Solar Panel Subsidy India 2026 State-wise Subsidy List & Central Government Scheme
India offers generous solar subsidies through the PM Surya Ghar Muft Bijli Yojana (up to ₹78,000 for 3 kW) plus additional state-level incentives that can reduce costs by a further ₹10,000-50,000. Combined central and state subsidies can bring a 3 kW rooftop system cost down to as low as ₹40,000-70,000 in states like Gujarat, Maharashtra, and Kerala. The subsidy landscape changes frequently as state renewable energy agencies update their programmes, so this guide covers the latest 2026 subsidy amounts by state including eligibility criteria, application process, and how to stack central plus state benefits for maximum savings.
Central Government Subsidy — PM Surya Ghar Muft Bijli Yojana
The primary subsidy comes from the central government through the PM Surya Ghar Muft Bijli Yojana, launched in February 2024 with a massive budget of ₹75,021 crore. The subsidy structure is tiered: ₹30,000 per kW for the first 2 kW (₹60,000 for a 2 kW system) and ₹18,000 per kW for the 3rd kW (additional ₹18,000). The maximum central subsidy is ₹78,000 for systems of 3 kW or above. Systems larger than 3 kW still receive only ₹78,000 — there is no additional subsidy beyond the 3rd kW. Only grid-connected systems using ALMM-listed (Approved List of Models and Manufacturers) domestically manufactured solar panels qualify. The subsidy is a direct benefit transfer (DBT) credited to the beneficiary's Aadhaar-linked bank account within 30 working days of installation verification by the local DISCOM. All residential domestic electricity consumers are eligible regardless of income level.
State-wise Additional Subsidies — Complete List
Several Indian states offer additional subsidies on top of the central PM Surya Ghar scheme, creating a stacking opportunity that significantly reduces out-of-pocket costs. Gujarat: The Gujarat Energy Development Agency (GEDA) offers additional state support that effectively brings the per-kW cost for residential systems among the lowest in India. Combined with central subsidy, a 3 kW system can cost as little as ₹40,000-60,000 out of pocket. Maharashtra: MEDA (Maharashtra Energy Development Agency) facilitates additional incentives for specific categories including BPL households and tribal areas. The state has set aggressive rooftop solar targets under its Solar Policy 2025. Kerala: ANERT (Agency for Non-conventional Energy and Rural Technology) provides state-level support that complements the central subsidy. Kerala has one of the highest per-capita solar adoption rates. Rajasthan: RRECL (Rajasthan Renewable Energy Corporation Limited) coordinates additional state incentives. Rajasthan's excellent solar irradiance (5.5-6.5 hours) makes solar particularly productive. Tamil Nadu: TEDA (Tamil Nadu Energy Development Agency) provides facilitation support. Karnataka: KREDL coordinates the state's solar programmes. Madhya Pradesh, Uttar Pradesh, Haryana, Punjab: Various state renewable energy agencies offer additional facilitation and in some cases supplementary financial support.
How to Stack Central and State Subsidies
To maximize your subsidy benefit, follow this process: Step 1: Apply through the central portal (pmsuryaghar.gov.in) first — this is mandatory for the central ₹78,000 subsidy. Step 2: Check your state renewable energy agency website for any additional state-level subsidy or incentive program. State subsidies may require a separate application or may be automatically processed alongside the central subsidy. Step 3: Verify with your selected vendor (from the PM Surya Ghar registered vendor list) whether they handle both central and state subsidy paperwork. Most established installers are familiar with the stacking process. Step 4: Ensure your system uses ALMM-listed panels (required for central subsidy) and meets any additional state-specific technical requirements. Important note: State subsidy availability and amounts change frequently. Some states have fixed annual budgets that may be exhausted. Apply early in the financial year (April-June) for best availability. The effective combined subsidy can range from ₹78,000 (central only) to ₹1,00,000-1,30,000 (central plus generous state support).
Subsidy for Different System Sizes — Cost Analysis
Understanding the subsidy impact at different system sizes helps you choose the optimal investment. 1 kW system: Before subsidy ₹50,000-65,000. Central subsidy ₹30,000. After subsidy: ₹20,000-35,000. Generates 100-130 units/month. Best for: very small homes with low consumption (under 150 units/month). 2 kW system: Before ₹95,000-1,30,000. Subsidy ₹60,000. After: ₹35,000-70,000. Generates 200-260 units/month. Best for: small to medium homes, 2-3 rooms. 3 kW system (BEST VALUE): Before ₹1,40,000-1,95,000. Subsidy ₹78,000. After: ₹62,000-1,17,000. Generates 300-400 units/month. Best for: most Indian households. The 3 kW size offers the maximum subsidy per rupee invested. 5 kW system: Before ₹2,25,000-3,25,000. Subsidy still ₹78,000. After: ₹1,47,000-2,47,000. Generates 500-650 units/month. Best for: larger homes with multiple ACs. 10 kW system: Before ₹4,50,000-6,50,000. Subsidy ₹78,000. After: ₹3,72,000-5,72,000. Best for: bungalows, farmhouses, or homes planning EV charging. The 3 kW system is the sweet spot because the subsidy covers the highest proportion of total cost (40-55% of system price).
