Are you planning to install solar panels at your home in India? Good news! The Indian government offers several solar subsidies and rooftop solar incentives to make clean energy affordable. These incentives help reduce your solar system installation cost, lower your electricity bill, and support the nation’s shift towards renewable energy.
In this article, we explain the national and state-level solar incentives for homeowners, how to apply for them, and what benefits they offer—using simple English and Indian context.
Why Go Solar in India?
India gets plenty of sunshine throughout the year. This makes it perfect for residential solar power systems. Solar energy is not only clean and green but also saves money in the long run.
With support from central government schemes like the PM Surya Ghar Muft Bijli Yojana and state-specific rooftop solar subsidies, solar power is now within reach for every Indian homeowner.
Central Government Solar Incentives for Homes
PM Surya Ghar Muft Bijli Yojana (2024)
This flagship scheme was launched by the central government to promote rooftop solar for households. The goal is to install rooftop solar panels on 1 crore homes across India.
Key Benefits:
- Up to ₹78,000 subsidy for rooftop solar systems up to 3 kW
- Free electricity up to 300 units per month
- Financial assistance is transferred directly to the homeowner’s bank account
- Simple online application via the national rooftop solar portal
Eligibility:
- You must own the house
- You must have a valid electricity connection
- Rooftop space should be shadow-free
- Installation should be done using MNRE-approved vendors and solar panels
Once installed, you will benefit from net metering, which lets you sell extra power back to the grid, reducing your monthly electricity bill.
Also Read Power After Sunset: How Do Solar Batteries Work in India?
Grid-Connected Rooftop Solar Scheme (MNRE Phase II)
This program by the Ministry of New and Renewable Energy (MNRE) offers:
- 40% subsidy for solar systems up to 3 kW
- 20% subsidy for systems between 3–10 kW
The subsidy applies only if you install the system through approved agencies and follow the net metering process. This is especially helpful for homeowners with higher power needs.
State-Wise Solar Incentives for Homeowners in India
Several Indian states give additional subsidies, making it even more affordable for homeowners. Let’s look at some major examples:
Delhi
- Offers ₹10,000 per kW extra subsidy, up to ₹30,000
- This adds to the central subsidy, giving a total of up to ₹1.08 lakh in savings
- Delhi residents with rooftops can significantly reduce their power costs
Gujarat
- A leader in rooftop solar adoption
- Offers installation support and streamlined approvals
- Has the highest number of rooftop solar connections in India
Maharashtra
- Supports residential rooftop solar installations through DISCOM-level assistance
- Focused on reducing peak load by encouraging solar adoption
Andhra Pradesh
- Special incentives for SC/ST families
- Free solar systems up to 2 kW for eligible households
- BC category homes get systems with up to ₹80,000 subsidy
Haryana
- Offers interest-free loans up to ₹10 lakh for solar installations
- 100% waiver on electricity duty and property tax for solar-equipped homes
Tripura
- Plans to install rooftop solar for 80,000 low-income homes
- Priority for homes using less than 100 units of electricity per month
Karnataka and Tamil Nadu
- Supports group housing societies and apartments for shared solar systems
- Offers net metering and solar installation support
Kerala and Punjab
- Running community solar and peer-to-peer trading pilots
- Encouraging large-scale residential solar adoption
How to Apply for Solar Subsidy in India
- Visit the national rooftop solar portal
- Register with your electricity connection details
- Upload required documents (Aadhaar, property proof)
- Select your vendor from the list of MNRE-approved companies
- Install the system and apply for net metering
- After DISCOM verification, the subsidy is credited directly to your bank account
Combine Subsidy with Solar Loans
Even after the subsidy, some people may need help with upfront payment. Banks in India offer solar loans at low-interest rates. Some even offer zero processing fees or government-supported credit lines.
This means you can start saving from Day 1 and pay for your system in easy EMIs while enjoying free solar electricity.
FAQ: Solar Subsidy for Indian Homeowners
Q1. Can I apply for the subsidy if I live in a rented home?
No, only property owners with rooftops can apply.
Q2. How long will the central subsidy last?
The PM Surya Ghar scheme is expected to run until March 2026 or until 1 crore installations are completed.
Q3. Can I install the system myself and still get the subsidy?
No, you must use an MNRE-approved vendor to qualify.
Q4. What is the total cost of a 3 kW system after subsidy?
It varies by state and vendor, but on average, a 3 kW system may cost ₹1.5 lakh–₹1.8 lakh before subsidy. After subsidy, you may pay as low as ₹1 lakh.
Q5. Do I need to install batteries for subsidy?
No, battery storage is not required. The system should be grid-connected with net metering.
Real Examples of Solar Adoption in India
- Gujarat has installed over 3.3 lakh rooftop solar systems under PM Surya Ghar
- Delhi now offers one of the highest state-level subsidies
- Andhra Pradesh and Tripura are using solar to electrify low-income homes
These show how rooftop solar is not just an environmental solution but also a way to achieve energy independence and lower power bills.
Final Thoughts
With the right combination of central and state solar incentives, Indian homeowners can save up to ₹1.2 lakh on solar installation. Add to that the monthly savings on electricity bills, and you could recover your total investment in just 4–6 years.
Now is the best time to take advantage of solar panel subsidies in India, install rooftop solar, and enjoy free power for the next 25 years.
