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 are Solar Panel Government Schemes in India
A government solar panel scheme is a program initiated by the central or state government to financially and technically support citizens, farmers, and institutions in installing solar energy systems. The various solar schemes in India cover everything from rooftop solar installations to agri-pump solarisation, with support coming in the form of direct subsidies, tax exemptions, soft loans, or generation-based incentives.
How does a Solar Subsidy Actually Work
A solar 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 through a rooftop solar subsidy, usually 30% to 60%, depending on your location and the size of your system. This significantly reduces the upfront investment and makes solar panels accessible to more households across India.
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.
Solar Panel Subsidy Amount in PM Surya Ghar
|
System Size |
Central Subsidy |
You Pay (Approx.) |
Free Units Per Month |
|
1 kW |
Rs 30,000 |
Rs 30,000 – Rs 40,000 |
Up to 100 units |
|
2 kW |
Rs 60,000 |
Rs 25,000 – Rs 35,000 |
Up to 200 units |
|
3 kW (max subsidy) |
Rs 78,000 |
Rs 20,000 – Rs 30,000 |
Up to 300 units |
|
Above 3 kW |
Rs 78,000 (capped) |
Balance by owner |
300+ units |
Note: Costs are indicative and vary by state, vendor, and panel type.
Who can Apply for Solar Panel Subsidies in India
The solar panel subsidy in India primarily targets rooftop solar installations for homes and rural areas. Whether you are searching for a solar subsidy in India or want to understand which government solar panel scheme applies to you, the table below breaks down eligible categories and applicable programs:
|
Who You Are |
Eligible Scheme |
Subsidy Coverage |
|
Residential homeowner |
PM Surya Ghar Muft Bijli Yojana |
Up to Rs 78,000 |
|
Housing society / RWA |
MNRE Rooftop Solar Phase-II |
Rs 9,000/kW up to 500 kW |
|
Farmer |
PM-KUSUM (B & C) |
Up to 60% of system cost |
|
Govt institution / PSU |
CPSU Scheme Phase-II |
Viability Gap Funding (VGF) |
|
Manufacturer |
PLI Scheme for Solar PV |
Production-linked incentive |
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 (2025–2026)
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 (2025–2026)
This phase is ongoing into 2026 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 (2025–2026)
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 (2025 -2026)
More pressure in 2026 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.
Read More – What Is Net Metering in Solar Energy?
5. Special Subsidies for Northeastern States, Hilly Regions and Union Territories
Residents in certain geographies receive an additional 10% subsidy on top of the central scheme rates. This applies to:
- Northeastern states (Assam, Meghalaya, Sikkim, Mizoram, Manipur, Nagaland, Tripura, Arunachal Pradesh)
- Hilly states (Himachal Pradesh, Uttarakhand)
- Union Territories (Jammu & Kashmir, Ladakh)
- Island territories (Andaman & Nicobar Islands, Lakshadweep)
Apply through your state nodal agency or the PM Surya Ghar national portal, which automatically calculates your applicable subsidy rate.
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 2026.
Gujarat leads with its Surya Urja Rooftop Yojana, providing a significant solar subsidy in Gujarat offers, with 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. Specifically, the solar subsidy in Punjab provides through its PSPCL Solar Initiative includes additional subsidies and simplified net metering for farmers and homes.
Here are those added state-level bonuses and benefits broken down by state.
|
State |
Scheme Name |
Additional Benefit |
Apply At |
|
Gujarat |
Surya Urja Rooftop Yojana |
Rs 10,000–Rs 40,000 extra for 1–3 kW systems |
geda.gujarat.gov.in |
|
Maharashtra |
MEDA Solar Scheme |
State subsidy + net metering for homes & businesses |
meda.maharashtra.gov.in |
|
Delhi |
BSES Rajdhani / BYPL Program |
Capital subsidy above MNRE + group net metering |
bsesdelhi.com |
|
Haryana |
DHBVN / UHBVN Scheme |
DISCOM subsidy + priority net metering |
saralharyana.gov.in |
|
Punjab |
PSPCL Solar Initiative |
Additional subsidy + simplified net metering |
pspcl.in |
|
Uttar Pradesh |
UP Rooftop Solar Yojana |
Additional Rs 15,000/kW subsidy up to Rs 30,000 |
upneda.org.in |
|
Rajasthan |
Rajasthan Solar Policy |
Net metering + state-level generation incentives |
energy.rajasthan.gov.in |
|
Tamil Nadu |
TANGEDCO Solar Scheme |
Feed-in tariff + net metering for residential |
tangedco.gov.in |
How to Apply for Solar Subsidies in India?
