India aims to become a net-zero emitter by 2070 and is emerging as one of the leading adopters of solar power in the APAC region. And to back that, the government has introduced numerous schemes and subsidies to bring down costs and make solar more accessible, particularly for homes, small businesses, and rural areas.
India is racing toward cleaner and greener power as part of its effort to achieve net-zero carbon emissions by 2070. The transition to solar power sets the tone for this journey. With the cost of energy on the rise, people are seeking a more affordable and reliable source of energy; solar electricity is a popular choice for both businesses and homes.
To facilitate this shift, the Indian Government has initiated various schemes and subsidies. These programs make solar systems more affordable and easier to install by reducing the upfront price tag and offering financial assistance. This is making it easier for more people to embrace solar energy, particularly in homes and rural areas.
In this article, we’ll share all you need to know about going solar in India. You will discover the best government schemes, the main advantages of having solar panel systems installed, who is eligible for schemes and subsidies, and how to claim them. If you are a homeowner, business owner, or farmer, this guide about government subsidies for solar panels in India will make your decision about solar energy that much easier.
What do you mean by the Government Scheme for Solar Panels in India?
The government is a scheme initiated by the Indian government to encourage people to switch from traditional energy sources to solar power. Such programs assist, such as with installation, loans, technical assistance, and economic incentives. The aim is to bring clean energy and reduce electricity bills.
For example, the PM Surya Ghar Yojana is a scheme to provide solar power to homes.
What is the Government Subsidy for Solar Panels in India?
A subsidy is when your government pays some of the cost for you. When you install solar panels on your roof, the government typically covers part of the cost, usually 30% to 60%, depending on your location and the size of your system. This will cut the cost and red tape involved in installing such systems for people who already have solar power.
For example, if a solar system has a ₹1 lakh price tag and your subsidy is 40 per cent, you only pay ₹40,000 because the government hands you ₹60,000.
Who Is Eligible for Solar Subsidies in India?
Subsidies for solar panels in India primarily focus on rooftop solar installations for homes and rural areas. Below is a breakdown of who might be able to apply for and benefit from the government’s existing programs –
Individual Homeowners
If you live in a house and wish to have a rooftop solar system installed, you may be eligible for a subsidy under the PM Surya Ghar Muft Bijli Yojana. You need to have the system installed on your roof and linked to the grid.
The application must be submitted through the government’s official sites for installation, so you have approved vendors from whom you can avail yourself of the service. The rebate is determined based on the system size (in kW) and is credited to your bank account after the installation and inspection are complete.
Residential Welfare Associations (RWAs)
Housing societies and RWAs can also take advantage of subsidies for installing solar systems in community areas, including lighting in staircases, corridors, lifts, and water pumps.
The level of subsidy varies by system size and usage. These are considered group homes and may have different regulations from single-family dwellings.
Farmers (Under PM-KUSUM Scheme)
Farmers have the option to participate in a separate scheme, PM-KUSUM, which offers subsidies for solar-powered water pumps and small solar power units.
This is particularly important in urban areas that don’t have access to electricity or in rural areas where power is expensive. The idea is to help farmers cut fuel costs while also becoming energy self-sufficient.
Top Central Government Solar Subsidy Schemes
Let us now look at the central government solar subsidy schemes –
1. PM Surya Ghar: Muft Bijli Yojana (2024–25)
Implementing Authority
Ministry of New and Renewable Energy (MNRE)
Target Beneficiaries
Households all over India, particularly those from lower-middle-class and middle-class backgrounds.
Subsidy Amount/Structure
₹78,000 on rooftop solar up to 3 kW.
Above 3 kW may receive additional benefit (as per policy terms).
Eligibility Criteria
Applicants must be Indian residents.
Roofspace needs to be available for the PV array.
The system is to be installed by a registered vendor under this scheme.
Residential homes only (no commercial properties).
How to Apply?
Users can register directly on the Surya Ghar National portal: https://pmsuryaghar.gov.in.
It consists of sub-selection, site inspection, installation, and a subsides claim after inspection.
Latest Data / Updates (2024–2025)
This is a ₹75,000 crore scheme launched in 2024, aimed at providing electricity to 1 crore families. It features a real-time calculator and a searchable list of vendors for easy application.
2. MNRE Rooftop Solar Programme (Phase-II)
Implementing Authority
Ministry of New and Renewable Energy (MNRE), along with State DISCOMs.
Target Beneficiaries
Residential category – individual houses, group housing societies, and residential welfare associations.
Subsidy Amount/Structure
₹ 18,000/kW for system up to 3 kW.
₹ 9000/kW, other than for capacity above 3 kW and up to 10 kW.
Group housing societies: ₹9,000/kW up to 500 kW (per society).
Who is eligible?
Only residential properties are eligible.
There shall be an installation of the system by a vendor empanelled for the concerned DISCOM.
The beneficiary should not have availed of any other central solar subsidy for the same building/premises.
How to Apply?
