One of your neighbours installed solar panels six months ago and they are paying less than 500 rupees for their electricity bill. Yours is still above 6,000 rupees. What have they found that you have not found? They applied for solar subsidies in India, which reduced their installation cost by approximately 60 per cent.
India has a 500 GW target in renewable energy by 2030 and the government is ensuring solar is affordable to ordinary families through the PM Surya Ghar Muft Bijli Yojana, with the target of installing 1 crore rooftop systems in the country.
The shocking fact is that state wise solar subsidies in India vary significantly. You will find the solar subsidy to be quite different in Delhi than you will get in UP or Gujarat. Being made aware of these differences may help you save thousands of rupees.
At Usha Shriram Solar, we have assisted families throughout India in negotiating these subsidies. We understand what paperwork is important and how to gain the maximum. In this guide, we will tell you all about your solar subsidy.
What Are Solar Panel Subsidies?
A solar panel subsidy is a government payment that helps in lowering the initial cost of a rooftop solar set-up since the government wants more homes to use clean electricity.
Subsidies can be of two types:
Central subsidies are provided by MNRE (Ministry of New and Renewable Energy). This subsidy is provided to every residential customer in India.
State subsidies are additional subsidies which are imposed by certain states over the central subsidy. Only big extras in Delhi and UP; the central subsidy is provided in some states only.
The subsidy is deposited directly into your bank account upon completion of the installations and inspections. You do not need to wait several months or pursue reimbursements. Install via a certified vendor, abide by the regulations and get the money within 30 days.
Net metering allows you to sell any excess electricity to the grid. Solar is very appealing in the long run due to the subsidy and the savings on your bills.
How Much Solar Subsidy Can You Actually Get?
Central subsidies are the same for all:
Up to 2 kW systems: ₹30,000 per kW
- 1 kW = ₹30,000 subsidy
- 2 kW = ₹60,000 subsidy
3kW and larger: stipulated 78,000 rupees (no greater increase than 3kW)
Thus, regardless of whether you put in 3 kW, 5 kW or even 10 kW, the central subsidy will be limited to 78,000 rupees. That is approximately 40-60 per cent of the total cost.
Real case: A 3 KW system will cost approximately 1,80,000 rupees without subsidy. On the application of a subsidy go with gft amount of 78,000 rupees, you will only have to pay 1,02,000 rupees. The cost is further reduced by adding state subsidies.
The subsidy includes panels, the inverter and simple installation which is to the standards of MNRE. It does not consist of batteries or special extensions.
State Wise Solar Subsidies: Where Extra Money Comes From
This is where the savings may be considerably larger since some states contribute greatly.
Solar Subsidy in Delhi
Delhi adds ₹10,000 per kW (up to 3 kW) on top of central amounts.
Total for 3 kW in Delhi:
- Central: ₹78,000
- Delhi bonus: ₹30,000
- Your total: ₹1,08,000
The increment of 30,000 rupees qualifies Delhi as one of the best states in India in residential solar. It is also fast to process using local DISCOMs.
Solar Subsidy in UP
UP matches Delhi’s generosity through UPNEDA. They provide ₹15,000 per kW extra.
Total for 3 kW in UP:
- Central: ₹78,000
- UP bonus: ₹45,000 (varying, and usually limited to 30,000-45,000 rupees)
- Your total: Around ₹1,08,000-1,23,000
UP focuses more on rural solar adaptation. Here the Paper work is a bit more time consuming than in metros but the earned money justifies the wait.
Gujarat’s Solar Push
More than 3 lakh systems have already been installed in Gujarat and 2,362 crore rupees in subsidies have already been given out. The state contributes 20 -40 percent in different programs, but it varies depending on the scheme.
Gujarat is fast in its processing, and the vendors are good.
Maharashtra’s Group Focus
Maharashtra has served over 2.5 lakh installations and has paid 1,870 crore rupees. They particularly promote group installations and housing societies.
The advantage of apartments with minimal roof space is that the group can install a greater-looking system on the common space and receive a subsidy up to 500kW.
Other States Quick Look
Karnataka: 20 to 30 percent state addition through KREDL.
Tamil Nadu: Net metering policies are strong in returns.
Rajasthan: Rural attention through RRECL.
