Solar subsidies can significantly reduce the upfront cost of a rooftop solar system. However, the amount you can receive depends on the current central scheme, your consumer category, your system capacity, your state and the requirements of your DISCOM.
Important: subsidy rules change. Use the latest MNRE guidelines, National Portal information and your DISCOM's current instructions before making a purchase decision.
Central Scheme
PM Surya Ghar Muft Bijli Yojana
PM Surya Ghar Muft Bijli Yojana was launched in 2024 to accelerate residential rooftop solar adoption across India. The scheme provides Central Financial Assistance (CFA) to eligible residential consumers installing qualifying grid-connected rooftop solar systems. The applicable CFA, eligibility requirements and implementation process are governed by the latest MNRE guidelines and amendments.
August 2026 Update
The Government announced additional affordability measures for PM Surya Ghar in July 2026, including higher central financial assistance for the first two kWp of rooftop solar capacity. It also announced access to collateral-free loans from nationalised banks at a concessional interest rate and the inclusion of RESCO/Utility-Led Aggregation models. Because the applicable CFA amount can change through government notifications, verify the current rate before signing a purchase contract.
| Rooftop capacity | CFA structure | What to do |
|---|---|---|
| First 2 kWp | CFA applies at the currently notified residential rate | Verify the latest notified rate |
| Additional capacity up to 3 kWp | CFA may apply under the applicable residential framework | Subject to current MNRE guidelines |
| Beyond 3 kWp | No additional residential CFA beyond the applicable scheme limit | Check the latest notified rules |
What to verify before applying
- • Your consumer category and electricity connection
- • Current DISCOM rooftop-solar process
- • Eligible vendor requirements
- • Metering and commissioning requirements
- • Current CFA rates and applicable capacity limits
- • Whether you have previously received applicable CFA
- • The payment and documentation requirements for your installation pathway
New in 2026
Solar Subsidy Plus Low-Interest Financing
The Government announced in July 2026 that PM Surya Ghar would also support affordability through collateral-free loans from nationalised banks at a concessional interest rate. The announced rate was repo rate plus 50 basis points, which was 5.75% per annum at the time of the announcement, with a stated 10-year tenure.
CFA
Central financial assistance for eligible residential rooftop solar.
Collateral-free
Government-announced financing support through participating nationalised banks.
10 years
Tenure stated in the July 2026 Government announcement.
Loan availability, lender participation, interest rates and terms should be confirmed with the participating bank before relying on financing in your project calculation. The 5.75% figure applies to eligible residential rooftop systems and was the rate stated by the Government on 28 July 2026; it is not a fixed rate for every solar product. Read the official MNRE/PIB announcement.
How to Apply for Solar Subsidy
The exact workflow depends on the current national programme and your DISCOM, but the process generally follows these stages.
Register on the Portal
Submit your residential rooftop-solar application using the applicable national portal and your electricity-connection details.
Complete DISCOM Process
Follow the applicable technical-feasibility, approval, metering and documentation requirements of your electricity distribution company.
Choose an Eligible Vendor
Select a vendor through the applicable programme pathway and confirm the system design, price, warranty and installation scope.
Install the System
The selected vendor installs the qualifying grid-connected rooftop solar system according to the applicable technical and programme requirements.
Inspection & Commissioning
Complete the required inspection, meter installation, documentation and commissioning steps with the DISCOM.
CFA Processing
After the required verification and completion information are submitted, the applicable Central Financial Assistance is processed through the programme mechanism.
State-Level Solar Incentives
State-level incentives and rooftop-solar programmes can change frequently. Instead of publishing potentially outdated subsidy amounts, use the relevant State Nodal Agency or DISCOM as the source of truth.
Note: The organisations below are examples of where current information can be verified. Their inclusion does not guarantee that an additional state subsidy is currently available.
| State | Agency / DISCOM | What to verify |
|---|---|---|
| Gujarat | GEDA / GUVNL | Check current rooftop-solar incentives, DISCOM requirements and metering rules. |
| Rajasthan | RRECL / DISCOM | Verify current state programmes and applicable residential incentives. |
| Madhya Pradesh | MPUVN / DISCOM | Check current state and DISCOM rooftop-solar programmes. |
| Uttar Pradesh | UPNEDA / DISCOM | Verify current state incentives and application requirements. |
| Haryana | HAREDA / DISCOM | Check current residential rooftop-solar programmes and utility requirements. |
| Punjab | PEDA / DISCOM | Verify current state incentives and interaction with central CFA. |
| Kerala | ANERT / KSEBL | Check current rooftop-solar programmes, metering rules and DISCOM requirements. |
| Odisha | OREDA / DISCOM | Verify current rooftop-solar incentives and application process. |
| Karnataka | KREDL / DISCOM | Check current Karnataka rooftop-solar programmes and DISCOM rules. |
What May Not Be Covered
Do not assume every component or cost of a solar project receives central financial assistance.