You can log into your State’s DISCOM solar portal or call up the local electricity board. Typical applications include vendor enrollment, site surveys, system installations, and claim validations.
Latest Data / Updates (2024–2025)
This phase is ongoing into 2025 to facilitate rooftop solar installations in residential households, with a focus on integrating them into net metering and reducing electricity costs for urban homes.
3. CPSU Scheme (Phase-II)
Implementing Authority
Solar Energy Corporation of India (SECI) of MNRE.
Target Beneficiaries
Government offices, establishments, and PSUs.
Subsidy Amount/Structure
No direct subsidy to consumers.
Here’s some handy information on it: Viability Gap Funding (VGF) is financial support provided by the government to make solar power generation projects financially viable, promoting the clean generation of energy.
Projects could use only DCR (Domestic Content Requirement) panels.
Who is eligible?
Should be a central/ state government organization, a PSU, or a government-owned institution.
The systems must follow DCR regulations.
The vendor must be empaneled by SECI or participate in the tender process.
How to Apply?
Qualified institutions are required to submit applications via SECI’s official website or through the tenders issued.
Latest Data / Updates (2024–2025)
This initiative is one of the primary drivers behind the government’s goal to achieve 10 GW of solar energy on institutional and public buildings by 2026.
4. PM-KUSUM Scheme (Components A, B, and C)
Implementing Authority
Ministry of New and Renewable Energy (MNRE), through State Nodal Agencies.
Target Beneficiaries
Farmers’ producer organizations (FPOs), Co-operative rural.
Component A
Off-Grid Ground-Mounted Solar Farms (up to 2 MW).
Farmers can rent their land to developers for solar plants and earn from rentals.
Component B
Standalone Solar Agriculture Pumps.
Subsidy of up to 60% – 30% from the central government and 30% from the state government.
Remaining 10 – 30% by institutional finance/ farmer contribution.
Size: To 7.5 HP Each Pump.
Component C
Solarization of grid-connected pumps.
Enables farmers to pump with solar and sell excess power to the grid.
The subsidy structure is identical to that of Component B.
Eligibility Criteria
Farmers must own a farm or land.
Grid availability (for Component C)
Installation by authorized dealers or the nodal agency.
How to Apply?
Farmers are eligible to apply through the designated agency (SNA) of their state or UT or through the KUSUM portal as and when registration is opened.
Latest Data / Updates (2024 -2025)
More pressure in 2025 for Components B & C in the direction of sustainable agriculture and decreased diesel use. Target: By 2026, 30.8 GW capacity, to 35 lakh farmers.
State-Level Solar Subsidies in India
The Indian national government provides significant support for solar adoption through national schemes, while several states also offer additional subsidies and benefits to promote the use of solar power. These incentives may come in the form of larger rebates, more net metering options, or financial assistance from the state for rooftop systems.
Here is a look at some of the key states that are providing extra incentives for going solar in 2025 –
Gujarat leads with its Surya Urja Rooftop Yojana, which provides an additional ₹40,000 subsidy for residential consumers, in addition to the central assistance.
Maharashtra offers solar incentives through the Maharashtra Energy Development Agency (MEDA) and grants net metering to both residential and commercial users.
Solar benefits in Delhi are provided by BSES Rajdhani and BYPL (BSES Yamuna) in the form of group net metering for apartments & housing societies, as well as solar rebates.
The states of Haryana and Punjab offer state DISCOM-level discounts, approvals, and priority net metering, with exceptions for farmers and domestic users.
Here are those added state-level bonuses and benefits broken down by state –
| State | Scheme Name | Additional Benefit | Where to Apply |
| Gujarat | Surya Urja Rooftop Yojana | ₹10,000 – ₹40,000 extra subsidy for 1–3 kW systems | geda.gujarat.gov.in |
| Maharashtra | MEDA Solar Scheme | State subsidy + Net metering facility for homes and businesses | meda.maharashtra.gov.in |
| Delhi | BSES Rajdhani / BYPL Solar Program | Incentives + Group Net Metering for housing societies | bsesdelhi.com |
| Haryana | DHBVN/UHBVN Solar Rebate Scheme | DISCOM subsidy + Priority Net Metering for rooftop solar | saralharyana.gov.in |
| Punjab | PSPCL Solar Initiative | Additional subsidy + simplified net metering for farmers and homes | pspcl. in |
How to Apply for Solar Subsidies in India?
Here is how to apply for solar subsidies in India under the government’s PM Surya Ghar: Muft Bijli Yojana or MNRE Rooftop Solar Programme Phase II:
Register on National Portal – Log in to https://solarrooftop.gov.in with your DISCOM, Consumer no., and Mobile no.
Rooftop Solar (RTS) Application – Post registration, fill out the rooftop solar application form and upload the relevant documents (ID proof, electricity bill, property tax, etc.).
Review of Application – The application will be reviewed and approved by your DISCOM, and in most cases, will take 15-30 days.
