Solar Inverter Subsidy: PM Surya Ghar Rules

Most inverter buying under PM Surya Ghar starts from the wrong question. People ask which inverter carries the largest subsidy. The scheme never prices the inverter, so nothing in it answers that.

The MNRE operational guidelines are blunt about it. The central financial assistance, or CFA, is provided irrespective of the size of the inverter installed, and is computed on the rated DC capacity of the solar modules. That single line changes the whole inverter decision, and most competing pages miss it.

Once the subsidy is fixed by module capacity, the inverter stops being a subsidy question and becomes an engineering and warranty question. This guide covers what the scheme does and does not specify about inverters, which standards bind the hardware, how to pick a DC to AC ratio under a capped subsidy, whether a hybrid changes anything, what a registered vendor owes you for 5 years after commissioning, and what to read on the datasheet before you sign.

Short version. PM Surya Ghar pays central financial assistance on the rated DC capacity of your solar modules, not on your inverter. The MNRE operational guidelines say the assistance applies irrespective of inverter size. So no inverter choice raises your subsidy. Choose the inverter on string fit, efficiency at your model, service reach and written warranty terms, then treat the subsidy figure as fixed.

What the scheme specifies about inverters, and what it leaves out

The guidelines set out eligibility, the CFA calculation, vendor registration, the National Portal process and the maintenance obligation. They publish no inverter specification table. The inverter appears as a component of a compliant grid-connected rooftop system, subject to applicable standards and to your distribution company’s connection requirements.

That asymmetry is deliberate. Module capacity is the subsidy meter, so the scheme defines it tightly. The inverter is left to the standards regime and the DISCOM, both outside the subsidy document. So no vendor can point to a line in the MNRE guidelines that approves or rejects a specific inverter model.

For the full scheme walkthrough, see our PM Surya Ghar complete guide, and for how the ministry’s programmes fit together, the MNRE rooftop solar scheme overview.

The rule most pages get wrong: the CFA does not move with inverter size

Search results on this keyword are full of advice about picking a bigger inverter for more subsidy, or picking a brand because it is “subsidy approved”. Both are wrong under the current guidelines.

Published slabs, per the Press Information Bureau (2024):

Special category states and UTs use ₹33,000 and ₹19,800 in place of ₹30,000 and ₹18,000, per the same guidelines. Dividing the published outputs by the published formula gives an implied benchmark of ₹50,000 per kW for the first 2 kW and ₹45,000 for the third. That is arithmetic from the formula, not a figure MNRE quotes directly.

These are scheme amounts, not a net price and not a promise for any individual application. Acceptance conditions also vary by state and DISCOM. Check the figure on your own National Portal application before you commit.

Which technical specification the inverter must actually meet

The binding documents sit outside the subsidy guidelines, which require a compliant installation and point to the notified technical specifications rather than reprinting them. So you need two things in writing: standard test evidence for the model, and the DISCOM’s connection requirements.

The standard set that normally applies to an Indian rooftop installation includes IEC 62109 for the safety of power converters used in photovoltaic systems, plus IS 732:2019 for wiring practice and IS 3043:2018 for earthing, both from the Bureau of Indian Standards. Safety and supply conditions sit under the Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2023.

Your DISCOM then enforces grid interface behaviour. Anti-islanding evidence, ride-through settings and any zero export condition are utility-specific, not scheme-specific. Ask for the model test report and the DISCOM’s written acceptance, and expect the answer to differ by state. Our inverter compliance guide goes deeper on the standards.

The ALMM myth: there is no inverter list

This claim circulates widely and is false. Inverters do not need to be on “ALMM List-II” for PM Surya Ghar, because List II is not a list of inverters.

The MNRE ALMM page publishes List I for solar PV modules and List II for solar PV cells, with List II in force from 1 June 2026. MNRE publishes no Approved List of Models and Manufacturers for inverters at all. There is no list to be on, so a brand cannot be on it.

What follows from that:

• An “ALMM approved inverter” sticker proves nothing about compliance.
• The scheme’s domestic content conditions run through the module and cell lists, so they give you no test for the inverter.
• Rejecting a quote because a rival vendor says the inverter is “not ALMM listed” is rejecting it on a criterion that does not exist.

Use the model documents instead. The ALMM glossary entry explains what the lists do cover. MNRE publishes no ALMM list for inverters, so ask the seller for the exact model’s BIS registration and current certificates, and confirm the inverter requirements with your DISCOM.

Worked example: sizing the inverter when the subsidy is capped

Assistance stops growing above 3 kW of module capacity. So the sizing question becomes: given a fixed subsidy, which inverter serves the array best? Here is the arithmetic, with design assumptions labelled.

Choosing a DC to AC ratio when the money is fixed

Because the subsidy is fixed by module capacity, the DC to AC ratio is a pure engineering and cost decision. No ratio earns a larger CFA.

