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Is there any subsidy on solar panels in India?
What’s the solar panel price in India with government subsidy?
How do I get a solar panel subsidy in India?
We are often asked these questions. In fact, so often, that we decided to make this detailed post on the ins and outs of a solar panel subsidy in India.
The rooftop solar subsidy scheme in India goes by the name, PM Surya Ghar Muft Bijli Yojana. Under this scheme, homeowners can claim a subsidy between Rs. 30,000 and Rs. 78,000, depending upon the size of the on-grid rooftop solar system being installed. And are there any conditions for claiming this solar panel subsidy in India? Absolutely! Stay tuned until the very end of this post to get all the answers.
But first, let’s start with the basics – what is the PM Surya Ghar Muft Bijli Yojana, and how much subsidy does it promise?
What is the PM Surya Ghar Muft Bijli Yojana?
The PM Surya Ghar Muft Bijli Yojana is a solar scheme which was announced on January 22, 2024 and approved by PM Narendra Modi on February 29, 2024.
| Did you know? Under the PM Surya Ghar Muft Bijli Yojana, the Indian government has pledged to solarize 1 crore Indian homes! |
Before this scheme, the subsidy process was very complicated. Different states had different subsidy offerings and conditions.
To simplify things, the government unified the amount of subsidy on installing solar panels in India. As a result, all states now have the same subsidy.
Here are the central government’s subsidy details:
- Solar panel subsidy in India for 1-2 kW solar systems: Rs. 30,000 per kilowatt
- Solar panel subsidy in India for additional capacity over and above 2 kW up to 3 kW: Rs. 18,000
- Solar panel subsidy in India for 3 kW or higher capacity: Rs. 78,000
Based on the details above, we’ve broken down the exact amount of solar panel government subsidy in India for different capacity solar systems. Have a look!
| Solar System Size | Solar Panel System Subsidy in India |
| 1 kW | Rs. 30,000 |
| 2 kW | Rs. 60,000 |
| 3 kW | Rs. 78,000 |
| 4 kW | Rs. 78,000 |
| 5 kW | Rs. 78,000 |
| 10 kW | Rs. 78,000 |
Please note: The Indian government has capped the subsidy for homeowners at a maximum of Rs. 78,000. This means that any system that’s 3 kW or higher gets a fixed relaxation of Rs. 78,000.
➡️ But, if you’re from UP, the state government offers an additional subsidy on top of the subsidy offered by the central government.
Here are the state subsidy details for UP homeowners:
- State subsidy for 1-2 kW solar systems: Rs. 15,000/ kW
- State subsidy for systems >=2 kW: Rs. 30,000
Here’s a snapshot of the total subsidy (central subsidy + state subsidy) for UP residents:
| Solar System Size | State Subsidy | Central Subsidy | Total Subsidy in UP |
| 1 kW | Rs. 15,000 | Rs. 30,000 | Rs. 45,000 |
| 2 kW | Rs. 30,000 | Rs. 60,000 | Rs. 90,000 |
| 3 kW | Rs. 30,000 | Rs. 78,000 | Rs. 1,08,000 |
| 4 kW | Rs. 30,000 | Rs. 78,000 | Rs. 1,08,000 |
| 5 kW | Rs. 30,000 | Rs. 78,000 | Rs. 1,08,000 |
| 10 kW | Rs. 30,000 | Rs. 78,000 | Rs. 1,08,000 |
Please note: The UP state government caps the maximum state subsidy amount to Rs. 30,000.
Who Can Get a Subsidy on Installing Solar Panels in India?
All eligible homeowners can benefit from the solar panel government subsidy in India. But what’s that eligibility criteria, you ask? We have spilled all the details below.
If you fulfill the conditions below, you can rightfully claim a subsidy under the PM Surya Ghar Muft Bijli Yojana:
- You own a home with a rooftop
- Your solar panels are Made-in-India DCR Modules
- You have a valid electricity connection in your name
- You are an Indian citizen
- You have never availed of a solar subsidy for up to 3 kW systems
Documents Required to Get Solar Panel System Subsidy in India
Now that eligibility is out of the equation, the documents are next.
