Subsidy for Solar Energy in India | Government Schemes & Benefits 2025

 


Subsidy for Solar Energy in India: A Complete Guide for 2025

Government Subsidies & Incentives for Solar Energy in India

With electricity prices rising and environmental awareness growing, solar energy adoption is booming in India. But for many, the upfront installation cost can still be a barrier. That’s where subsidy for solar energy in India plays a crucial role. Backed by the Government of India, solar subsidies and incentives aim to make clean energy affordable for all.

Whether you’re a homeowner, a business owner, or part of a housing society, this article walks you through everything you need to know about solar subsidies — eligibility, benefits, and how to apply.

Why Subsidies Matter for Solar Growth in India

India is blessed with abundant sunshine, making it ideal for harnessing solar energy. However, without financial support, installing solar systems — especially rooftop units — can be costly.

To accelerate adoption, the government has introduced central and state-level solar subsidy schemes that make going solar both affordable and rewarding.

These subsidies help:

  • Lower the initial cost of installation.
  • Make solar technology accessible across income levels.
  • Encourage individuals and businesses to invest in sustainable energy.

Central Government Subsidy: MNRE Rooftop Solar Programme

The Ministry of New and Renewable Energy (MNRE) runs the Rooftop Solar Programme Phase II, which provides direct subsidies to residential users installing grid-connected rooftop solar systems.

How Much Subsidy Can You Get?

As of 2025, the structure is:

  • 40% subsidy for systems up to 3 kW.
  • 20% subsidy for the portion between 3 kW and 10 kW.
  • No subsidy for systems above 10 kW (except for group housing).

This makes it significantly more affordable to install solar panels at home.

Subsidy for Group Housing Societies & RWAs

Housing societies and Resident Welfare Associations (RWAs) are also eligible for financial support. If a solar system is installed in common areas of a society, the MNRE subsidy is available up to 10 kW per house, with an overall cap of 500 kW per society.

This encourages community-level adoption of solar power and ensures better energy management within residential clusters.

State-Level Solar Subsidy Programs

Apart from central government support, many Indian states offer additional solar subsidies or benefits such as:

  • Capital cost subsidies.
  • Interest-free loans.
  • Net metering incentives.
  • Waivers on electricity duty or wheeling charges.

Some of the states known for active subsidy programs include:

  • Gujarat
  • Uttar Pradesh
  • Maharashtra
  • Rajasthan
  • Haryana
  • Tamil Nadu

Check your state’s energy development agency or DISCOM website to see what’s currently available.

Eligibility Criteria for Solar Panel Subsidy in India

To claim a subsidy for solar energy in India, the applicant must:

  • Be an Indian citizen with a residential property.
  • Use an MNRE-empaneled vendor for installation.
  • Install a grid-connected rooftop system.
  • Register and apply through the National Rooftop Solar Portal

Subsidy claims are processed directly into your bank account after verification.

Step-by-Step: How to Apply for Solar Subsidy

  1. Visit the National Rooftop Solar Portal.
  2. Register with your details and choose a vendor.
  3. Apply for subsidy and wait for approval.
  4. Install the system using an approved installer.
  5. Inspection is done by the local DISCOM.
  6. Receive Subsidy in your linked bank account.

The process is fully online and designed to be transparent and efficient.

How Much Can You Save with a Solar Subsidy?

Let’s take a simple example:

  • A 3 kW system costs around ₹1,80,000.
  • A 40% subsidy reduces your cost by ₹72,000.
  • Your final cost is just ₹1,08,000.
  • Over 25 years, you can save more than ₹6–7 lakhs on electricity bills.

Subsidies not only reduce upfront cost but drastically improve return on investment.

Incentives for Businesses and Commercial Users

While most subsidies target residential users, commercial and industrial consumers also benefit through:

  • Accelerated depreciation (40%) for tax savings.
  • Capital subsidies for micro, small, and medium enterprises (MSMEs).
  • Renewable Energy Certificates (RECs) for green energy trading.

These incentives help businesses recover installation costs quicker while reducing carbon footprints.

Environmental Impact of Going Solar

Besides savings, adopting solar helps:

  • Lower carbon emissions.
  • Decrease dependence on coal-based power.
  • Contribute to India’s goal of 280 GW solar capacity by 2030.

A 5kW solar system can prevent the emission of over 4 tons of CO₂ per year, equivalent to planting 100 trees annually!

Frequently Asked Questions

Can I get a subsidy if I install the solar system myself?

No. Only installations done through MNRE-approved vendors are eligible for subsidies.

Is subsidy available for off-grid systems?

No. Current subsidies apply only to grid-connected rooftop solar systems.

How long does it take to receive the subsidy?

After installation and inspection, it usually takes 30–90 days to receive the subsidy.

Conclusion: Solar Subsidy — A Step Toward Energy Independence

Switching to solar energy in India has never been easier or more rewarding. Thanks to government support, the subsidy for solar energy in India reduces financial barriers and makes clean energy accessible to everyone. Whether you’re looking to cut electricity bills, reduce emissions, or increase property value, now is the time to go solar.

Ready to make the switch?

👉 Learn more and apply for solar subsidy today


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