Mild DC oversizing is normal in India because real array output sits well below nameplate for most of the day. Push the ratio too far and you lose energy to clipping at the inverter’s AC ceiling. Our explainer on DC oversizing covers the tradeoff in detail.

On-grid or hybrid under the scheme

The CFA base is rated DC module capacity. So choosing a unit with battery capability does not by itself raise or lower the assistance, and a separately quoted battery is not part of that calculation.

What changes is the utility side. Whether your DISCOM grants net metering on a hybrid configuration, which meter arrangement it requires and whether it imposes a zero export condition all vary by state and DISCOM. Some utilities accept a battery behind the meter; others want the operating mode documented.

Sequence it properly: settle the backup requirement, confirm the metering treatment with the DISCOM in writing, then order hardware. Doing it the other way round is how projects stall. Compare the two architectures in our on-grid versus hybrid guide, and if you only need grid export, the on-grid inverter range is simpler.

What a registered vendor owes you, including the 5-year CMC

The MNRE operational guidelines put real obligations on the registered vendor, and buyers routinely fail to collect on them. The maintenance contract is the most valuable.

Under the guidelines, a registered vendor must provide a Comprehensive Maintenance Contract for 5 years from the date of commissioning. The guidelines also run a 15-day clock after DISCOM approval and a 30-day clock for grievances. A grievance call centre operates on 15555 in 12 languages.

MNRE reported process changes during 2026. As at 20 March 2026, 26.21 lakh rooftop systems totalling 9.56 GW were installed, benefiting 32.4 lakh households. The technical feasibility requirement was waived, auto load enhancement up to 10 kW was introduced, the net metering agreement was folded into the National Portal application and vendor registration was simplified. RESCO and Utility Led Aggregation models were added. Collateral-free loans were offered at repo rate plus 50 basis points, 5.75% per annum at that date, for up to 10 years. That rate floats with the repo, so confirm it with the lender.

Verify the vendor’s current registration for your area on the official consumer portal. Our empanelled vendor guide covers the checks, and the rejection reasons guide covers what goes wrong.

Warranty diligence: the CMC is not the manufacturer warranty

Readers conflate these two constantly, and vendors are not always keen to separate them. They are different documents with different counterparties, terms and failure modes.

Collect three things before payment: the signed CMC with commissioning date and scope written out, the manufacturer’s written warranty for the exact model including base term, remedy, registration deadline and exclusions, and the fault service route showing who raises the claim and who moves the unit.

Qbits publishes an expandable warranty, and its public datasheets do not define the base term, remedy, registration deadline or exclusions, so obtain the current written warranty for the exact quoted model.

Reading the inverter datasheet before you sign

Ask for the model datasheet as a PDF. A whole-brand claim is not evidence about the unit going on your wall. These fields decide whether the proposed design is even legal on paper.

Our guide on reading inverter datasheets covers the rest.

Common mistakes

• Buying a larger inverter to chase a larger subsidy. The CFA does not move with inverter size.
• Treating an “ALMM approved inverter” claim as compliance evidence. No such list exists.
• Accepting a net price and never seeing the gross, itemised quote.
• Assuming the CFA reduces GST. Section 15(2)(e) of the CGST Act excludes government subsidies from the value of supply, so tax sits on the gross contract value.
• Assuming the 5-year CMC and the manufacturer warranty are the same cover.
• Ordering a hybrid before confirming the DISCOM’s metering treatment in writing.
• Letting an installer add a module after design without rechecking the DC voltage ceiling.
• Believing any promise of approval or a specific slab. Neither is a vendor’s to give.

The Bottom Line

PM Surya Ghar pays on module DC capacity and says so plainly: the assistance applies irrespective of the size of the inverter installed. Once that is settled, the inverter decision is about string fit, model-level efficiency, service reach and written warranty terms. There is no inverter list to check, and no inverter choice raises your subsidy.

Three things to do next:

• Pull the gross itemised quote, confirm the module DC capacity your application claims on, then stop optimising the inverter for subsidy.
• Collect the signed 5-year CMC and the manufacturer’s written warranty for the exact model as two separate documents before releasing payment.
• Test your module and inverter pairing against real voltage and current limits in the string sizing calculator, then talk to our team about the model that fits the design.

Sources checked 24 September 2026: MNRE operational guidelines, residential CFA component; MNRE ALMM page; PM Surya Ghar National Portal; Press Information Bureau (2024) for the CFA slabs; MNRE scheme progress reported March 2026; IEC 62109, IS 732:2019 and IS 3043:2018 (Bureau of Indian Standards); Central Electricity Authority (Measures relating to Safety and Electric Supply) Regulations, 2023; Section 15(2)(e), CGST Act. DISCOM conditions and model documents still have to be checked per installation.