The good news is that you don’t need a plethora of documents to get a solar panel subsidy in India. If you have the following documents, you’re good to go:
- Proof of Identity (Aadhaar or PAN)
- Proof of Ownership (like property papers)
- Your most recent electricity bill
What is the Solar Panel Price in India With Subsidy?
While the central government’s subsidy remains the same across the country, the cost of installing an on-grid rooftop solar system varies from city to city.
In the coming sections, we’ve revealed:
- The solar panel price in India with and without a subsidy, based on the system capacity
- Explained the reasons behind the cost variation
Without further ado, let’s get started!
2 kW Solar Panel Price in India With Subsidy
| Did you know? A 2 kW solar system in India can generate 2,800-2,900 units of electricity every year! |
Here’s a breakdown of the 2 kW solar panel price in India with subsidy and without one:
| State | *2 kW Solar Plant Price Before Subsidy (Starting Price – Indicative for Base Variant) as of 29th April 2025 | Solar Panel Subsidy in India for a 2 kW System | *2 kW Solar Panel Price in India With Subsidy (Starting Price – Indicative for Base Variant) as of 29th April 2025 |
| Pune, Maharashtra | Rs. ~ 1,75,000 | Rs. 60,000 | Rs. ~ 1,15,000 |
| Bhopal, Madhya Pradesh | Rs. ~ 1,80,000 | Rs. 60,000 | Rs. ~ 1,20,000 |
| Lucknow, Uttar Pradesh | Rs. ~ 1,80,000 | Rs. 90,000 | Rs. ~ 90,000 |
| Jaipur, Rajasthan | Rs. ~ 1,90,000 | Rs. 60,000 | Rs. ~ 1,30,000 |
| Ahmedabad, Gujarat | Rs. ~ 1,75,000 | Rs. 60,000 | Rs. ~ 1,15,000 |
| Bengaluru, Karnataka | Rs. ~ 2,00,000 | Rs. 60,000 | Rs. ~ 1,40,000 |
| Hyderabad, Telangana | Rs. ~ 1,75,000 | Rs. 60,000 | Rs. ~ 1,15,000 |
| Delhi | Rs. ~ 1,90,000 | Rs. 60,000 | Rs. ~ 1,30,000 |
| Chennai, Tamil Nadu | Rs. ~ 2,05,000 | Rs. 60,000 | Rs. ~ 1,45,000 |
Please Note: *These prices are indicative as of 29th April 2025, for SolarSquare Blue 6ft variant. The final price for a 2 kW solar system in India depends on your city, DISCOM charges, product variant opted for, panel type, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc.
3 kW Solar Panel Price in India With Subsidy
| Here’s a fun fact: A 3 kW solar system in India can generate 4,200-4,350 units of electricity every year, and power a 1.5-ton AC! |
Here’s the 3 kW solar panel price in India with subsidy and without one:
| City | *3 kW Solar System Price Before Subsidy (Starting Price – Indicative for Base Variant) as of 29th April 2025 | Solar Panel Subsidy in India for a 3 kW System | *3 kW Solar Panel Price in India for Home With Subsidy (Starting Price – Indicative for Base Variant) as of 29th April 2025 |
| Pune, Maharashtra | Rs. ~ 2,05,000 | Rs. 78,000 | Rs. ~ 1,27,000 |
| Bhopal, Madhya Pradesh | Rs. ~ 2,10,000 | Rs. 78,000 | Rs. ~ 1,32,000 |
| Lucknow, Uttar Pradesh | Rs. ~ 2,10,000 | Rs. 1,08,000 | Rs. ~ 1,02,000 |
| Jaipur, Rajasthan | Rs. ~ 2,25,000 | Rs. 78,000 | Rs. ~ 1,47,000 |
| Ahmedabad, Gujarat | Rs. ~ 2,05,000 | Rs. 78,000 | Rs. ~ 1,27,000 |
| Bengaluru, Karnataka | Rs. ~ 2,35,000 | Rs. 78,000 | Rs. ~ 1,57,000 |
| Hyderabad, Telangana | Rs. ~ 2,10,000 | Rs. 78,000 | Rs. ~ 1,32,000 |
| Delhi | Rs. ~ 2,20,000 | Rs. 78,000 | Rs. ~ 1,42,000 |
| Chennai, Tamil Nadu | Rs. ~ 2,35,000 | Rs. 78,000 | Rs. ~ 1,57,000 |
Please note: The above-mentioned 3 kW rooftop solar price is indicative as of 29th April 2025, for SolarSquare Blue 6ft variant. The final price for a 3kW solar system in India depends on your city, DISCOM charges, product variant opted for, panel type, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc.
