Solar Subsidy In Maharashtra: A Detailed guide?

Your electricity bills are mounting, you’re still counting on the fuel prices to drop, and you’re still waiting for the perfect day when power consumption won’t be an issue – what if we tell you that that scenario already exists?  

Lakhs and lakhs of homes in India are already enjoying free electricity from the Sun by installing a solar system. The state of Maharashtra is no different. Solar installation is at its peak and the state government is offering many incentives to homeowners and housing societies in the form of a solar subsidy in Maharashtra.

Would you like to learn all the details about solar subsidy in Maharashtra? If so, we have curated this guide, especially for you. 

Dive in and decode the solar subsidy in Maharashtra like never before.

Overview of solar subsidy in Maharashtra for Rooftop solar Installations 

The solar rooftop subsidy in Maharashtra is offered against the L1 rates (discovered rates). 

According to the rooftop solar policy in Maharashtra, homeowners get a subsidy amount according to the benchmarks listed below:

  • – 40% of L1 prices for a solar system between 1 KW to 3 KW.
  • – 20% of L1 prices for a solar system above 3 KW and up to 10 KW.

What does the L1 rate mean?

Different empanelled solar vendors place their bids in their respective state’s solar subsidy tender to get the maximum allocation rights out of the solar installation capacity awarded to the State. The vendor that quotes the least price wins the maximum allocation. 

The lowest winning bid is the L1 price for the state. It is also known as the discovered price. 

The conditions to avail of solar subsidy in Maharashtra 2022 include:

  • – The panels should be made in India. Made-in-India panels are also known as DCR panels. As of now, only polycrystalline solar panels are made in the country. 
  • – The subsidy is applicable for on-grid connections only. 
  • – According to the rooftop solar yojana Maharashtra, a subsidy is offered only for residential installations and housing societies. It’s not offered for commercial purposes.

Maharashtra solar rooftop price for individual homes without a subsidy

Solar panels do not have a fixed price. There are different modules, different manufacturers, and different technologies used to make solar panels. Hence, the price varies greatly. 

Still, a general thumb rule states that every KW of a solar system might cost between Rs. 45,000 to Rs. 70,000 without a subsidy.

L1 rates in Maharashtra according to the solar rooftop policy, Maharashtra

As we mentioned, the price of a solar system is not fixed. But the L1 rates are. If you know the L1 price, you’ll be able to get a better idea of the price range of a solar rooftop system, Maharashtra with a subsidy. 

Here are the details. 

L1 rates in Maharashtra without GST:

  • – For 1 KW to 3 KW: Rs. 41,400/KW
  • – Above 3 KW and up to 10 KW: Rs. 39,600/KW

L1 rates in Maharashtra with GST

  • – For 1 KW to 3 KW: Rs. 47,113/KW
  • – Above 3 KW and up to 10 KW: Rs. 45,065/KW

Maharashtra solar rooftop subsidy: what are the benefits of solar subsidy in Maharashtra?

Solar systems are a little expensive. One of the biggest benefits of a subsidy on solar rooftop in Maharashtra is that it makes solar systems more affordable for consumers. 

Customers who want to install DCR (made in India) solar panels up to 10 KW on their rooftops get a subsidy. 

That said, let’s now walk you through the subsidy prices per KW.

Solar system capacityKW-wise subsidy with GST
1 KW40% of Rs. 47,113 = Rs. 18,845
2 KWRs. 18,845 x 2 = Rs. 37,691
3 KWRs. 18,845 x 3 = Rs. 56,536
4 KW40% of Rs. 45,065 = Rs. 18,026
20% of Rs. 45,065 = Rs. 9,073

For the 1st 3 KW = Rs. 18026 x 3 = Rs. 54,078
For the remaining 1 KW = Rs. 9,073

Total = Rs. 63,151
5 KWFor the first 3 KW = Rs. 54,078
For the remaining 2 KW = 9073 x 2 = Rs. 18,146

Total = Rs. 72,224

Rooftop solar system’s price with a solar subsidy in Maharashtra

Now you know the per-KW subsidy price according to the rooftop solar scheme Maharashtra. The solar panel price with solar subsidy in Maharashtra can be calculated accordingly. 

For instance, 

You’re installing a 4 KW solar system worth Rs. 2,80,000. The subsidy amount with GST will be Rs. 63,151. 

So, the solar panel price with subsidy, in this case, would be, Rs. 2,16,849 (2,80,000 – 63,151).

Things to note:

  • – This cost is exclusive of the cost of installation
  • – This cost is exclusive of the cost of the net meter and its testing
  • – This cost is exclusive of any other value-added service that the customer purchases

Subsidy for Small Housing Societies according to Maharashtra solar rooftop policy 

  • – Above 10 KW and up to 100 KW: 20% of Rs. 42,106 = Rs. 8,421/KW
  • – Above 100 KW and up to 500 KW: 20% of Rs. 40,838 = Rs. 8,168/KW

Major benefits of installing solar panels (systems) in Maharashtra

There are many benefits of installing solar panels (systems) in Maharashtra. The most important ones are as follows:

  1. The carbon emissions are reduced. 
  2. Consumers save a lot of money on electricity bills.

How to apply for a solar subsidy in Maharashtra?

