In the past few years, India has witnessed an increasing focus on the development of solar energy in India and its adoption in residential and commercial sectors. This is due to a multitude of reasons like limited conventional energy reserves, its local environmental and social impact, energy access, and tackling the challenge of climate change.
These reasons coupled with solar panel government subsidy have fuelled the demand for solar rooftop installation in residential sectors, recently. Solar PV technology is an attractive option that comes with 25-30 years of life and promotes the idea of zero fuel costs and reduced carbon footprint.
In this blog let’s look into various solar panel government subsidy in India and solar panel subsidy schemes that are relevant to the residential sector.
What is a solar panel government subsidy?
A solar panel government subsidy is an incentive by the government that gives a financial boost for solar panel installation in the household sector. These solar panel subsidy schemes can take the form of tax incentives, rebates, or grants, to make solar power accessible and cost-efficient for businesses and households alike. This will benefit them to reduce some a mount from their initial investment which can be a motivator to take steps to install solar solutions to meet the energy needs.
Solar panel subsidy in India for on-grid solar for domestic consumers
The Government of India, through the Ministry of New & Renewable Energy (MNRE PM Surya Ghar), provides solar panel subsidy schemes as Central Financial Assistance (CFA). These subsidies are given as a percentage of the benchmark price set for each on-grid project capacity. Notably, CFA subsidies are currently available only to domestic consumers.
It’s important to highlight that the solar panel government subsidy is limited to the lower value between the MNRE PM Surya Ghar’s determined benchmark price and the tender-discovered price (specific to each state). Here are the benchmark prices and central financial assistance/subsidies for on-grid project capacities per kWp:
| Project Capacity | Solar Panel Government Subsidy |
|---|---|
| 2 kWp | Rs.60,000 |
| 3 kWp | Rs.78,000 |
| >10 kWp | Totally Rs.78,000 |
For capacities above 3kW Solar Panel Systems on-grid projects, the solar panel government subsidy is available for domestic consumers, but limited to the first 3 kWp only.
Savings from solar per 2 months
| Ongrid Solar Capacity | Bimonthly Savings in MNRE PM Surya Ghar Bills* |
|---|---|
| 2 kWp | Rs. 2000-3000 |
| 3 kWp | Rs. 4500-5500 |
| 5 kWp | Rs. 9000-11000 |
| 10 kWp | Rs. 18,000 – Rs. 20,000 |
Please note that solar production and savings etc. are completely dependent on solar power absorption and weather conditions, and hence no claims or guarantees can be made for the actual production in the actual site conditions.
Type of solar panel government subsidy in India
1. PM Surya Ghar Muft Bijli Yojana
This solar panel government subsidy is administered by national and state agencies. It aims to promote rooftop solar installations for households. DISCOMs will facilitate net meters, conduct inspections, and support the solarization of government buildings. The maximum amount of subsidy under this scheme is Rs.78,000.
Also Read: Pradhan Mantri Solar Panel Yojana: Benefits and Features
2. PM-KUSUM Scheme
It was launched in 2019 and expanded in 2024. This solar panel government subsidy initiative aims to provide for farmers and plans to add 30,800 MW solar capacity. It includes decentralized solar power plants, standalone agriculture pumps, and solarization of grid-connected pumps.
Also Read: PM Kusum Yojana Guide: What it is, who can apply, and how to apply
3. New Solar Power Scheme under PM JANMAN
Focused on PVTG habitations, this solar panel government subsidy seeks to electrify 1 lakh un-electrified households and multi-purpose centers with solar systems. CFA support is limited to Rs. 50,000 per un-electrified household for Solar Mini-Grids and is limited to Rs. 1 lakh per Multi-Purpose Center (MPCs).
These initiatives collectively enhance the landscape of offering solar panel subsidy in India, promoting sustainable energy across diverse regions.
How to Apply for PM Surya Ghar Muft Bijli Yojana Subsidy: Step-by-Step
The entire application process is online and runs through the official National Portal — pmsuryaghar.gov.in. Here’s how it works from registration to the subsidy landing in your bank account.
Step 1: Register on the national portal Go to pmsuryaghar.gov.in and select your state and electricity distribution company (DISCOM). Enter your electricity consumer number, mobile number, and email ID exactly as they appear on your latest electricity bill — mismatches here are one of the most common reasons applications get delayed.
Step 2: Log in with OTP Once registered, log in using your mobile number and the OTP sent to it. No password to remember — every session starts with OTP verification.
Step 3: Submit your rooftop solar application Click “Apply for Rooftop Solar” and fill in your system capacity requirement, rooftop details, and consumer details. This creates your application number, which you’ll use to track status going forward.
Step 4: Get DISCOM feasibility approval Your local DISCOM reviews the application and checks technical feasibility (grid capacity, rooftop suitability, sanctioned load). This typically takes about 7–15 working days, depending on the state.
Step 5: Choose a registered vendor Once approved, select an empanelled/registered vendor listed on the portal for your area. Only vendors registered with the scheme are eligible to install a subsidy-linked system — this is worth confirming directly with your installer.
Step 6: Installation Your chosen vendor installs the system using ALMM-approved (Approved List of Models and Manufacturers) panels, as required by the scheme. Installation is generally completed within 90 days of vendor selection, though this can vary by state and system size.
Step 7: Net meter installation and DISCOM inspection After installation, the DISCOM installs a net meter and conducts a physical inspection to confirm the system matches the approved application.
Step 8: Commissioning certificate and subsidy disbursement Once inspection is cleared, a commissioning certificate is generated on the portal. You then submit your bank account details (linked to your Aadhaar) directly on the portal. The subsidy is credited via Direct Benefit Transfer (DBT) straight to your bank account — no separate claim process needed.
Documents Required for Solar Subsidy Application
Keep these ready before you start your application:
- Aadhaar card (name must match your electricity bill exactly)
- Latest electricity bill / consumer number
- Proof of property ownership or occupancy
- Bank passbook or a cancelled cheque (for DBT subsidy transfer)
- Passport-size photograph
- Mobile number linked to Aadhaar (for OTP-based login and verification)
Who is Eligible for the Solar Subsidy?
- Must be an Indian citizen
- Must own a legally recognized residential property with adequate rooftop space
- Should not have availed a rooftop solar subsidy on the same property before
- Property should have a valid electricity connection in the applicant’s name
- Subsidy applies specifically to grid-connected residential rooftop systems (not standalone/off-grid systems)
Typical Application Timeline
| Stage | Typical Duration |
|---|---|
| DISCOM feasibility approval | 7–15 working days |
| Vendor selection | Applicant’s discretion |
| Installation | Up to 90 days from vendor selection |
| Net meter + inspection | Scheduled after installation, varies by DISCOM |
| Subsidy credit (DBT) | After commissioning certificate is issued |
Note: timelines vary by state and DISCOM workload — mention this caveat on-page to stay accurate rather than overpromising a fixed number of days.
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