4 kW Solar Panel Price in India With Subsidy
| Did you know? When maintained properly, a 4 kW solar system can generate 5,600 to 5,800 units of electricity yearly. |
Let’s break down the 4 kW solar panel price in India with subsidy and without one:
| City | *4 kW Solar System Price Before Subsidy (Starting Price – Indicative for Base Variant) as of 29th April 2025 | Solar Panel Subsidy in India for a 4 kW System | *4 kW Solar Panel Price in India With Subsidy (Starting Price – Indicative for Base Variant) as of 29th April 2025 |
| Pune, Maharashtra | Rs. ~ 2,50,000 | Rs. 78,000 | Rs. ~ 1,72,000 |
| Bhopal, Madhya Pradesh | Rs. ~ 2,55,000 | Rs. 78,000 | Rs. ~ 1,77,000 |
| Lucknow, Uttar Pradesh | Rs. ~ 2,55,000 | Rs. 1,08,000 | Rs. ~ 1,47,000 |
| Jaipur, Rajasthan | Rs. ~ 2,75,000 | Rs. 78,000 | Rs. ~ 1,97,000 |
| Ahmedabad, Gujarat | Rs. ~ 2,50,000 | Rs. 78,000 | Rs. ~ 1,72,000 |
| Bengaluru, Karnataka | Rs. ~ 2,85,000 | Rs. 78,000 | Rs. ~ 2,07,000 |
| Hyderabad, Telangana | Rs. ~ 2,65,000 | Rs. 78,000 | Rs. ~ 1,87,000 |
| Delhi | Rs. ~ 2,70,000 | Rs. 78,000 | Rs. ~ 1,92,000 |
| Chennai, Tamil Nadu | Rs. ~ 2,90,000 | Rs. 78,000 | Rs. ~ 2,12,000 |
Please note: The above-mentioned 4 kW rooftop solar price is indicative as of 29th April 2025, for SolarSquare Blue 6ft variant. The final price for a 4 kW solar system in India depends on your city, DISCOM charges, product variant opted for, panel type, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc.
5 kW Solar Panel Price in India With Subsidy
| Guess what? A 5 kW solar system is powerful enough to support 2 ACs (1.5-ton each) and produce 7,000 to 7,250 units of electricity every year. |
Here’s a rundown of the 5 kW solar panel price in India with subsidy and without one:
| State | *5 kW Solar System Price Before Subsidy (Starting Price – Indicative for Base Variant) as of 29th April 2025 | Solar Panel Subsidy in India for a 5 kW System | *5 kW Solar Panel Price in India With Subsidy (Starting Price – Indicative for Base Variant) as of 29th April 2025 |
| Pune, Maharashtra | Rs. ~ 3,00,000 | Rs. 78,000 | Rs. ~ 2,22,000 |
| Bhopal, Madhya Pradesh | Rs. ~ 3,10,000 | Rs. 78,000 | Rs. ~ 2,32,000 |
| Lucknow, Uttar Pradesh | Rs. ~ 3,05,000 | Rs. 1,08,000 | Rs. ~ 1,97,000 |
| Jaipur, Rajasthan | Rs. ~ 3,20,000 | Rs. 78,000 | Rs. ~ 2,42,000 |
| Ahmedabad, Gujarat | Rs. ~ 2,95,000 | Rs. 78,000 | Rs. ~ 2,17,000 |
| Bengaluru, Karnataka | Rs. ~ 3,70,000 | Rs. 78,000 | Rs. ~ 2,92,000 |
| Hyderabad, Telangana | Rs. ~ 3,40,000 | Rs. 78,000 | Rs. ~ 2,62,000 |
| Delhi | Rs. ~ 3,15,000 | Rs. 78,000 | Rs. ~ 2,37,000 |
| Chennai, Tamil Nadu | Rs. ~ 3,65,000 | Rs. 78,000 | Rs. ~ 2,87,000 |
Please Note: *These prices are indicative as of 29th April 2025, for SolarSquare Blue 6ft variant. The final price of a 5 kW solar system in India depends on your city, DISCOM charges, product variant opted for, panel type, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc.
