The government wants you to go solar. Both the central government and Karnataka state have put real money and policy muscle behind residential rooftop solar — and if you navigate the schemes correctly, you can reduce your upfront system cost by ₹60,000–78,000, earn from exporting surplus power for 25 years at a locked-in tariff, and access low-interest green loans.
The problem: the scheme landscape is fragmented across multiple portals, the eligibility rules have changed multiple times since 2024, and some of the "information" circulating online is either outdated or incorrect.
This is Sunvana Energy's updated 2026 guide to every scheme relevant to Bangalore homeowners — what's real, what's changed, and what to actually apply for.
The central government scheme: PM Surya Ghar Muft Bijli Yojana
This is the primary scheme you should know about. Launched by the Government of India in 2024 and significantly scaled up in 2025–26, PM Surya Ghar (literally "Sun Home Free Electricity Scheme") provides direct financial assistance for residential rooftop solar across India.
Who is eligible?
- Residential homeowners with an existing BESCOM connection (LT-1 or LT-2 category)
- The electricity account must be in the applicant's name (or a family member's with consent)
- The connection must be in a residential property (commercial and industrial connections are not eligible for this scheme)
- Tenants can apply with a valid rental agreement and property owner's NOC
What subsidy does it provide?
The Central Financial Assistance (CFA) is structured as follows for 2026:
| System size installed | Subsidy amount |
|---|---|
| 1 kWp | ₹30,000 |
| 2 kWp | ₹60,000 |
| 3 kWp | ₹78,000 (maximum) |
| Above 3 kWp | ₹78,000 (capped — no additional subsidy for capacity above 3 kW) |
The subsidy is credited directly to your registered bank account — not to the installer. This is an important consumer protection introduced in 2025 to prevent overcharging by vendors.
The DCR requirement — critical for subsidy eligibility
To receive PM Surya Ghar subsidy, you must install DCR-compliant panels (Domestic Content Requirement). From June 2026, MNRE now requires that both the solar cells and the module assembly must be manufactured in India, and must appear on the ALMM (Approved List of Models and Manufacturers) List I and List II.
A panel that is assembled in India from imported cells is not DCR-compliant under the 2026 rules and will not qualify for the subsidy.
Always ask your installer to provide the panel's ALMM List II certification before finalising the order. Saving ₹10,000–15,000 by going with cheaper non-DCR panels will cost you ₹78,000 in lost subsidy — a net loss every time.
See our dedicated blog on DCR vs Non-DCR panels for more detail.
How to apply
- Register on pmsuryaghar.gov.in — enter your state (Karnataka), DISCOM (BESCOM), and consumer number
- Receive feasibility approval from BESCOM through the portal
- Select an MNRE-empanelled vendor from the portal's vendor list
- Install the system after receiving sanction
- Submit commissioning documents through the portal
- Subsidy is credited to your bank account — typically within 30–45 days of commissioning
You must also submit an application on the BESCOM SRTPV portal (srtpv.bescom.org) for the net metering connection. Both registrations are required.
BESCOM net metering — not a subsidy, but a long-term earning mechanism
Net metering is not a subsidy in the traditional sense — it is a grid arrangement that allows you to earn money from your solar system for the next 25 years. It deserves to be treated as a major financial benefit.
Under BESCOM's net metering arrangement, governed by KERC (Karnataka Electricity Regulatory Commission), every unit of surplus electricity your panels export to the grid earns you a credit at the applicable export tariff.
2026 BESCOM export tariffs (KERC Order dated 9 July 2025)
| System type | Export tariff |
|---|---|
| Domestic 1–10 kW (without PM Surya Ghar subsidy) | ₹3.86 per unit |
| Under PM Surya Ghar, 1–2 kW | ₹2.30 per unit |
| Under PM Surya Ghar, 2–3 kW | ₹2.48 per unit |
| Under PM Surya Ghar, above 3 kW | ₹2.93 per unit |
These rates are fixed for 25 years from your commissioning date. In a world where BESCOM tariffs have risen 3–5 times in the last decade, a locked-in export tariff for 25 years is a significant financial commitment from the government.
The subsidy vs tariff trade-off: Taking PM Surya Ghar subsidy lowers your export tariff. Skipping the subsidy gives you a higher export tariff (₹3.86/unit) but you pay full system cost upfront. For most homeowners installing 3–5 kWp systems, taking the subsidy is financially better — the upfront saving outweighs the lifetime difference in export earnings. Ask your installer to model both scenarios for your specific consumption and system size.