ALMM and BIS Requirements — What Qualifies for Subsidy
Not all solar panels qualify for the PM Surya Ghar subsidy. The government mandates specific technical requirements to ensure quality and promote domestic manufacturing. ALMM (Approved List of Models and Manufacturers): Solar panels must be from manufacturers and models listed on the MNRE ALMM register. This list includes major Indian manufacturers like Tata Power Solar, Adani Solar, Vikram Solar, Waaree Energies, Premier Energies, and Renewsys, as well as Indian manufacturing units of international brands. BIS certification (IS 14286): Panels must carry BIS certification mark, ensuring they meet Indian standards for electrical safety, performance, and durability. DCR (Domestic Content Requirement): Solar cells and modules must be manufactured in India. Imported panels (even tier-1 Chinese brands) do not qualify unless manufactured at their Indian facilities. This policy promotes the domestic solar manufacturing ecosystem under the Make in India initiative. Inverters: Must be BIS certified and compatible with DISCOM net metering requirements. Both string inverters and microinverters qualify. The inverter does not need to be on the ALMM list but must meet IS 16169 or relevant standards. Always verify ALMM listing with your vendor before purchase — panels not on the list will result in subsidy rejection.
Subsidy for Housing Societies and Apartments
Group housing societies and apartment buildings can participate in PM Surya Ghar through a communal rooftop installation. The RWA (Resident Welfare Association) or Apartment Owners Association applies on behalf of all participating households. The subsidy is calculated per household unit — each participating flat receives up to ₹78,000 subsidy for their share of the communal system. For example, a 20-flat society installing a 60 kW system (3 kW per flat) could receive up to ₹78,000 × 20 = ₹15,60,000 in total subsidy. The generated electricity is typically allocated proportionally to each participating flat, either through a common meter with proportional billing adjustment or through individual sub-meters. The society needs to coordinate with a MNRE-registered vendor who handles large installations. Challenges specific to societies: Getting consensus from all residents, resolving shading and orientation issues on shared rooftops, allocating costs and benefits fairly among flats of different sizes, and managing ongoing maintenance responsibilities. Many societies appoint a solar committee to handle these aspects. Despite the complexity, society installations benefit from economies of scale — per-kW costs are typically 10-20% lower than individual installations.
Timeline and Budget — Will the Subsidy Last?
The PM Surya Ghar scheme has a total budget of ₹75,021 crore allocated until March 2027. As of 2026, approximately ₹25,000-30,000 crore has been utilized, leaving significant budget available. However, the pace of applications has accelerated dramatically — from 10 lakh applications in the first 6 months to over 50 lakh cumulative. Recommendation: Apply sooner rather than later. While the budget appears sufficient for the target 1 crore installations, there is always political risk of scheme modifications, budget reallocation, or subsidy amount changes. State-level subsidies are even more vulnerable to budget exhaustion — many states operate on annual allocations that can run out by Q3 of the financial year. The application process itself takes 2-4 months, so delaying further extends your timeline. Solar panel prices are at historic lows in 2026 and may not fall much further — the combination of low equipment cost and generous subsidy makes this an optimal window for installation.
| State | Central Subsidy (3kW) | State Add-on | Total Subsidy | Your Cost (est.) |
|---|---|---|---|---|
| Gujarat | ₹78,000 | ₹10,000-20,000 | ₹88,000-98,000 | ₹42,000-62,000 |
| Maharashtra | ₹78,000 | ₹5,000-15,000 | ₹83,000-93,000 | ₹47,000-67,000 |
| Kerala | ₹78,000 | ₹5,000-10,000 | ₹83,000-88,000 | ₹52,000-72,000 |
| Rajasthan | ₹78,000 | ₹5,000-10,000 | ₹83,000-88,000 | ₹52,000-72,000 |
| Tamil Nadu | ₹78,000 | Facilitation only | ₹78,000 | ₹62,000-82,000 |
| Karnataka | ₹78,000 | Facilitation only | ₹78,000 | ₹62,000-82,000 |
| UP/MP/Delhi | ₹78,000 | Varies | ₹78,000+ | ₹62,000-92,000 |
State subsidies vary by program year and budget availability. Amounts are approximate and subject to change. "Your Cost" assumes 3 kW system at ₹1,40,000-1,60,000 before subsidies. Verify current state subsidy availability with your state renewable energy agency.
Frequently Asked Questions
What is the maximum solar subsidy in India 2026?
How do I apply for solar subsidy in India?
Do all solar panels qualify for the subsidy?
Can I get subsidy for a system larger than 3 kW?
How long does the solar subsidy application take?
Disclaimer: This article is for educational reference only. Rates and policies may change. Verify current information with official sources. All electrical work should be performed by a licensed professional.