10 kW Solar Panel Price in India With Subsidy
| Did you know? A 10 kW solar system in India can generate 14,000 to 14,500 units of electricity every year, and easily support 2-3 ACs in a 4-5 BHK home. |
Here’s a tabulated snapshot of the 10 kW solar panel price in India with subsidy and without one:
| State | *10 kW Solar System Price Before Subsidy (Starting Price – Indicative for Base Variant) as of 29th April 2025 | Solar Panel Subsidy in India for a 10 kW System | *10 kW Solar Panel Price in India With Subsidy (Starting Price – Indicative for Base Variant) as of 29th April 2025 |
| Pune, Maharashtra | Rs. ~ 5,75,000 | Rs. 78,000 | Rs. ~ 4,97,000 |
| Bhopal, Madhya Pradesh | Rs. ~ 5,80,000 | Rs. 78,000 | Rs. ~ 5,02,000 |
| Lucknow, Uttar Pradesh | Rs. ~ 5,80,000 | Rs. 1,08,000 | Rs. ~ 4,72,000 |
| Jaipur, Rajasthan | Rs. ~ 6,20,000 | Rs. 78,000 | Rs. ~ 5,42,000 |
| Ahmedabad, Gujarat | Rs. ~ 5,70,000 | Rs. 78,000 | Rs. ~ 4,92,000 |
| Bengaluru, Karnataka | Rs. ~ 6,40,000 | Rs. 78,000 | Rs. ~ 5,62,000 |
| Hyderabad, Telangana | Rs. ~ 6,00,000 | Rs. 78,000 | Rs. ~ 5,22,000 |
| Delhi | Rs. ~ 5,90,000 | Rs. 78,000 | Rs. ~ 5,12,000 |
| Chennai, Tamil Nadu | Rs. ~ 6,35,000 | Rs. 78,000 | Rs. ~ 5,57,000 |
*Please note: These prices are indicative as of 29th April 2025, for SolarSquare Blue 6ft variant. The final cost of a 10 kW solar system in India depends on your city, DISCOM charges, product variant opted for, panel type, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc.
How to Get Subsidy on Solar Panels in India?
Applying for a solar panel system subsidy in India is pretty straightforward. Here’s a step-by-step breakdown of the entire process:
- Portal Access: Visit the National Portal for Rooftop Solar and click ‘Apply for Rooftop Solar’.
- Register Your Account: Select your state, district, and DISCOM. Then, enter your ‘Customer Account Number’.
- Complete Installation Form: Provide personal details (like your name and gender) and your latest electricity bill information.
- Upload Required Documents: Submit Proof of Identity, Proof of Ownership, and your most recent electricity bill.
- Submit Bank Details: After uploading the documents, enter your bank account information and upload a cancelled cheque on the portal.
- Choose an Approved Vendor: Select a DISCOM‑approved solar installer like SolarSquare to install rooftop solar at your home.
- Net Meter Installation: Once installation is complete, your DISCOM will fit a bi‑directional net‑meter to track imported and exported units.
- Obtain Commissioning Certificate: Your DISCOM issues a Solar Commissioning Certificate confirming the system is live.
- Apply for Subsidy Claim: Log back into your customer account on the portal and submit your Commissioning Certificate to claim the subsidy.
- Receive Subsidy: The approved subsidy amount is transferred to your bank account within 30 days of claim approval.
Check out this video for further details to avail a subsidy
What Are the Objectives of Solar Panel Government Subsidy in India?
The primary objective behind offering homeowners a subsidy on installing solar panels in India is the Indian government’s zeal to solarize 1 crore homes across the country by March 31, 2026.
That said, here are some other primary motives why the government offers a subsidy:
- Combat climate change and ultimately reduce air pollution
- Reduce reliance on fossil fuels
- Promote clean, sustainable energy
- Make electricity cheaper for end consumers
What Are the Benefits of Solar Panel Subsidy in India?
Now that you understand why the government offers a subsidy, you must also understand the urgency of accepting that financial assistance.
