What Is Solar Subsidy in India?

Solar subsidy (also called Central Financial Assistance or CFA) is a financial incentive offered under the MNRE Grid Connected Rooftop Solar Programme. This subsidy helps residential homeowners reduce the upfront cost of installing rooftop solar systems.

Who Is Eligible for Solar Subsidy?

You are typically eligible if:

• You are a residential property owner

• You install a grid-connected rooftop solar system

• The system uses equipment (panels/inverters) approved under the scheme

• The installation is handled by a vendor empaneled or acceptable under the programme

• You have net-metering agreement in place

Note:
Hybrid systems with batteries and off-grid systems usually do not qualify for this central subsidy.

How Much Solar Subsidy Is Available (Central Government)

The amount of central government subsidy depends on the size of the system you install.

Residential Solar Subsidy Structure (2026)

• Solar rooftop systems up to 3 kW
  → Eligible for 40% of benchmark cost as subsidy (approx ₹18,000 per kW)

• Systems above 3 kW and up to 10 kW
  → Eligible for 20% of benchmark cost subsidy (approx ₹9,000 per kW)
  

• No central subsidy above 10 kW capacity for individual households
  

The subsidy amount is distributed after installation and verification by your state DISCOM or through the national rooftop solar portal

State-Level Subsidy & Additional Benefits

In addition to central support, many states offer extra solar incentives, which vary significantly depending on local policies and energy boards. Here are some examples (indicative):

• Rajasthan – Additional state subsidy on top of central subsidy for residential rooftop systems.

• Delhi (NCT) – State offers approximately ₹2,000 per kW (max ~₹6,000) bonus along with CFA, plus some DISCOM fee waivers.

• Uttar Pradesh – Central subsidy + state support (up to ~₹15,000 extra) for rooftop installs.

• Maharashtra & Gujarat – Additional assistance and rebates available under state solar policies.
  

👉 Actual availability and amounts depend on specific state electricity policies and current budget allocations — always check with your local DISCOM or state energy department before applying.

How Much Money Can You Save With Solar Subsidy?

The total financial benefit from solar subsidy typically combines:

✅ Central government CFA
✅ State government incentives (where applicable)

Example (illustrative):

• Central subsidy up to ₹78,000 for a 3 kW system

• State subsidy (in some states) ~₹30,000

• Possible total benefit ~₹1,08,000
  

This can significantly reduce your upfront cost and improve ROI on your rooftop system.

Types of Solar Systems Eligible for Subsidy

On-Grid Solar Systems

Eligible for central and state subsidies if all conditions are met.

Off-Grid Systems

Typically not eligible for central rooftop solar subsidy.

Hybrid Systems (Battery + Grid)

May not qualify for central subsidy — check with your installer first.

Detailed eligibility and implementation guidelines are provided through the official MNRE rooftop solar programme documents and portals

Step-by-Step Guide to Applying for Solar Subsidy

1. Choose an MNRE-friendly/approved solar installer

Your installer should understand the subsidy process and portal requirements.

2. Register on the rooftop solar subsidy portal

Use the National Rooftop Solar Portal or your state DISCOM portal.

3. Submit required documents

This includes proof of residence, Aadhaar, electricity connection number, etc.

4. Get feasibility and net-metering approval

Your DISCOM will inspect the site and approve net metering.

5. Complete installation & commissioning

Once installed, DISCOM will inspect and commission the system.

6. Subsidy release

Approved subsidy amount is generally credited directly to your bank account or adjusted with your installer’s invoice.

Documents Required for Solar Subsidy

Typical documents include:

• Aadhaar card

• Latest electricity bill

• Address proof

• Bank account details

• Net-metering approval or application proof
  

Check with your installer or DISCOM for the exact checklist required in your state.

Common Myths About Solar Subsidy

❌ Myth: Subsidy applies to battery systems
✔️ Reality: Usually not — central subsidy is mainly for grid-connected systems.

❌ Myth: Subsidy is automatic
✔️ Reality: You must apply and go through approvals.

❌ Myth: State subsidy is same everywhere
✔️ Reality: It varies by state and policy.

Is Solar Subsidy Worth It?

Yes, if you:

• Want to reduce upfront costs

• Aim for faster return on investment

• Seek long-term savings on electricity bills

Even without subsidy, rooftop solar is a great investment — but subsidy accelerates value.

Get Expert Help With Solar Subsidy

Falcon Solar's Partners assists homeowners with the full subsidy process, including documentation, approvals, installation, and net-metering setup.

👉 Get Free Solar Subsidy Assistance

Check Your Subsidy Eligibility