Karnataka Renewable Energy Policy 2022–27
The state government does not offer a separate cash subsidy for residential solar in addition to the central PM Surya Ghar scheme. However, the Karnataka Renewable Energy Policy 2022–27, notified on 30 April 2022, provides the policy framework that enables residential solar and includes several practical benefits:
Simplified approvals: The policy mandates streamlined single-window approval for grid-connected rooftop systems, reducing the bureaucratic friction that previously delayed installations by months.
Group Housing and RWAs: Apartments and residential welfare associations are eligible for net metering under Group Net Metering (GNM) and Virtual Net Metering (VNM) schemes. The central subsidy applies at ₹18,000 per kW for common facilities (EV charging, common area lighting) up to 500 kW total, or 3 kW per household.
KREDL oversight: The Karnataka Renewable Energy Development Ltd (KREDL) is the state nodal agency for rooftop solar. For residential applications through BESCOM, you deal with BESCOM's SRTPV portal directly. KREDL is primarily relevant for PM-KUSUM (agricultural solar) and larger commercial/institutional projects.
PM-KUSUM for Bangalore homeowners — not applicable
PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan) is specifically designed for agricultural solar pump sets. It is not applicable to urban residential homeowners.
If you are a farmer in Karnataka looking to electrify irrigation pumps through solar, PM-KUSUM Component B (individual pump solarisation) and Component C (feeder-level solarisation) are the relevant schemes — covered in our separate guide for agricultural solar.
Low-interest green loans for solar
One underutilised benefit: several nationalised and private banks offer concessional loans specifically for PM Surya Ghar installations.
Under PM Surya Ghar, the government has tied up with banks to offer:
- Collateral-free loans up to ₹2 lakh for systems up to 3 kWp
- Interest rates in the range of 7–10% per annum
- Loan tenure up to 5–7 years
- No prepayment penalty
For larger systems, green home loans and solar-specific EMI products are available through SBI, Canara Bank, Bank of Baroda, and several NBFCs. At ₹3 lakh system cost, a 5-year loan at 9% results in EMIs of approximately ₹6,200/month — often less than the electricity bill the system replaces.
Group Housing Society — special provisions
If you live in an apartment complex or a gated community, your Resident Welfare Association (RWA) or Housing Society can apply for solar under Group Net Metering. Key points:
- The solar system can be installed on the building terrace and the generated power distributed to individual flats
- Each flat benefits from reduced electricity charges
- The total capacity can be up to 500 kW (at 3 kW per household)
- Central subsidy of ₹18,000/kW applies for common facility capacity
- BESCOM is now required to finalise GNM/VNM agreements within 15 days of receiving the application (per 2025 KERC order)
This is a significant opportunity for Bangalore's large apartment-dwelling population that was previously excluded from rooftop solar benefits.
What Karnataka does NOT offer (common misconceptions)
No separate state cash subsidy for residential solar. Karnataka does not add to the central PM Surya Ghar subsidy with its own cash contribution for residential consumers. Sources citing "Karnataka state subsidy" for residential solar are typically referring to the central scheme administered through KREDL/BESCOM, not an additional state-specific payment.
No property tax exemption for solar installations (unlike some other states). Karnataka has not announced a property tax benefit for homes with solar panels.
No net metering "compensation" beyond the KERC tariff. Some states offer additional payments or higher export tariffs at the state level — Karnataka currently does not.
Your action checklist
If you're a Bangalore homeowner ready to go solar:
- Register on pmsuryaghar.gov.in — do this before contacting installers, as the portal registration establishes your subsidy eligibility
- Choose an MNRE-empanelled vendor — verify on the PM Surya Ghar portal, not just the vendor's word
- Confirm DCR panel compliance — ask for the ALMM List II certificate for the specific panel model
- Apply on BESCOM SRTPV portal (srtpv.bescom.org) — required in addition to PM Surya Ghar registration
- Open or confirm your bank account — subsidy is credited directly post-commissioning
- Explore green loan options — if upfront cost is a constraint, a 7–9% solar loan often makes EMI lower than your current bill
Sunvana Energy is MNRE-empanelled and handles the complete PM Surya Ghar application, BESCOM SRTPV registration, and subsidy claim on your behalf. Contact us for a free assessment and a complete picture of what schemes apply to your home.
MNRE Empanelled | BESCOM Approved Vendor | Residential, Commercial & Agricultural Solar
Subsidy amounts and export tariffs as per PM Surya Ghar scheme guidelines and KERC Order dated 9 July 2025. DCR requirements based on MNRE ALMM List-II circular (May 2026). Scheme details are subject to revision — always verify current terms at pmsuryaghar.gov.in and srtpv.bescom.org.