India’s rooftop solar adoption has picked up speed, largely thanks to a much simpler subsidy structure than what existed a couple of years ago. If you’re looking into solar panel subsidy in India right now, most of what you need to know falls under one central scheme.
What Changed
The old state-by-state subsidy percentages have mostly been replaced by the PM Surya Ghar Muft Bijli Yojana, launched in February 2024 to get rooftop solar onto one crore homes by 2027. As of early 2026, the scheme has already crossed 26 lakh installations and disbursed close to ₹18,000 crore in central assistance.
How Much You Actually Get
Under this government solar subsidy in 2026, the amount depends on system size. A 1 kW system gets ₹30,000, a 2 kW system gets ₹60,000, and anything from 3 kW upward caps out at ₹78,000, the maximum central subsidy available. Special category states, including several hill states and union territories, can receive up to ₹1,17,000. On top of the central subsidy, some states add their own top-up. Uttar Pradesh, for instance, offers an extra ₹15,000 per kW, while Bihar and Rajasthan run similar state-level programmes.
Beyond the subsidy, eligible households also get up to 300 units of free electricity every month, depending on their system size and consumption.
Who Can Apply
The scheme is limited to residential rooftop systems that are grid-connected and use net metering. Commercial and industrial properties don’t qualify for this particular subsidy, though they have separate benefits like accelerated depreciation. Systems also need to use ALMM-compliant modules, meaning they’re from an approved list of manufacturers, which is worth checking before you finalize an installer.
How to Apply
The entire process runs online through the national portal. You register, upload your electricity bill and ID proof, get technical feasibility clearance from your DISCOM, then choose a vendor from the approved list. Once your system is installed and net metering is set up, you upload the commissioning report and the subsidy gets credited directly to your bank account, usually within 30 to 45 days. The full journey from application to payout typically takes around 90 to 120 days depending on your state.
If the upfront cost still feels like a stretch even after the subsidy, several banks now offer solar-specific loans at subsidised interest rates, which can help bridge the gap.
Getting the subsidy sorted is only half the job; choosing a reliable manufacturer matters just as much. Waaree, India’s largest PV panel manufacturer with over 25.8 GW in manufacturing capacity, offers ALMM-listed panels and end-to-end support, making the entire subsidy and installation process considerably easier to navigate.
