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Free electricity units vs rooftop solar (2026): is it worth it in your state?

A growing number of states give homes free units every month. That changes the solar question completely: a plant that would pay back in five years on a full bill can take fifteen on a bill that is already zero. Here is each state's free-unit rule, what happens above the limit, which states offer free solar instead, and where buying a plant still makes sense.

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Fast triage: If free units already make your bill zero most months, don't buy a plant; look for your state's free DISCOM-led solar route. If you regularly cross your state's limit and pay for those months, solar can be strong, especially where crossing the limit bills the whole month. Not eligible for free units? Ignore this page and size on your bill. Check your bill first.

First: PM Surya Ghar's "300 free units" is not a free-unit scheme

PM Surya Ghar: Muft Bijli Yojana is a capital subsidy for installing your own plant: ₹30,000 for 1 kW, ₹60,000 for 2 kW and ₹78,000 for 3 kW or more, paid after commissioning. The "up to 300 units free" line is shorthand for what a plant of about 3 kW generates in a month. Nobody credits 300 units to your account. The schemes below are different: the state government pays part or all of your bill. Detail: PM Surya Ghar guide.

State by state

StateFree-unit ruleAbove the limitSolar angle
TelanganaGruha Jyothi: zero bill up to 200 units a month for white-ration-card homes (Praja Palana)Whole month billedUtility-led solar approved for 20.33 lakh homes. Gruha Jyothi and solar
KarnatakaGruha Jyothi: free up to your entitlement, which is your 2022-23 average plus 10%, capped at 200 unitsPay for units above your entitlement; above 200 units, no benefit that monthHow solar homes are treated is not clearly published; confirm with your ESCOM. Karnataka hub · BESCOM
Andhra PradeshSC and ST homes: free power up to 200 units a monthNormal tariffFree 2 kW DISCOM-owned plant for SC/ST homes on up to 200 units; BC homes get ₹20,000 extra. AP SC/ST/BC scheme
Delhi100% subsidy up to 200 units a monthSubsidy reduces, then full tariffFree 3 kW for homes averaging up to 400 units; the 200-unit subsidy continues after solar. Delhi DISCOM guide
Punjab300 free units a month (600 per two-month cycle)Cross 600 in a cycle and the whole bill is payableSolar pays most for homes that keep crossing the line. PSPCL guide
RajasthanMukhyamantri Nishulk Bijli Yojana: 150 free units a monthNormal tariff on usageRegister K-number consent on Bijli Mitra first; the state links the free units to rooftop solar. JVVNL guide
BiharUp to 125 units a month free since 1 August 2025, with no fixed chargeSubsidised tariff continuesState top-up on PM Surya Ghar and waived fees. Bihar DISCOM guide
Tamil NaduFirst 100 units free for domestic consumersSlab tariff on the rest₹78,000 central + ₹22,000 state top-up. TNEB / TNPDCL guide
MaharashtraNo free units; SMART scheme targets homes under 100 unitsNot applicableState share on top of central for under-100-unit homes; 2,11,206 homes approved via utility-led aggregation. Maharashtra hub

Rules change with budgets and elections, and some schemes need registration that not every household has done. Read your own bill: it shows whether the benefit was applied and how many units were billed.

Three households, three answers

Why cliffs matter more than the free units

A free-unit scheme with a hard ceiling creates a cliff: one extra unit can turn a zero bill into a full one. That makes the summer months, when fans, coolers and air-conditioners run all day, disproportionately expensive. Solar generates most in those same months, which is why it can work for homes hovering just above the line. The catch is the open question on net metering: whether the limit is checked against net imported units or total consumption is not clearly published in most states. Don't borrow on a vendor's assurance; get the DISCOM's answer.

Free solar routes run by DISCOMs and states

Because states pay the bills of free-unit homes, several now prefer to put solar on those roofs themselves, usually under the utility-led aggregation model where the DISCOM side installs the plant:

None of these needs a private vendor's booking fee. If someone asks for money to "register" you for free government solar, check with your DISCOM section office first. Other states' top-ups are compared on our state top-up page.

What Sealix is

An independent advisory: not a DISCOM, state agency or installer. We don't sell panels. We read your bill, free units included, and tell you whether solar pays or whether you should wait: free bill check.

Common questions

Is rooftop solar worth it if my electricity is already free?

Usually not. Solar saves money by removing units you would otherwise pay for. If a state free-unit scheme already makes your bill zero or close to it, a plant has little to save and takes a very long time to repay. It becomes worth checking when you regularly cross your state's limit and pay for those months, or when you are not eligible for the free units.

Does PM Surya Ghar give 300 free units of electricity?

No units are credited to your account. PM Surya Ghar: Muft Bijli Yojana is a capital subsidy (₹30,000 for 1 kW, ₹60,000 for 2 kW, ₹78,000 for 3 kW or more) for installing a rooftop plant. The 'up to 300 units free' line describes what a plant of about 3 kW can generate in a month. State free-unit schemes such as Gruha Jyothi are separate and are paid for by the state government.

Which states give free rooftop solar to low-usage homes?

Several run DISCOM-led routes in 2026: Andhra Pradesh for SC and ST homes on up to 200 units, Delhi for homes averaging up to 400 units, Telangana's utility-led programme linked to Gruha Jyothi, and Maharashtra's SMART scheme for homes under 100 units. In each case the DISCOM or state agency arranges the plant. Do not pay a private vendor a booking amount for a free government plant.

Will I lose my free electricity units if I install solar?

It depends on the state, and the rules are often not published clearly. Delhi says its 100% subsidy up to 200 units continues after solar. For Telangana and Karnataka we have not found a published rule on how net-metered homes are treated. Ask your DISCOM section office in writing before you buy, and size the plant so it still pays if you lose the benefit.

Related: PM Surya Ghar · State top-up subsidies · Gruha Jyothi and solar · AP SC/ST free solar · Net metering India

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