Solar Subsidies in India: What You Can Actually Claim
Government support for solar makes the switch far more affordable — but the scheme that applies to you depends on whether you’re a homeowner or a business. Here’s a clear breakdown, and SauryaVeda handles the entire application process for you as part of our service.
For Homeowners: PM Surya Ghar Muft Bijli Yojana
This is the central government’s flagship rooftop solar scheme, offering a direct subsidy paid straight to you after installation.
Subsidy by system size:
- 1 kW system: ₹30,000
- 2 kW system: ₹60,000
- 3 kW and above: ₹78,000 (maximum central subsidy)
This subsidy is uniform across India, administered by the Ministry of New and Renewable Energy (MNRE), and applies to residential installations only. Full official details are on the National PM Surya Ghar portal.
Eligibility:
- Solar panels installed at your residence (not a business or factory)
- A valid electricity connection in your name
- A rooftop with adequate sunlight exposure and structural capacity
- Approval from your local DISCOM (electricity distribution company)
Housing societies: Resident Welfare Associations (RWAs) and Group Housing Societies can claim ₹18,000 per kW for solar installed on common areas.
State-Level Top-Ups: What’s On Top of the Central Subsidy
Some states add their own subsidy on top of the central PM Surya Ghar amount — others don’t. Here’s where things stand for our key markets. Each state name links to its official nodal renewable energy agency for the latest figures:
- Delhi — adds up to ₹30,000 for 3 kW+, taking the combined total to up to ₹1.08 lakh. Net-metering runs through BSES Rajdhani (BRPL), BSES Yamuna (BYPL), or Tata Power Delhi Distribution (TPDDL).
- Uttar Pradesh — adds ₹15,000 per kW up to 2 kW, capped at ₹30,000 per consumer, taking the combined total to up to ₹1.08 lakh for 3 kW+ (1 kW: ₹45,000; 2 kW: ₹90,000). Administered through UPNEDA and your local DISCOM.
- Bihar — adds ₹10,000 per kW, capped at ₹20,000 per consumer, taking the combined total to up to ₹98,000 for 3 kW+ (1 kW: ₹40,000; 2 kW: ₹80,000). Bihar also offers a collateral-free loan of up to ₹2 lakh at 5.75% interest for systems up to 3 kW.
- Haryana — no additional state subsidy currently; you receive the central amount only, up to ₹78,000 for 3 kW+. Covered by DHBVN and UHBVN.
- Madhya Pradesh — no confirmed additional state subsidy at present; central amount only, up to ₹78,000 for 3 kW+. Covered by MP’s regional DISCOMs (MPPKVVCL, MPMKVVCL, and the eastern discom).
- Punjab — no additional state subsidy currently; central amount only, up to ₹78,000 for 3 kW+. Covered by PSPCL.
- Rajasthan — adds ₹17,000, taking the combined total to up to ₹95,000 for 3 kW+. Implemented through JVVNL, AVVNL, and JdVVNL.
- Uttarakhand — no separate state subsidy, but as a hilly-terrain state it qualifies for a 10% higher central subsidy cap: up to ₹85,800 for 3 kW+ (versus ₹78,000 in standard states).
- Himachal Pradesh — no separate state cash subsidy confirmed at present; you receive the central amount, up to ₹78,000 for 3 kW+, plus a state net-metering facility via HIMURJA to monetize surplus generation.
- Jammu & Kashmir — no additional UT subsidy currently; central amount only, up to ₹78,000 for 3 kW+. Implemented through JKSPDC/JAKEDA.
- Chandigarh — an additional ₹30,000 top-up (which would take the combined total to ₹1.08 lakh) has been proposed by the UT Administration but is still pending approval from the Ministry of Home Affairs — not yet in effect. Until approved, only the central amount applies.
Subsidy availability and amounts are set by the government and DISCOMs, and can change — several states revise or introduce top-ups periodically. SauryaVeda will confirm the exact scheme and figures applicable to your location and system size at the time of your quotation.
For Businesses: Accelerated Depreciation, Not Direct Subsidy
Commercial and industrial customers aren’t eligible for PM Surya Ghar — that scheme is residential-only. Instead, the government incentive for businesses works through the tax system:
Accelerated depreciation: Under the Income Tax Act, solar power generating assets qualify for a 40% depreciation rate — significantly higher than most other business assets. This lets businesses write off a large share of their solar investment against taxable income in the very first year, substantially improving the payback period on a commercial solar installation.
This makes commercial solar attractive even without a direct subsidy — many businesses recover a meaningful portion of their investment through tax savings alone in year one, on top of the ongoing electricity bill savings.
Businesses considering PM-KUSUM (relevant for agricultural/irrigation use) or any other applicable scheme should speak with our team — eligibility depends on your specific use case.
How SauryaVeda Handles Your Subsidy Application
You don’t need to navigate government portals or DISCOM paperwork yourself. As part of our EPC service, SauryaVeda:
- Confirms your eligibility and the exact subsidy amount for your project during the site assessment
- Handles the DISCOM technical approval and net-metering application
- Manages the subsidy claim submission after installation and commissioning
- Keeps you updated through to disbursement
Get a Free Quote to find out exactly what you qualify for.
For the latest official figures, verify directly at the National PM Surya Ghar portal (pmsuryaghar.gov.in) and your state’s renewable energy nodal agency linked above — scheme amounts are periodically revised by the government, and SauryaVeda confirms the exact current figures for your location during your quotation.