What About Community Solar and VNM?
Community solar and Virtual Net Metering are different from a conventional residential rooftop installation. A consumer participating in a remote solar project should not assume that the residential rooftop CFA automatically applies to that arrangement.
Why the distinction matters
- • Residential rooftop CFA is associated with qualifying rooftop installations.
- • Community solar uses a remote generation facility.
- • Virtual Net Metering uses a separate credit-allocation mechanism.
- • Eligibility depends on the applicable programme and state regulatory framework.
If you are considering community solar instead of a rooftop installation, compare the subscription economics, applicable electricity-credit rules and regulatory requirements rather than treating the residential rooftop CFA as an assumed discount.
Official sources
Regulations, programme rules and financial assistance can change. Verify the current position with the responsible authority before relying on an estimate or entering an agreement.
Last regulatory review: September 2026
MNRE
Grid Connected Rooftop Solar Programme
Official programme documents, guidelines, amendments and clarifications for rooftop solar.
View official source →Government of India
PM Surya Ghar National Portal
The official application and implementation portal for eligible residential rooftop solar consumers.
View official source →OREDA
Grid-connected rooftop solar in Odisha
Odisha nodal-agency information on rooftop solar, net metering and the state implementation pathway.
View official source →MNRE / PIB
Subsidy support and low-interest financing
The 28 July 2026 Government statement supporting the time-specific rooftop financing information on this page.
View official source →
Common Solar Subsidy Mistakes
⚠Using an Ineligible Vendor
Before signing a contract, verify that the vendor and installation pathway satisfy the current programme and DISCOM requirements.
⚠Treating CFA as an Instant Discount
Understand the payment and CFA-processing mechanism before signing a contract. Do not assume the subsidy is an immediate reduction from every vendor quotation.
⚠Ignoring DISCOM Approval
Rooftop solar and metering require utility processes. Confirm feasibility, metering and commissioning requirements before installation.
⚠Assuming State Incentives Are Automatic
A state programme may have separate eligibility criteria, budgets, portals or deadlines. Verify the current rules independently.
⚠Using Old Subsidy Figures
Government schemes can be amended. Always use the latest MNRE notification, National Portal information and DISCOM instructions when calculating project economics.
⚠Comparing Quotes Before Checking the Subsidy Path
A low headline price is not necessarily the lowest final cost. Confirm what the quotation includes, which components are eligible, and how CFA is expected to be processed.
Shared & Community Models
What about subsidy for shared & community solar?
Most subsidy communication in India — including PM Surya Ghar — is written for rooftop systems installed at a consumer's own premises. Shared and community solar work differently, so it helps to separate the two cases.
Rooftop (EPC) route
A vendor installs panels on your roof, and central financial assistance is claimed per kW of installed capacity — subject to scheme eligibility, registered-vendor requirements and DISCOM processes.
Shared / community route
Generation happens at an off-site project. Participants hold a share in that project rather than owning rooftop capacity, so individual rooftop-subsidy rules generally do not apply automatically.
Where assistance shows up
If any capital assistance applies to a shared project, it accrues at the project level and may be reflected in overall program economics — not as a direct payment to an individual participant.
What governs your outcome
Allocation methodology, bill-credit treatment and applicable state regulations — which is why estimates should always be treated as illustrative until your specific project and agreement are confirmed.
Bottom line: if you cannot install rooftop panels, do not let subsidy headlines drive the decision alone. Evaluate managed solar on its own bill-credit economics — and verify current rules for your state and consumer category.
See how Lumifly treats subsidy as an estimate input in the calculator methodology, and review the applicable billing framework in the Virtual Net Metering guide.
Next Steps
Find out whether solar makes sense for you.
Estimate your solar requirement, understand your eligibility and explore your options before committing to an installation.
