Everybody knows the benefits of solar panels, but one factor always worries customers: the cost. For most middle-class households, solar installation is a significant investment, and that’s why the Solar Panel Subsidy in India plays a vital role.
In this blog, we will talk about the 3 solar subsidy programs by the central government and a few state-government offers as well. Read till the end to know about the programs, eligibility, and benefits. If you have any queries, you can always contact us. Our team will be happy to help you!
The Role of Government Subsidy for Solar Panels
Typically, the cost of solar installation ranges from Rs. 1.5 Lakhs to Rs. 5 Lakhs or more. The financial strain is one of the major barriers to achieving the national solar adoption goals. Therefore, introducing a solution to make solar affordable became essential.
That’s where the government subsidy for solar panels changes the game. These subsidies reduce 30% to 40% of the solar installation cost. To produce 500 GW of non-fossil energy in India by 2030, that’s why rooftop solar subsidy in houses is critical.
In order to reduce the load on the utility grid and promote independent solar panel installation, the solar panel subsidy for 2026 becomes important.
4 Types of Solar Panel Subsidy in India
Let’s explore the 3 government subsidies for solar panels and a few state-based subsidy programs.
PM Surya Ghar Muft Bijli Yojana
The PM Surya Ghar Muft Bijli Yojana was launched by Prime Minister Narendra Modi in 2024 with the intention of installing rooftop solar panels in more than 1 crore households. This solar subsidy is designed to support low to medium-income households who need financial assistance to switch to solar.
Under the central government-backed Solar Panel Subsidy in India, you can get financial support of Rs. 30,000 to Rs. 78,000. The solar panel capacity must range between 1 and 3 kW. Group Housing Society (GHS)/ Resident Welfare Association (RWA) can also claim a rooftop solar subsidy of Rs. 18,000 per kW. In both cases
PM Surya Ghar Muft Bijli Subsidy based on capacity
- 1-2 kW : Rs. 30,000 to Rs. 60,000
- 2-3 kW: Rs. 60,000 to Rs. 78,000
- Above 3 kW: Rs. 78,000
You can decide the solar panel capacity based on your energy consumption.
You need to get feasibility approval from DISCOM. Once your solar installation is inspected and approved by the DISCOM, your subsidy amount will be credited to your registered account.
Benefits of choosing PM Surya Ghar Muft Bijli Subsidy:
- Households can enjoy free electricity with lower cost
- Reduce the electricity cost for the government and the utility
- Increase the use of renewable energy
- Reduce the carbon emissions on the individual household level
Eligibility criteria for PM Surya Ghar Muft Bijli Subsidy:
- The person availing the subsidy should be an Indian Citizen
- The household must have a shade-free rooftop with sufficient space for installation
- The household must have a valid electricity connection
- The household or owner must not have availed of any other solar subsidy
PM KUSUM
PM KUSUM stands for Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan. It is an MNRE solar subsidy for the farmers and agriculture-focused institutes. The aim is to provide access to free electricity, reduce the financial burden, and generate income for the farmers.
There are 3 components of the PM KUSUM Yojana as mentioned here.
- Component A: Decentralized Solar Power Plants
The government will provide up to 60% subsidy and 30% lower interest loan to help the farmers, FPOs, cooperatives, Panchayats, and local institutions install solar power plants. The power generated from his plant can be used by them. Excessive electricity can be sold to the authorized DISCOM to generate income.
- Component B: Standalone Off-grid Solar Pumps
Individual farmers in remote or low-grid areas can improve their irrigation by using solar pumps. The central Solar Panel Subsidy in India can cover almost 60% of the cost, while the farmers can avail low-cost loans to pay 30% of the remaining amount.
- Component C: Solarization of Grid-connected Pumps & Feeders
Individual farmers can claim a subsidy on solarization of existing grid-connected Pumps & Feeders.
The farmers can get up to 60% subsidy from the central and state governments. For grid pumps, they can avail a loan from a bank, and for feeders, they can avail a loan from NABARD or PFC/REC.
In North Eastern States, Ladakh, Jammu & Kashmir, Himachal Pradesh and Uttarakhand, Lakshadweep, and Andaman and Nicobar Islands, you can get up to 50% government subsidy for solar panels for off-grid pumps, grid-connected pumps, and feeders.
Grid Connected Rooftop Solar Programme (MNRE)
The MNRE solar subsidy for Grid Connected Rooftop Solar is 40% for systems up to 3 kW capacity and 20% for capacity between 3 kW and 10 kW.
The goal of the Grid Connected Rooftop Solar Programme (MNRE) is to increase the number of rooftop solar panels in India and reduce the use of fuel-based electricity. Grid connected solars get credit points from net metering to reduce their electricity bills.
Phase II of the Grid Connected Rooftop Solar Programme (MNRE) will end on 31st March 2026. So, if you want to avail a solar subsidy, apply now. Contact for any assistance or queries regarding solar panels.
State-based subsidies
In addition to the central government, many state governments also provide solar subsidies. A few popular state-wise solar panel subsidy programmes are:
- ₹10,000 per kW up to 3 kW in Delhi
- ₹15,000 per kW (max ₹30,000) in Uttar Pradesh
- ₹10,000-₹20,000 for capacity below 3kW in Maharashtra
- Up to 40% for smaller systems in Gujarat
Check the official solar-focused website for your state to know more. You can also connect with trusted solar panel manufacturers in India to know how much subsidy you can get.
Want To Know More About Solar Panel Subsidy?
Sunora Solar is a reliable solar panel manufacturer that knows a lot about all the solar panel subsidies in India. Therefore, whether you are looking for solar panels or financial assistance for solar installation, we are here to help you. We can help you find the best assistance and more. Talk to us now!
Conclusion
The Solar Panel Subsidy in India makes the adoption of renewable energy affordable for households. Therefore, the central government provides 3 major solar subsidies to encourage solar panel installation in houses and farms. For homes, PM Surya Ghar Muft Bijli Yojana and Grid Connected Rooftop Solar Programme provide financial assistance for rooftop solar installation. The PM KUSUM program is designed especially for farmers and other agricultural institutes to get a subsidy on solar pumps and feeders. If you want to know more about these MNRE solar subsidies, contact Sunora Solar now!
FAQ
Who is eligible for the PM Modi solar scheme?
While some criterias vary based on the type of subsidy, the most common eligible criterias are as follows:
- Applicant should be an Indian resident
- The applicant mustn’t have availed of other subsidies
- They should have a valid grid connection
- They must have a shade-free space for solar installation
- Group Housing Society (GHS)/ Resident Welfare Association (RWA) can apply for a subsidy on the capacity of up to 500kW
Can I install solar in a rented house?
The short answer is yes; you can install solar panels in rented houses. However, you’ll need to get an explicit, written permission from the homeowner and DISCOM. You’ll have to negotiate the deal with your landlord. You can always encourage the landlords to install solar by educating them about its benefits.
How long does it take to receive a solar subsidy?
It takes around 2 – 4 months for the applicant to receive the subsidy amount after the successful installation and inspection. The amount will be credited directly into your registered bank account.
Can commercial and industrial consumers avail the rooftop solar subsidy?
No, the commercial or industrial customers can not avail any financial assistance for solar installation. However, they get financial incentives for solar installation, such as 40% accelerated depreciation in the first year. Contact Sunora Solar to know more.