Claiming your solar panel subsidy in India is a straightforward process. Here is a step-by-step guide to applying for the solar subsidy in India under the 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.
What Does a Solar System Actually Cost After the Government Subsidy
Here is a realistic cost breakdown for residential rooftop solar systems in India after applying the solar panel subsidy under PM Surya Ghar:
|
System Size |
Approx. Market Cost |
Govt Subsidy (PM Surya Ghar) |
Your Net Cost |
Estimated Monthly Savings |
|
1 kW |
Rs 60,000 – Rs 75,000 |
Rs 30,000 |
Rs 30,000 – Rs 45,000 |
Rs 500 – Rs 800 |
|
2 kW |
Rs 1,10,000 – Rs 1,30,000 |
Rs 60,000 |
Rs 50,000 – Rs 70,000 |
Rs 900 – Rs 1,400 |
|
3 kW |
Rs 1,50,000 – Rs 1,80,000 |
Rs 78,000 |
Rs 72,000 – Rs 1,02,000 |
Rs 1,200 – Rs 2,000 |
|
5 kW |
Rs 2,40,000 – Rs 2,80,000 |
Rs 78,000 (capped) |
Rs 1,62,000 – Rs 2,02,000 |
Rs 2,000 – Rs 3,200 |
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.
Tax Benefits and Accelerated Depreciation for Businesses
If you are installing solar for a business or commercial property, you can claim 40% accelerated depreciation in the first year under the Income Tax Act significantly reducing your taxable income. This benefit is in addition to any capital subsidies available.
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:
How Avaada’s PLI-backed manufacturing keeps your panel costs lower
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.
Why choosing an MNRE-empanelled installer matters and how Avaada qualifies
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.
Avaada’s government-tied projects: what it means for quality and warranty assurance
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.
Read More – 5Kw Off Grid Solar System Price In India
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 solar schemes in India including PM Surya Ghar and PM-KUSUM along with state-level programs, provide substantial financial assistance and policy support. With the solar subsidy in India covering up to 60% of system costs in some cases, there has never been a better time to switch. Check your eligibility, select a trusted MNRE-empanelled installer, and take a step toward a cleaner, more cost-effective energy future.
Frequently Asked Questions
What is the maximum subsidy for rooftop solar in India
Existing (suggested answer): The maximum central government subsidy under PM Surya Ghar Muft Bijli Yojana is Rs 78,000 for a 3 kW rooftop solar system. For systems above 3 kW, the subsidy remains capped at Rs 78,000. Some states offer additional subsidies on top of this.
What are the best government schemes for solar panels in India
The top central government schemes are PM Surya Ghar Muft Bijli Yojana (for homeowners), PM-KUSUM (for farmers), MNRE Rooftop Solar Programme Phase-II (for residential and housing societies), and CPSU Scheme Phase-II (for government institutions and PSUs).
Can I get solar panels for free from the government
No scheme offers 100% free solar panels. However, PM Surya Ghar covers up to Rs 78,000 of your installation cost and entitles you to up to 300 units of free electricity per month after installation significantly offsetting your upfront investment.
How long does it take to get the subsidy credited
After successful installation and DISCOM inspection, the subsidy is typically credited to your registered bank account within 30 to 60 days.
Is the solar subsidy available for commercial properties
Central residential subsidies under PM Surya Ghar are available only for residential properties. Commercial establishments can benefit from the CPSU Scheme (if a PSU or government institution) or state-level commercial solar programs. However, businesses can claim 40% accelerated depreciation on their solar installation under the Income Tax Act.
How are farmers subsidised for solar pumps in India
Under PM-KUSUM Component B, farmers receive up to 60% subsidy on standalone solar pumps 30% from the central government and 30% from the state. The farmer’s share is typically 10%, with the remaining covered by institutional finance. Pumps up to 7.5 HP are eligible.
Are there extra subsidies in Northeastern states and hilly regions
Yes. Residents of Northeastern states, hilly states like Himachal Pradesh and Uttarakhand, and Union Territories such as Jammu & Kashmir, Ladakh, and Andaman & Nicobar Islands receive an additional 10% subsidy over and above the standard central rates.
Which installer should I choose for my solar subsidy in India?
Any MNRE-empanelled installer such as Waaree, Tata Power Solar, Avaada Electro, or a local DISCOM-approved vendor is equally eligible to process your subsidy claim. Compare based on warranty terms, after-sales service, and DCR-compliant panel sourcing rather than brand alone.
How do I verify if an installer is MNRE-empanelled?
Check the approved vendor list on the official PM Surya Ghar portal (pmsuryaghar.gov.in) or your state DISCOM’s website before signing any contract. Only empanelled vendors can process your subsidy claim.
