Solar Energy Incentives & Rebates (2025)

PM Surya Ghar: Muft Bijli Yojana

Launched on February 29, 2024, with an outlay of over Rs 75,000 crore, this flagship scheme aims to empower residential consumers by installing rooftop solar systems. Under the initiative, eligible households receive a direct subsidy—transferred to their bank accounts—thus reducing the effective installation cost.

• Subsidy Structure:
  • Up to 2 kW systems: 60% subsidy (e.g., approximately Rs 30,000 per kW)
  • Systems between 2–3 kW: Subsidy is adjusted so that a 3-kW system may receive up to Rs 78,000
  • For capacities above 3 kW, a fixed subsidy of Rs 78,000 is applicable

     

• Eligibility:
  • The applicant must be an Indian citizen owning a residential property with a suitable rooftop and a valid electricity connection
  • The scheme excludes households that have previously availed of any other solar subsidy

     

• Application Process:
  • Consumers register on the National Portal (www.pmsuryaghar.gov.in) by selecting their state and corresponding electricity distribution company (DISCOM)
  • A technical feasibility study is conducted by the DISCOM, followed by vendor-led installation
  • After installation, the system is inspected, a commissioning certificate is issued, and subsidy funds are credited within 30 days

     

National Rooftop Solar Scheme and Other Incentives

Alongside PM Surya Ghar, the Ministry of New and Renewable Energy (MNRE) has streamlined the overall subsidy mechanism for rooftop solar installations across India. Recent enhancements include:

• A 23% Increase in Central Financial Assistance (CFA): Announced in early 2025, this boost aims to further reduce costs and ensure a uniform incentive across states (with few exceptions).

   

• State-Specific Subsidies:
  • States like Jammu, Uttar Pradesh, Assam, and Kerala offer additional financial support, although these schemes are often time-bound and dependent on local campaigns.

     

• Ease of Application:
  • The consolidated online platform enables applicants to track every stage—from registration to installation and subsidy disbursement—reducing bureaucratic hurdles and ensuring transparency.