Haryana: Supplemental services to Antyodaya families and model villages.
Kerala: Coastal and hilly local assistance.
Northeastern states have time based campaigns that have additional advantages. See the state renewable energy websites on existing schemes.
Who Actually Qualifies for Solar Subsidies?
Not everyone can apply. Here’s who’s eligible for solar subsidies in India:
✓ The Indian nationals/citizens who possess a residential property.
✓ Valid electricity connection in their name.
✓ Sufficient roof (or terrace or balcony) space.
✓ First-time solar subsidy applicants.
✓ Housing communities to 500kW capacity.
Who cannot apply:
✗ Commercial businesses
✗ Industrial units
✗ Government buildings
✗ The recipients of an earlier subsidy on the same connection.
✗ Agricultural land solar
Documents required: Aadhaar, electricity bill, bank details, property papers, PAN card. Prepare them beforehand.
Getting Your Subsidy: The Actual Process
Here’s how state wise solar subsidies in India actually work in practice:
Step 1: Visit pmsuryaghar.gov.in. Register using your mobile and electricity consumer number. You must do this personally – vendors can’t register for you.
Step 2: Select vendors from the registered list of the portal. These are the only vendors who are eligible for the subsidy. Usha Shriram Solar has been listed in several states.
Step 3: Within 15 days, your DISCOM conducts a feasibility study to check the roof space, electrical facilities.
Step 4: The system is installed with the help of domestic panels, only of MNRE qualification.
Step 5: Apply to the net meter via the portal following the installation.
Step 6: DISCOM checks and approves the commissioning certificate if everything is correct.
Step 7: Submit bank details. The subsidy is passed to you within a period of 30 days.
For places like solar subsidy in Delhi or solar subsidy in UP, the additional state forms might be required. We do control those variations so that you may receive the full benefits.
Why Choose Usha Shriram Solar?
Usha Shriram Solar is a trusted solar solutions provider with over 7 years of experience, delivering high-quality solar panels, inverters, and end-to-end solar systems across India. Managing solar panel subsidies can be confusing, here’s how we make it simple for you:
– Compliant Components– Our panels and inverters are all DCR-compliant, so you will not fail to use them due to the wrong equipment.
– Transparent Costs – Our prices are transparent and are presented as quotes reflecting the one upfront cost, subsidy you will receive (central plus state price) and the amount you have actually invested.
– Domestic Knowledge – We know the Discom regulations of Delhi, the UPNEDA process of UP, and also the specifics of each other’s state.
– Track Records– We have subsidised thousands of families. We are also able to avoid delays and issues because of our experience and expertise.
Start Your Solar Journey Today
State wise solar subsidies in India have made solar accessible to regular families. Whether you’re in Delhi getting ₹1,08,000 total, UP receiving similar amounts, or any state getting at least ₹78,000 – the math now works beautifully.
A 3 kW system that cost ₹2 lakhs now costs under ₹1.2 lakhs after subsidies. Factor in 25-year lifespan and monthly savings of ₹3,000-5,000, and you’re looking at returns few investments match. These schemes keep evolving. Acting now locks in current generous benefits.
Ready to slash those electricity bills?
Contact Usha Shriram Solar today. We’ll assess your roof, explain applicable solar subsidies in India for your location, handle paperwork, and install a system delivering decades of clean electricity. Your rooftop should earn money, not just sit there baking in the sun.Let’s make your solar-powered future happen.
How much time it takes for subsidy money to get disbursed?
The central subsidies are handed over within 30 days of commissioning of the system. The state subsidies vary: Delhi takes 45-60 days, UP around 60-90 days.
Is it possible to enjoy a subsidy on systems that exceed 10 kW?
Yes, it is possible to install any size of system. The subsidy is capped at 78000 rupees ( on a 3 kW system). More powerful systems would be beneficial in case you consume a lot of power, but you are not going to receive a larger subsidy on them.
What about the case of an unregistered installer?
Your installation will not pass. Only the vendors that are registered in pmsuryaghar.gov.in can be considered. Check registration prior to contract signing.
Is a subsidy applicable on batteries?
No. The existing schemes only deal with grid-connected systems. You have to pay your money on batteries. This has been discussed in some states, but nothing done so far on the residential users.