When we say that the government’s objective is to solarize 1 crore homes under the PM Surya Ghar Muft Bijli Yojana, we also imply that once that quota is met, the subsidy might not be offered altogether.
That said, here are some benefits you’ll reap by going solar:
- You’ll install solar at cheaper rates by availing a solar panel subsidy in India
- You’ll become truly energy independent
- Once the initial investment breaks even in 3-5 years, you’ll practically get free electricity throughout the lifespan of a solar system (and well-maintained systems last for as long as 25 years in total).
- You’ll play a crucial role in reducing pollution since every 1 kW system equals planting 39 full-grown trees.
➡️ But wait, there’s more – you’ll save lakhs of rupees by installing solar. We’re not kidding.
Let’s give you a demonstration!
Suppose you live in Nagpur and plan to install a 5 kW on-grid rooftop solar system at your home.
Here are a few factors to consider:
- Assumably, the electricity tariff in your city is currently Rs. 15.2 per unit
- The electricity rates increase by 3-6% every year
- A solar system degrades annually by 1%
- A well-maintained solar system lasts for at least 25 years
- The cost of the initial investment breaks even in 3-5 years
Based on all the factors listed above, installing a 5 kW solar system in Nagpur today will save a whopping Rs. 34.4 lakhs in 25 years!
From a different city? Check how much you can save by going solar – use SolarSquare’s Solar Power Savings Calculator to get an estimate now.
Why Choose SolarSquare As Your Solar Vendor?
Kyunki, mehangi bijli se muft bijli tak ka safar aasaan banaata hai, SolarSquare!
We’re India’s first and only solar company to offer a money-back guarantee at Rs. 8 per unit if we fail to deliver the promised power generation! This means your investment now has a guarantee.
Here are some other ways in which we support your journey and make solar installation easier for you.
- You get a swift installation in just 8 hours.
- We offer a minimum 45 maintenance visits over 5 years for deep cleaning and preventive checks.
- Our HILTI AirTight chemical anchoring protects your roof. And if a leak still appears, we offer a Rs. 1 lakh leakage-free guarantee for 1 year.
- Our systems are equipped with the IIT-Bombay-approved cyclone-proof mounting structure, the WindPro Mount™, that can withstand up to 170 km/h wind speeds.
- We offer a zero-investment loan, which is approved in 1-2 days, and you can choose a repayment plan from 3 to 60 months to suit your budget and cash flow.
Conclusion
The final cost of installing rooftop solar is substantially reduced when you get a solar panel subsidy in India, which ranges between Rs. 30,000 and Rs. 78,000. The amount you get depends on the size of the solar system you install at your home.
However, you must also remember that the solar panel government subsidy in India comes with a limit. Once the government achieves its motto of solarizing 1 crore homes in the country, the subsidy may not be offered at all. So, why the holdup now? Book a free solar consultation with SolarSquare today. Let us handle the nitty-gritty of going solar while you settle back to enjoy free electricity for the next 25 years of your life.
PM Surya Ghar Muft Bijli Yojana FAQs
Q. Is there any subsidy on solar panels in India?
A. If you plan to install an on-grid rooftop solar system and use it for residential purposes only, then yes. The Indian government offers eligible homeowners a subsidy (between Rs. 30,000 and Rs. 78,000) under the PM Surya Ghar Muft Bijli Yojana.
Q. What is the cost of a 5 kW solar panel in India with subsidy?
A. The estimated starting price of a 5 kW solar system in India with subsidy ranges from Rs. ~ 1,97,000* to Rs. ~ 2,92,000*.
*Please note: These prices are indicative as of 29th April 2025, for SolarSquare Blue 6ft variant. The final cost of a 5 kW solar system in India depends on your city, DISCOM charges, product variant opted for, panel type, inverter type, mounting structure height, type of after-sales service, savings guarantee, roof height, etc.
Q. What is the time period for solar subsidy?
A. According to the MNRE official website, the government has extended the time period until March 31, 2026. The subsidy will no longer be available once the government reaches its target of solarizing 1 crore homes.
Q. Can I get solar panels for free in India?
A. No. While the solar panel subsidy reduces the cost of installation, you still have to pay the remainder. Beware of any schemes that claim to sell solar panels for free. Solar systems are sophisticated machines, and any claims of selling them for free are most likely scams.
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