  • – Visit the MSEDCL website.
  • – Find out the list of empanelled vendors.
  • – Pick SolarSquare.
  • – Discuss details with SolarSquare Energy (SSE).
  • – An officer from MSEDCL will visit your house, and ensure that all the dues have been cleared and that there’s adequate space for the installation. 
  • – After the clearance, the SSE team will start the process of installation. 
  • – You pay the money to SSE for the system minus the subsidy amount.
  • – Upon installation, the commissioning of the net meter will begin. 
  • – Once installed and commissioned, your solar system will become operational. 
  • – The DISCOM will disburse the subsidy directly to SolarSquare.

How to apply for a net meter in Maharashtra?

There are three stages.

Stage 1: From the side of the customer

#1. Submission of application: 

An application form will open. There are 3 steps that you will have to complete for the successful submission of the application:

  1. Submit Application
  2. Make Payment
  3. Select Agency

#2. Payment of (Non-Refundable) Registration charges:

  • – Low Tension Consumers with a sanctioned load or contract demand up to 20 kW have to Rs. 500+GST. After 20 KW,  the customer will have to pay Rs. 100+GST for every 20 kW.
  • – High Tension Consumers have to pay Rs. 5000+GST

#3. Selection of empanelled agency

Stage 2: From the side of the MSEDCL Field officer & the Empanelled Agency

#1. Technical feasibility/Sanction of RTS

  • – A Local field officer will receive an intimation on mobile and NC portal after the empanelled agency will accept the proposal.
  • – A joint visit will be scheduled to check out technical feasibility. 
  • – Based on the visit, the proposal will either be approved or rejected.
  • – The field officer will get a notification of acceptance or rejection on his mobile app.
  • – The geo-coordinates of the consumer site can also be captured using the same app.  
  • – Auto intimation regarding sanction of application is sent to the consumer by SMS and email. 
Stage 3: Activity related to the Consumer 

#1. Metering Specifications:  

  • – Net metering specifications for consumers are made available on the MSEDCL website.
  • – The sanction letter & metering specifications will be system generated for both LT & HT consumers. 
  • – In case of a change in CT-PT specifications, the same will be informed by the concerned sub-division office for LT consumers. 
  • – For HT consumers, metering specifications will be communicated by the local testing division.  
  • – The consumer is required to procure a unidirectional meter at the generation end and a bi-directional meter for Net Metering as per relevant MERC regulations. 

Please note: For the RTS Phase-II scheme, the cost of the generation meter is borne by an empanelled agency. The consumer has to bear only the cost of the NET meter and its testing charges.

  • – The installation company has to install the solar system within 6 months.
  • – The SDO has to carry out a joint inspection to rule out any possible discrepancy.
  • – The SDO has to verify the compliance and permit commissioning of RTS and the metering system.
  • – The SDO has to record the initial readings after which meter assignment is fed into the NC Portal.
  • – The SDO has to submit the verified checklist.
  • – The SDO has to provide a certificate for the completion of RTS. 
  • – After the work completion certificate is submitted, the subsidy will be disbursed to the solar installation company.


The state government does not offer a solar subsidy in Maharashtra on a system above 10 KW for residential installations. Besides, the subsidy incentive will be stopped after India hits the milestone target of 4 GW. 

Hence, it’s the best time to install a solar system and get financial assistance from the state government. 


Q. What is the average cost of grid-connected rooftop solar systems in Maharashtra?

The cost difference is substantial. It depends on the type of solar panels, inverters, system’s capacity, and even the choice of installation company and the value-added services (such as AMC) purchased.

On average, the cost range could be:

1 KW – Rs. 45,000 to Rs. 70,000

2 KW – Rs. 90,000 to Rs. 1,40,000

3 KW – Rs. 1,35,000 to Rs. 2,10,000

4 KW – Rs. 1,80,000 to Rs. 2,80,000

5 KW – Rs. 2,25,000 to Rs. 3,50,000

Q. Why does the government offer a solar subsidy in Maharashtra on residential rooftop solar systems?

The Indian government has a target of generating 4 GW of solar electricity from residential rooftop installation. 

Hence, in order to make solar installation popular and to make it more affordable, the government offers a rooftop solar subsidy in Maharashtra. 

Q. What are the conditions to avail of a solar subsidy in Maharashtra?

Here are a few things that have to be kept in mind when planning to install a solar system so that you get solar subsidy in Maharashtra: 

  • – The subsidy, as of now, is offered on ALMM-approved DCR solar panels only.
  • – The subsidy for residential installation is capped at 10 KW.
  • – Only on-grid systems are eligible for subsidy.