India offers some of the most generous residential solar subsidies in the world, and uptake is accelerating fast, though the scheme has room to run before it hits its target. Here is everything you need to know, in plain language.
Launched in February 2024, PM Surya Ghar is India's flagship residential solar programme, targeting 1 crore homes by March 2027. It provides direct subsidies for rooftop installation and additionally promises 300 units of free electricity per month to eligible households. Uptake has accelerated sharply through FY 2025–26, with cumulative rooftop installations under the scheme now well past 40 lakh households nationally, still short of the 1-crore target, but a meaningful share of it.
| System size | Central subsidy | Typical cost (before subsidy) | Net cost after subsidy | Approx annual saving |
|---|---|---|---|---|
| 1 kW | ₹30,000 | ₹70,000–80,000 | ₹40,000–50,000 | ₹10,000–13,000 |
| 2 kW | ₹60,000 | ₹1.40–1.55L | ₹80,000–95,000 | ₹20,000–26,000 |
| 3 kW | ₹78,000 | ₹1.90–2.10L | ₹1.12–1.32L | ₹30,000–40,000 |
| Above 3 kW | ₹78,000 (cap) | ₹2.40L+ | ₹1.60L+ | ₹40,000+ |
The structure behind these numbers: ₹30,000 per kW for the first 2 kW, ₹18,000 for the third kW, capped at ₹78,000. Smaller systems cost more per kW installed (fixed costs of structure, wiring and net metering spread over fewer panels), which is why a 1 kW system isn't simply a third of a 3 kW price.
A handful of states add their own incentive on top of the central amount, though several of these are targeted at specific categories (rural, EWS, SC/ST) rather than every applicant, and terms shift often. For a 3 kW system:
| State | Central (3 kW) | State top-up | Scheme |
|---|---|---|---|
| Gujarat | ₹78,000 | + ₹10,000/kW, up to ₹20k–30k | GEDA / Surya Gujarat |
| Rajasthan | ₹78,000 | + variable, category-dependent | RREC |
| Maharashtra | ₹78,000 | + top-up for rural/EWS households | MSEDCL SMART Solar |
| Uttar Pradesh | ₹78,000 | + support, largely SC/ST-targeted | UPNEDA |
| Delhi | ₹78,000 | + small top-up & per-unit export incentive | BSES / TPDDL |
| Tamil Nadu | ₹78,000 | Net-meter fee waived (<5 kW) | TANGEDCO |
| Karnataka | ₹78,000 | Nil, fastest DISCOM turnaround instead | BESCOM |
State subsidies are the most volatile numbers on this page, amounts, eligibility and even which states offer them change with annual state budgets, and several "top-ups" apply only to specific income or social categories rather than every applicant. Treat this table as directional. Always confirm the current figure on your state's DISCOM or renewable energy development agency site, or with an MNRE-empanelled installer, before signing a contract.
Eligibility depends on your state, DISCOM and system size. Use the state subsidy explorer to confirm your exact entitlement, then apply through the national portal.
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