Installation – After approval, choose an MNRE-empanelled vendor for your solar system installation. Ensure the system complies with technical and safety requirements.
Inspection & Net Metering – The DISCOM will inspect your installation and the meter to calculate the electricity consumed and generated.
Subsidy Release – The subsidy is deposited into the bank account you provided after a satisfactory site visit.
Key Benefits of Switching to Solar Power for Your Home or Business
Switching to solar energy is one of the most intelligent and sustainable decisions you can make for your home or business. However, as the costs of energy increase and the world shifts away from cleaner solutions, there are several benefits to solar power that extend beyond just the long-term savings.
Lower Electricity Bills
Solar panels allow you to make your electricity using sunlight. This could mean a big difference in your monthly energy bills and help protect you from increasing electricity costs in the years ahead. Eventually, the savings can cover the cost and even exceed it.
Government Support
The Indian government offers subsidies and rebates for solar installations. These monetary incentives help minimize the initial expenditure for solar installations, making solar energy more affordable and an easy step for homeowners or businesses to take.
Environment-Friendly Energy
The sun is a very clean and renewable source of energy. It does not produce harmful emissions, thereby contributing to cleaner air and helping to combat climate change. Choosing solar means you are doing your part for a healthier planet.
Energy Independence and Reliability
Solar energy means less reliance on the electricity grid. That means fewer disruptions caused by power outages and more control over your energy usage. In areas where grid power is unreliable, solar power offers a reliable solution.
Increased Property Value
Solar can even add some value to your house or building. Buyers tend to like homes with affordable utility bills and the most recent energy-efficient updates.
Boosting Local Economy and Jobs
The expanding solar sector creates jobs in manufacturing, installation, and maintenance. You’re also voting with your wallet and supporting the green economy.
How will Avaada Electro Assist in Accessing Government Schemes & Subsidies for Solar Panels in India?
Avaada Electro is a major player in the Indian solar market, participating in several government incentives, primarily due to its manufacturing and solar projects. However, its participation in government programs is generally limited to:
Utilising Central and State Schemes for Manufacturing
Avaada Electro has received subsidies and relaxations from the government, primarily in connection with the Union Government’s Production-Linked Incentive (PLI) program, for domestic solar module manufacturing outfits.
Selling to Subsidised Projects
The company’s solar modules and products are suitable for government-sponsored solar applications, including utility-scale and agricultural operations, public works, and program projects.
Project-Level Participation
Avaada Electro is executing solar projects for the state and central governments that are supported by subsidies or have a policy focus. This includes Maharashtra’s Mukhyamantri Saur Krishi Vahini Yojana (MSKVY) for the solarisation of agri pumps.
Conclusion
India’s resolve to become pro-solar is undisputable, as evident from various government-supported schemes available, and it is no longer the exclusive domain of the well-heeled. As a homeowner, farmer, or public institution, you may be eligible for a subsidy or incentive to help you save on installation costs and reduce your long-term energy expenses.
Central schemes, including PM Surya Ghar and KUSUM, as well as state-level programs, provide substantial financial assistance and policy support. It is a good time to do it, given the rising cost of energy and increased focus on sustainability. Check your eligibility, select a trusted installer, and take a step toward a cleaner and more cost-effective future.
Frequently Asked Questions
What are the best government schemes for solar panels in India 2025?
The top three schemes are PM-Surya Ghar Muft Bijli Yojana, MNRE rooftop subsidy program, and PM-KUSUM for farmers. These programs are designed to encourage the adoption of solar systems by providing upfront grants and promoting solar power for homes as well as agricultural applications.
What is the maximum subsidy available for installing rooftop solar in India?
You can receive a subsidy of up to ₹78,000 for a 3 KW system in residential categories, for central schemes. It is a power subsidy that may vary from state to state and is generally the amount transferred to your bank account once the system is installed and connected.
Who can benefit from solar subsidies from government schemes?
Residential householders, cooperatives, farmers, and certain business consumers are eligible to apply. Eligibility is based on system size, installation by endorsed dealers, and adherence to scheme criteria.
How to avail the solar government subsidy for a personal home in India?
You can submit your application on the official MNRE portal (solarrooftop. gov.in) or your state DISCOM’s solar portal. An approved installer assists with documentation, installation, and subsidies.
What is the PM-Surya Ghar Muft Bijli Yojana?
Launched in 2024, this scheme provides 300 units of free electricity a month and heavily subsidised home rooftop solar systems. It is aimed at 1 crore households in India and also ensures energy freedom.
How are farmers subsidised for solar pumps and systems in India?
Yes, farmers will receive a subsidy ranging from 60% to 90% under the PM-KUSUM scheme for the installation of solar water pumps and off-grid solar power plants. This reduces diesel consumption and increases irrigation efficiency.
Are there any other solar subsidies available at the state level in India?
Yes, some states, including Gujarat, Maharashtra, Rajasthan, and Kerala, offer additional incentives beyond central subsidies. These may include higher payout rates, expedited approvals, and local, exclusive programs.
