Solar Subsidy in India 2026 — State-Wise Complete Guide
India offers solar subsidies at two levels — central government (PM Surya Ghar) and state-specific schemes. In many states, you can stack both subsidies to bring your installation cost down by 50-70%. Here's the definitive 2026 guide.
Central Government Subsidy (Available in All States)
| System Size | Subsidy | CFA Rate (2026) |
|---|---|---|
| Up to 1 kW | ₹30,000 | ₹18,000/kWp |
| 2 kW | ₹60,000 | ₹18,000/kWp |
| 3 kW and above | ₹78,000 (max) | Capped at ₹78,000 |
The CFA (Central Financial Assistance) rate was increased by 23% in January 2026 from ₹14,588/kWp to ₹18,000/kWp — your subsidy amount increased.
Maharashtra — Ghar Ghar Solar + SMART Solar
- Ghar Ghar Solar Campaign: Ultra-low upfront cost — households pay only ~1/3 in installments, rest through electricity bill savings
- SMART Solar Scheme: Additional 40% subsidy for low-consumption homes (under 100 units/month), BPL, SC/ST households
- MSEDCL group net metering for housing societies — multiple flats share one solar installation
- MERC allows net metering capacities up to 5 MW for commercial consumers
- PM KUSUM allocation: ₹1,154 crore (250% increase vs previous year)
Total subsidy for eligible Maharashtra consumers: Central ₹78,000 + State up to 40% of system cost
Gujarat — SURYA Gujarat Yojana
- SURYA Gujarat (Surya Urja Rooftop Yojana): Additional ₹40,000 state subsidy on top of central PM Surya Ghar subsidy
- Gujarat is India's #1 state: 11+ lakh installations, 6,412 MW rooftop solar
- Gujarat Integrated Renewable Energy Policy-2025 launched
- Kisan Suryoday Yojana: Daytime agricultural power — ₹2,175 crore allocated
- Waiver on electricity duty for solar power plants
- GEDA manages all applications — geda.gujarat.gov.in
Total subsidy (Gujarat): Central ₹78,000 + SURYA Gujarat ₹40,000 = up to ₹1,18,000
Rajasthan — India's Solar Powerhouse
- Rajasthan has highest solar radiation in India — best ROI for solar investment
- Residential subsidy: 40% for systems up to 3 kW; 20% for 3–10 kW
- First state to announce a "green budget" — ₹400 crore for PM KUSUM solar pumps
- ₹559 crore from state fund for solar-powered minor irrigation projects
- RVUNL manages state solar applications
Karnataka — DSPV Policy & Virtual Net Metering
- Karnataka overhauled rooftop solar as DSPV (Distributed Solar PV) effective July 1, 2025
- Virtual Net Metering (VNM): Housing societies can share solar generation across multiple flats from one installation (minimum 5 kW)
- BESCOM net metering export rate: ₹3.57/unit — one of India's best rates
- Component B solar pump support: 50% state subsidy (farmer pays only 20%); ₹752 crore for 40,000 pumps
- Residential subsidy up to 40% via KREDL
Delhi — ₹2/Unit Generation Incentive
- PM Surya Ghar central subsidy available (₹78,000 max)
- DERC generation incentive: Additional ₹2 per unit generated for 5 years
- For a 3 kW system generating 4,500 units/year — extra ₹9,000/year
- Free net meter installation by BSES/Tata Power Delhi
- Delhi's solar target: 4.5 GW by 2027
Uttar Pradesh — UPNEDA Additional Subsidy
- PM Surya Ghar central subsidy available
- UPNEDA additional state subsidy: ₹15,000/kW, capped at ₹30,000 for residential consumers
- Can be combined with central PM Surya Ghar subsidy
- ₹509 crore for PM KUSUM in FY2025-26
- Apply via UPNEDA portal: upneda.org.in
Madhya Pradesh
- 40% subsidy on solar rooftops via PM Surya Ghar
- PM KUSUM Component A & C SOPs launched — 10 GW decentralized solar target
- MPUVNL manages applications: mpuvnl.nic.in
- Strong push for government building solarization
How to Get Maximum Subsidy — Stacking Strategy
- Apply on pmsuryaghar.gov.in for central subsidy first
- Simultaneously apply on your state renewable energy agency website for state subsidy
- Use a single MNRE-empanelled installer who handles both applications
- Submit combined documents to avoid duplication
- Ensure your bank account is Aadhaar-linked (mandatory for DBT)
Important: ALMM Compliance from June 2026
From June 2026, only solar modules on the ALMM (Approved List of Models and Manufacturers) List-II are eligible for government subsidies. Ensure your installer uses ALMM-listed panels — non-compliant panels will not qualify for PM Surya Ghar or state subsidies.