Top Solar Panel Government Subsidies to Avail in India
India’s push towards clean and renewable energy has been one of the most ambitious in the world. With rising electricity costs and growing environmental concerns, solar power has emerged as a sustainable solution for both households and businesses. Recognising its importance, the Government of India offers several subsidies, schemes, and incentives to encourage solar adoption.
These subsidies not only make solar installations more affordable but also help in achieving the country’s renewable energy targets under the National Solar Mission. In this article, we’ll explore the top five solar panel government subsidies in India that you can avail in 2025 for maximum benefits.
1. PM Surya Ghar Muft Bijli Yojana (2025)
Launched in 2024, the PM Surya Ghar Muft Bijli Yojana is one of the most talked-about solar initiatives in India. Under this scheme, the government aims to provide up to 300 units of free electricity per month to households that install rooftop solar panels.
Key Highlights:
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Target Group: Residential households across India.
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Financial Benefit: Subsidy covering up to 40% of installation costs for solar rooftop systems up to 3 kW capacity.
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Free Electricity: Up to 300 units per month without additional charges.
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Application: Available through the National Portal for Rooftop Solar (solarrooftop.gov.in).
Why It’s Beneficial:
This scheme drastically reduces monthly electricity bills, often bringing them down to zero. Over a span of years, the savings add up to a substantial amount while also providing a sense of energy independence.
2. Solar Rooftop Subsidy Scheme under MNRE
The Ministry of New and Renewable Energy (MNRE) has been offering rooftop solar subsidies for years, supporting both residential and institutional sectors. The scheme offers central financial assistance (CFA) to reduce upfront costs.
Key Highlights:
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For Residential Consumers:
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Up to 3 kW system: 40% subsidy on benchmark cost.
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3–10 kW system: 40% subsidy for the first 3 kW + 20% for the remaining capacity.
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Eligibility: Consumers must connect their system to the grid and use approved vendors/installers.
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Availability: Implemented through state DISCOMs.
Why It’s Beneficial:
With the MNRE subsidy, homeowners can reduce installation costs significantly. This makes high-quality solar panels more accessible, ensuring faster return on investment (ROI).
3. KUSUM Solar Yojana (PM-KUSUM)
Kusum Solar Yojana is designed to promote solar energy in the agricultural sector. It helps farmers install solar pumps and grid-connected renewable power plants.
Key Highlights:
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Target Group: Farmers, rural landowners, and agricultural workers.
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Subsidy:
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Up to 60% subsidy for standalone solar pumps.
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Additional incentives for grid-connected renewable plants.
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Components:
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Installation of solar pumps.
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Solarisation of existing pumps.
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Setting up decentralised power plants.
Why It’s Beneficial:
Farmers save on diesel or grid power costs, and excess power can be sold to DISCOMs for additional income. This is a win-win for both rural development and green energy expansion.
4. State-Specific Solar Subsidy Programs
In addition to central subsidies, many states in India offer their own solar subsidy programs to encourage adoption. These vary in terms of financial support, eligibility, and capacity limits.
Examples:
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Gujarat: Offers up to 40% subsidy for residential rooftop systems up to 3 kW and 20% for 3–10 kW.
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Maharashtra: Provides subsidies through the MEDA program for both rural and urban areas.
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Kerala: Kerala State Electricity Board (KSEB) offers subsidies under the Soura program.
Why It’s Beneficial:
State subsidies can be availed alongside MNRE subsidies, making solar panels even more affordable. Consumers should check their state’s renewable energy department or DISCOM for the latest updates.
5. Accelerated Depreciation (AD) Benefit for Businesses
While not a direct subsidy, Accelerated Depreciation is a tax incentive available for businesses installing solar energy systems. It allows companies to depreciate up to 40% of the asset value in the first year, reducing taxable income.
Key Highlights:
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Target Group: Commercial and industrial consumers.
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Eligibility: Businesses with taxable income that install and operate their own solar systems.
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Financial Advantage: Reduced tax liability and quicker capital recovery.
Why It’s Beneficial:
For commercial entities, AD helps recover the initial investment much faster while enjoying long-term energy savings. This incentive is particularly attractive for high-energy-consuming industries.
How to Apply for Solar Subsidies in India
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Identify the Right Scheme: Choose based on whether you are a homeowner, farmer, or business owner.
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Check Eligibility: Visit official government portals like solarrooftop.gov.in or your state’s energy department site.
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Select an Approved Vendor: Only empanelled vendors are eligible for subsidy claims.
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Submit the Application: Apply online with required documents (ID proof, electricity bill, installation details).
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Inspection & Approval: DISCOM officials verify the installation before subsidy disbursement.
Tips to Maximise Subsidy Benefits
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Combine Central and State Subsidies (if allowed) to reduce costs further.
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Choose High-Efficiency Panels: More energy output per unit cost ensures better ROI.
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Maintain Your Solar System: Regular cleaning and servicing keep performance optimal.
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Stay Updated: Subsidy rates and policies change frequently, so check official portals often.
Conclusion
The Indian government’s commitment to solar energy is opening up affordable, clean power to millions of households and businesses. Whether you’re a homeowner seeking reduced electricity bills, a farmer aiming for energy independence, or a business looking to cut operational costs, these top five solar panel subsidies offer a golden opportunity.
By combining the right schemes, working with approved vendors, and choosing efficient solar technology, you can maximize savings and contribute to a greener, more sustainable India.
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