In the past decade, India has seen growth in solar adoption by over 30 times. The installed capacity as of January 2025 is 100.33 GW. This growth is a major step towards achieving the country's goal of 500 GW of non-fossil fuel-based energy capacity by 2030 .

The breakdown is as follows:

S.No	Category	Capacity (GW)
1	Ground Mounted Solar Plant	76.95
2	Grid Connected Solar Rooftop	16.28
3	Hybrid Projects (Solar)	2.85
4	Off-Grid Solar	4.25

If you are considering installing solar panels at your home or factories, you get a variety of options to avail of solar panel subsidy from the Indian Government.

In this blog, you will find a detailed explanation of different options for availing solar panel subsidy, eligibility, benefits and offerings by both central and state governments.

What is a solar panel subsidy?

Solar panel subsidy is an incentive by the government to encourage the implementation of solar panels for residential purposes. It is an attempt to encourage the adoption of green energy, aim for sustainability, reduce carbon footprint, and make electricity affordable and rewarding for the greater good.

Solar panel subsidy reduces the overall cost of installation and brings in energy independence for households. On a wider scale, it supports the drive towards a green economy and advancements towards national energy goals.

Various Initiatives for Solar Panel Subsidy in India 2025

The government of India is encouraging the adoption of solar energy and has released a few incentives and initiatives to support the cause. Let’s look into these initiatives.

PM Surya Ghar Muft Bijli Yojana

The scheme will be implemented by a National Programme Implementation Agency (NPIA) at the National level and by the State Implementation Agencies (SIAs) at the state level. The Distribution Utility (DISCOMs or Power/Energy Departments, as the case may be) shall be the State Implementation Agencies (SIA) at the State/UT level.

Under the scheme, DISCOMs will need to implement several supportive measures to promote rooftop solar in their respective areas. These measures include ensuring the availability of net meters, conducting timely inspections and commissioning of installations, managing vendor registration, and facilitating interdepartmental coordination for the solarization of government buildings.

How does PM Surya Ghar Muft Bijli Yojana work?

The scheme provides for a subsidy of 60% of the solar unit cost for systems up to 2kW capacity and 40 percent of additional system cost for systems between 2 to 3kW capacity. The subsidy has been capped at 3kW capacity.

Average Monthly Electricity Consumption (units)	Suitable Rooftop Solar Plant Capacity	Subsidy Support
0-150	1-2 kW	₹ 30,000/- to ₹ 60,000/-
150-300	2-3 kW	₹ 60,000/- to ₹ 78,000/-
> 300Above	3 kW	₹ 78,000/-

Who can avail of solar panel subsidy in India?

Eligibility criteria to avail solar panel subsidy in India:

• -The household must be an Indian citizen.
• -The household must own a house with a roof that is suitable for installing solar panels.
• -The household must have a valid electricity connection.
• -The household must not have availed of any other subsidy for solar panels.

Central Financial Assistance (CFA) for Residential Rooftop Solar

1. The households will apply for subsidy through the National Portal and will be able to select a suitable vendor for installing rooftop solar. The National Portal will assist the households in their decision-making process by providing relevant information such as appropriate system sizes, benefits calculator, vendor rating etc.
2. Households will be able to access collateral-free low-interest loan products of around 7% at present for installation of residential RTS systems up to 3 kW.

Steps involved to avail solar panel subsidy in India:

Step-1: Visit the official website.

Step-2: Provide the following details for registration.

• - Select your State
• - Select your Electricity Distribution Company
• - Enter your Electricity Consumer Number
• - Enter Mobile Number
• - Enter Email
• - Please follow as per the directions from the portal.

Step-3: Login with your Consumer Number & Mobile Number.

Step-4: Apply for the Rooftop Solar as per the form.

Step-5: Fill out the online application form.

Step-6: Wait for the feasibility approval from DISCOM. Once you get the feasibility approval install the plant by any of the registered vendors in your DISCOM.

Step-7: Once installation is over, submit the plant details and apply for a net meter.

Step-8: After installation of net meter and inspection by DISCOM, they will generate a commissioning certificate from the portal.

Step-9: Once you get the commissioning report. Submit the bank account details and a cancelled cheque through the portal. You will receive your subsidy in your bank account within 30 days.

Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme

The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme was launched in 2019 and scaled up in January 2024. It aims to provide energy and water security to farmers, increase their income, reduce the farm sector's reliance on diesel, and curb environmental pollution. The scheme has set targets under three components:

• - Component A aims to establish 10,000 MW of decentralized, grid-connected solar power plants.
• - Component B focuses on installing 20 lakh standalone solar-powered agriculture pumps.
• - Component C targets the solarization of 15 lakh grid-connected agriculture pumps, including feeder-level solarization.

As of June 30, 2024, the PM-KUSUM scheme has benefited 411,222 farmers. The scheme aims to add a solar capacity of 30,800 MW. The last date to apply for the scheme is December 31, 2026.

New Solar Power Scheme (for PVTG Habitations/Villages) under PM JANMAN

The objective is to focus on eleven critical interventions through Nine Line Ministries for implementation.

• Financial Outlay: Rs. 515 Cr.
• Electrification Goal: One lakh un-electrified households (HHs) in 18 states and UT of Andaman & Nicobar Islands.
• Duration: 2023-24 to 2025-26.

Salient Features

1.Solar Home Lighting System (SHLS):

• Target: Scattered un-electrified HHs in PVTG areas.
• Installation of SHLS with LED bulbs and fans, free of cost.
• Onsite comprehensive maintenance services for 5 years.

2.Solar Mini-Grids:

• Target: Clusters of HHs in PVTG habitations/hamlets.
• Installation of Solar Mini-Grid with battery bank, distribution lines, metering, and control equipment.
• Provision of necessary appliances including LED bulbs and fans.
• CFA support is limited to Rs. 50,000 per un-electrified household.

3.Solarisation of Multi-Purpose Centers (MPCs):

• Target: Identified MPCs where grid connection is not feasible.
• Electrification via off-grid solar power pack with a battery bank.
• CFA is limited to Rs. 1 lakh per MPC, covering the entire cost of the system.

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FAQ

1. What is the purpose of the Solar Panel Subsidy in India?

The purpose of the solar panel subsidy in India is to encourage households to adapt to solar energy and this is supported by various incentives to avail solar panel subsidy schemes offered by the Government of India.

2. What is the subsidy for a 1KW Solar Panel?

1KW solar panel subsidy comes around ₹ 30,000/- to ₹ 60,000/- under PM Surya Ghar Muft Bijli Yojana.

3. Does the Indian government give subsidies for solar panels?

The government of India has launched many subsidy schemes like PM Surya Ghar Muft Bijli Yojana, Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme, New Solar Power Scheme (for PVTG Habitations/Villages) under PM JANMAN.

4. How to apply for PM Surya Ghar Muft Bijli Yojana?

To apply for the Rooftop Solar Scheme or the PM Surya Ghar Muft Bijli Yojana visit the official website of PM Surya Ghar Muft Bijli Yojana and click on the ‘Apply for Rooftop Solar’ button.

5. What bank details are required for the release of subsidy through NP?

After receipt of the online commissioning/completion report from DISCOM, the applicant will have to enter the following details for claiming subsidy/CFA:

• Name of the beneficiary
• Account number
• Bank Name
• IFS Code
• Copy of cancelled cheque to be uploaded on the portal