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I have coded my IOT client device using AWS IOT Client SDK in Embedded C wherein the SDK is free. Later i came to know that AWS IOT Broker which is in AMAZON cloud is not a free service, there is limit for certain amount of messages per month. I am looking for a solution is it possible to get the AWS IOT Broker installer for free, so that i can host the AWS IOT Broker on my local server and use it? so i need not to pay for AWS IOT Cloud services. Does we have this option or we have to compulsory use the AMAZON AWS IOT Cloud services only(which is not free)?

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The AWS IOT cloud offering from Amazon is not available for installation on a local server.

As you are already using what I assume to be the AWS IoT Device SDK for embedded C you are already tied to AWS IOT.

If you only need pub/sub capabilities and MQTT there a number of free MQTT based offerings that you can install on a local server.

You'll loose out on AWS specific services such as Thing Shadow.