It can be a great idea to switch to solar, but let’s be honest, the upfront cost may be a bit scary. So this is where the solar panel subsidy comes in India. Whether you are trying to cut your electricity bill or try to make your fields more energy-efficient, many government-backed schemes make solar energy accessible and affordable.
In this post, we will be discussing the types of subsidies available in India, the benefits, and how to apply.
What Is a Solar Panel Subsidy?
A solar panel subsidy is financial support provided by the government to reduce the cost of buying and installing solar systems. The goal? To make subsidised solar panels more accessible for homes, farms, and businesses.
Depending on the program, you can cover the portion of the installation cost – up to 60%. These subsidies apply to both solar power systems and solar water pumps, which help people to switch to clean, inexpensive energy.
Top Solar Panel Government Subsidies
India currently offers a few key programs that make solar more budget-friendly. Here’s a look at the most common solar panel government scheme options and what they offer.
PM Surya Ghar Muft Bijli Yojana
Launched in 2024, the scheme is designed to make solar energy cheaper for Indian families every day. It supports roof solar installations and gives homes up to 300 units of free electricity every month- making it a great option for middle and low-income homes to cut power bills.
Therefore, through this solar installation subsidy, families can benefit greatly.
Subsidy structure:
- Up to ₹30,000 for 1 kW systems
- ₹60,000 for 2 kW systems
- ₹78,000 (max) for 3 kW or more
Where to apply: Visit the official website at pmsuryaghar.gov.in
Grid Connected Rooftop Solar Programme (MNRE)
This is one of India’s biggest and longest-running solar subsidy programs, managed by the Ministry of New and Renewable Energy (MNRE). It targets residential and institutional sectors and aims to install 40,000 MW of rooftop solar capacity by 2026.
Subsidy breakdown:
- 40% subsidy for systems up to 3 kW
- 20% subsidy for systems between 3 and 10 kW
- Special incentives for housing societies and group installations
Only MNRE-approved vendors and equipment qualify, so be sure to check that before purchasing.
Apply through: National Rooftop Solar Portal or your local DISCOM portal.
PM-KUSUM Scheme
This one’s for farmers. The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) aims to transfer rural India to solar-operated solutions from diesel-operated pumps.
What’s covered:
- Component A: Installation of 10,000 MW of decentralised solar power plants
- Component B: 20 lakh standalone solar pumps for off-grid areas
- Component C: Solarisation of 15 lakh grid-connected agricultural pumps
Benefits:
- Up to 60% subsidy on solar pumps
- An additional 30% loan assistance
- Farmers pay only 10% of the total cost in some cases
This scheme doesn’t just lower electricity costs—it also gives farmers the opportunity to sell extra power to DISCOMs and earn income.
Production Linked Incentive (PLI) Scheme for Solar PV Modules
Unlike others, the PLI scheme is not aimed at consumers. This is for manufacturers, so that India’s high-efficiency solar PV module can help.
With a budget of 24,000 crores, the government promotes companies that produce high-efficiency, locally manufactured solar panels. The goal is to reduce imports, create jobs, and make India self-sufficient in clean energy technology.
When you cannot apply as a buyer, you indirectly benefit. This scheme helps to bring down the solar panel installation subsidy by encouraging more domestic supply.
How to Apply for a Solar Panel Subsidy in India?
Applying is easier than you might think. Here’s the usual process:
- Visit the official portal for your scheme (e.g., pmsuryaghar.gov.in or solarrooftop.gov.in)
- Register using your mobile number and electricity consumer number
- Choose an MNRE-empanelled vendor and submit a proposal
- Once approved, install the system and request an inspection
- After verification, your subsidy gets transferred directly to your bank account
If you’re working with a local vendor, they often handle the paperwork and application for you.
Eligibility Criteria for Getting a Solar Subsidy
To get a solar installation subsidy, you’ll need to meet a few basic requirements:
- You must be an Indian citizen
- You should own the property where the system is being installed
- Your rooftop should be suitable for solar panel installation
- Only MNRE-approved panels and vendors qualify for subsidies
- You must use a grid-connected solar system (off-grid systems don’t always qualify)
For farmers applying under PM-KUSUM, land ownership or lease agreements and agricultural power usage may be required.
Conclusion
Solar energy is no longer only for the rich or environmentally conscious-it is now a smart financial step for many Indian homes and businesses. Thanks to the solar panel subsidy programs in place, switching to clean energy and getting solar electricity subsidy has never been cheaper.
If you are ready to explore your options, at L&T-Sufin, you can compare solar panel prices, buy approved models, and even order in bulk for large projects. With verified vendors, transparent quotes, and easy purchase options, this is the right place to start your solar journey.
FAQs
How much subsidy can I get on solar panels in 2025?
The PM Surya Ghar Yojana offers up to 78,000 rupees on a 3 kW rooftop system. MNRE provides 40% for more than 3 kW, and 20% between 3 and 10 kW.
Who is eligible for the solar subsidy?
To qualify for the grant, families must have a valid power connection and should not have claimed any previous solar panel subsidy. The entire process – from the application to the installation – should be performed only through the national portal using Empaneld vendors and domestically made solar panels, following all MNRE guidelines.
How can I apply for the solar panel subsidy?
You can apply online through official platforms like pmsuryaghar.gov.in or solarrooftop.gov.in. Most vendors also help with the process.
How long does it take to receive the solar subsidy?
After the installation and verification of the system, the subsidy will be credited within a few weeks to a few months. This depends on your local DISCOM.
How much subsidy is available for rooftop solar installations in India?
Generally, you get a 40% subsidy for a 3 KW and 3-10 KW system under the MNRE scheme.
Is there a subsidy for solar panels in all Indian states?
Yes, but the process and additional benefits may vary slightly depending on your state and local DISCOM.
What documents are required for a solar subsidy application?
You will need identity proof, an electricity bill, bank details, property documents, and evidence of a seller’s invoice.
Is there any tax benefit along with the subsidy for solar panels?
While there is no direct income tax exemption, businesses can claim depreciation under certain classes. Always check with a tax advisor.
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