In an encouraging move, the Andhra Pradesh government is taking steps to implement PM Surya Ghar and PM Kusum Yojana in full-fledged mode. Under these solar subsidy schemes in Andhra Pradesh, the DISCOMs will install solar rooftops and will solarize 100 percent of Nadimuru village in Chittoor and Naravaripalle village in Tirupati as model solar villages. Additionally, the plan also envisions five villages in each district to be developed as model solar villages under a pilot project.

If you are planning to install solar rooftop solutions for your house, there are various encouraging incentives by the government in the form of solar subsidy scheme in AP and financial assistance along with tax benefits. Let’s look into this further.

Government initiatives and schemes to avail solar subsidy in Andhra Pradesh

Under central and state government, various initiatives and schemes are released to promote solar energy and the adoption of solar solutions for both residential and commercial purposes. Let’s look at the prevalent schemes that allow for availing solar subsidy in Andhra Pradesh.

1. Solar standalone power plants

The Ministry of New and Renewable Energy (MNRE) has launched a program called Solar Standalone Power Plants to support off-grid power needs for homes, institutions, and businesses. Under this program, MNRE offers financial support (CFA) as follows:

• For systems with battery backup : Rs. 90 per watt.
• For systems without battery backup : Rs. 70 per watt.
• Maximum support : The CFA will be up to 30% of the total project cost, whichever is lower.

The CFA is provided based on the following limits:

• Domestic use : Up to 1 kW capacity.
• Institutions/Commercial use : Up to 100 kW capacity.
• Water pumping systems : Up to 5 kW capacity.

Additionally, domestic users and non-profit institutions can also get soft loans at a 5% interest rate from commercial banks to cover the cost that exceeds the CFA support.

2. PM Surya Ghar Muft Bijli Yojana

The SRTPVS (Solar Rooftop Photovoltaic Systems) projects will be promoted in the government and domestic sectors under the “PM-Surya Ghar Muft Bijli Yojana” or any other relevant Government of India and Government of Andhra Pradesh scheme. The aim is to empower at least 10 lakh households to generate their own electricity by installing grid-connected SRTPVS projects under this policy.

Incentives from the Government of India under MNRE schemes, such as Central Financial Assistance (CFA), concessional custom duties on specified items, and other benefits, will be provided to project developers under this scheme to offer solar subsidy in Andhra Pradesh.

• ₹30,000/- per kW up to 2 kW.
• ₹18,000/- per kW for additional capacity up to 3 kW.
• The total subsidy for systems larger than 3 kW is capped at ₹78,000/-

Government of Andhra Pradesh shall provide reimbursement of 100% SGST on SRT projects implemented for domestic/residential consumers or any government buildings under PM Surya Ghar scheme. This shall be paid in addition to any other solar subsidy in Andhra Pradesh.

Steps to follow to get solar subsidy in Andhra Pradesh under PM Surya Ghar Muft Bijli Yojana:

• Check the portal www.solarrooftop.gov.in
• Check the registration box and click on Apply for Rooftop Solar on the homepage.
• Enter the details
• The rates of solar subsidy Andhra Pradesh are as follows: INR 30,000 for up to 2kw solar and thereafter INR 18,000 per kW till the next 3kw.

3. PM KUSUM

Andhra Pradesh, with its abundant solar resources, has set an ambitious target to significantly expand its solar power generation capacity. The state aims to align with the Central Government's target of achieving 500 GW of renewable energy capacity by 2030, with solar power being a critical component.

The state aims to tap into the potential of the abundant solar resources, along with encouraging decentralization of solar power generation through distributed generation through central 31 schemes like PM Surya Ghar Yojana, Solarization of feeders through PM KUSUM scheme, or any new schemes announced during the policy period etc. (As stated in Andhra Energy Policy document released by the AP government.)

Under the PM KUSUM Yojana, central government subsidy of up to 30% or 50% of the total cost is given for the installation of standalone solar pumps and also for the solarization of existing grid-connected agricultural pumps.

Farmers can also install grid-connected solar power plants up to 2MW under the Scheme on their barren/fallow land and sell electricity to local DISCOM at a tariff determined by state regulators.

Estimated cost of installation of solar panels in Andhra Pradesh

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How to apply for solar subsidy in Andhra Pradesh?

To get a solar subsidy in Andhra Pradesh, you need to know the following steps:

Read More: Solar Panel Subsidy in India 2025

How to apply for net-metering to avail of the benefit of the solar subsidy scheme in Andhra Pradesh?

Net metering is important as with that in place solar panel owners can sell the extra electricity generated to the DISCOM and earn money. This encourages people to choose solar power solutions and also get benefitted by various schemes offering solar subsidy in Andhra Pradesh. With solar panel solutions in place, you can earn extra income, get a reduced electricity bill, take steps towards being energy independent for the coming 25-30 years, increase the value of your home, and be sustainable in your approach towards energy sources.

To apply for a net meter in Andhra Pradesh, follow these steps:

1. Visit the Andhra Pradesh Electricity Regulatory Commission (APERC) website for a net meter application..

2. Fill out the form for the net meter and enter your details.

3. Then submit the form.

4. You have to wait for the approval.

5. After you get approved, you have to submit the required documents and payment.

Why choose Truzon Solar for Solar Panel installation in Andhra Pradesh?

Truzon Solar has been serving Industrial and Commercial Rooftop Solar Power Systems with more than 2 Lakh+ happy customers across India. We pride ourselves in our quality, with products and components that are internationally certified to meet the highest quality and standards.

With a proven track record of over 2 Lakh+ Solar Water Heaters, 4500+ solar projects, and Solar Rooftop installations in Industrial, Commercial, and Residential sectors, we continue to make a positive impact on the environment and society.

If you are looking to avail yourself of the solar subsidy in Andhra Pradesh, contact us today for a free site visit today!

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FAQ on solar subsidy in Andhra Pradesh

1. How much subsidy on solar panels in AP?

Under PM Surya Ghar Muft Bijlli Yojana, the maximum subsidy is capped at INR 78000.

2. Is PM Kusum Yojana available in Andhra Pradesh?

Yes, the Andhra Pradesh government has got the sanction of solarization of feeders under PM Kusum Yojana.

3. Can I sell solar energy in Andhra Pradesh?

Through net metering, you can sell the extra energy generated back to the DISCOM and earn extra money.

4. What is the subsidy for the 5kW solar system in AP?

The subsidy for a 5 kW solar system in AP is capped at INR 78000. Anything above 3 kW is capped for a subsidy amount of 78000.