Also, if future incentives become more performance-oriented, choosing an installer based only on the lowest quotation could become an even bigger mistake. A solar system has to perform over years, not simply pass the installation stage.
Planning Solar Before 2027? Choose the Right Solar Solution for Your Home
With the current PM Surya Ghar scheme scheduled to end on 31 March 2027, many homeowners are understandably looking at the subsidy as a reason to install solar now. A rooftop solar system is expected to work for many years, so while the current subsidy can reduce your initial cost, the quality of the system and installation will determine how well that investment serves you in the long run. The upfront cost can also be a concern. You don't always have to pay the full amount at once. After considering the applicable subsidy, you can look at solar loan options to manage the remaining cost through monthly payments, depending on the lender and your eligibility. This is where choosing the right solar company becomes important. As a solar company in Kerala, Flarize can help you through this process. Our team can guide you through all the stages including understanding your electricity usage, calculating the subsidy, exploring loan options, etc. We plan every system around the roof, power requirements and long-term use, with trained installation teams and quality components.
Check Subsidy Eligibility
Find out which government subsidies you qualify for.
Installing during the current PM Surya Ghar scheme locks in today's subsidy rules, but installation quality is what determines how well your system performs over its 25-year lifespan.
If a solar company tells you the ₹78,000 subsidy is guaranteed forever, be cautious — and if someone tells you there will definitely be no subsidy after March 2027, that's also just an assumption. Until the government officially announces the next scheme, only the current policy is something you can plan around.
