Solar Panel Subsidy in India 2026: Schemes & Benefits

Solar Panel Subsidy in India 2026: Government Schemes, Eligibility & Benefits
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Last updated at :
Feb 26, 2026
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Residential Solar Panels in India: Installation, Cost & Benefits
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With electricity prices rising annually and India making significant strides towards renewable energy, installing solar panels has become a prudent financial and environmental decision. To make solar energy affordable for households, the Government of India offers attractive solar panel subsidy schemes for residential users.

In this detailed guide by Solnce Energy, we explain everything about the solar panel subsidy in India 2026, including government schemes, eligibility criteria, subsidy rates, benefits, and how to apply for the government subsidy for solar panels.

What Is Solar Panel Subsidy?

A solar panel subsidy is a government incentive that lowers the upfront cost of installing a rooftop solar system. The subsidy is credited to the beneficiary’s bank account after installation and inspection.

The main goal of the solar subsidy is to:

  • Promote rooftop solar adoption.
  • Reduce electricity bills.
  • Encourage clean and renewable energy.
  • Help India achieve its solar capacity targets.

Solar Panel Subsidy in India: Government Schemes 2026

The solar panel subsidy in India is offered through the MNRE Rooftop Solar Programme Phase II via the National Rooftop Solar Portal.

Key Highlights of the Government Solar Subsidy

  • Applicable only for residential rooftop solar systems.
  • Only on-grid solar systems are eligible.
  • Installation must be done by an MNRE-empaneled vendor.
  • The subsidy amount is directly transferred to the consumer.

Commercial and industrial consumers are not eligible for capital subsidy under this scheme.

Latest Solar System Subsidy Rates in India (2026)

Government Subsidy for Solar Panels – Residential

Up to 3 kW

40% subsidy

3 kW to 10 kW

78,000/-

Above 10 kW

No subsidy

Maximum subsidy is capped at 10 kW per household.

Example: Solar Panel Installation Subsidy Calculation

If you install a 5-kW rooftop solar system:

  • Approximate system cost: ₹3,00,000
  • Subsidy calculation:


    • 3 kW × 40%
    • 2 kW × 20%

  • Total solar subsidy received: ₹78,000
  • The effective system cost reduces significantly

This makes solar panel installation subsidies one of the biggest advantages for homeowners.

Who Is Eligible for a solar panel subsidy in India?

You are eligible for a government solar subsidy if:

  • You are a residential property owner
  • The solar system is grid-connected
  • Net metering is approved by DISCOM
  • System is installed by an approved vendor
  • Solar components meet MNRE standards

  • Solar subsidy is not applicable for:
    • Off-grid solar systems
    • Battery-only systems
    • Commercial C industrial projects

Documents Required for Solar System Subsidy

To claim the solar system subsidy, the following documents are required:

  • Aadhaar card
  • Electricity bill
  • Property ownership proof
  • Cancelled cheque
  • Bank account details
  • Net metering approval
  • Installation photographs

Solnce Energy manages the complete subsidy documentation process.

How to Apply for Solar Panel Subsidy in India

Step 1: Choose an MNRE-Approved Installer

Select a trusted company like Solnce Energy to ensure eligibility and smooth processing.

Step 2: Apply on the National Rooftop Solar Portal

The subsidy application is submitted online before installation.

Step 3: Install Solar Panels

System installation is done as per MNRE guidelines.

Step 4: Inspection s Net Metering

DISCOM inspects the system and installs the net meter.

Step 5: Subsidy Credit

The government subsidy for solar panels is credited directly to your bank account.

Benefits of Solar Panel Subsidy

Lower Installation Cost

Solar subsidy reduces upfront investment by up to 40%.

Faster Payback Period

Lower cost means quicker return on investment.

Clean Energy Adoption

Encourages eco-friendly energy usage.

Higher Solar Adoption

Makes rooftop solar accessible to more households.

Solar Subsidy vs Net Metering

Many people confuse solar subsidies with net metering, but both are different:

  • Solar Panel Subsidy: Reduces system installation cost
  • Net Metering: Reduces monthly electricity bills

Together, they maximize the financial benefits of rooftop solar.

State-Wise Solar Subsidy in India

While MNRE provides a central subsidy, some states offer:

  • Faster approvals
  • Additional incentives
  • Simplified net metering processes

States with strong rooftop solar adoption include Gujarat, Maharashtra, Rajasthan, Tamil Nadu, and Uttar Pradesh.

Why Choose Solnce Energy for Solar Panel Subsidy?

  • MNRE-compliant installations
  • End-to-end solar subsidy support
  • High-quality solar panels C inverters
  • Transparent pricing
  • Dedicated post-installation service

With Solnce Energy, your solar subsidy journey is simple, transparent, and hassle-free.

Is Solar Panel Subsidy Worth It in 2026?

Yes, absolutely. With:

  • Rising electricity tariffs
  • Strong government support
  • Long lifespan of solar panels

The solar panel subsidy in India 2026 makes rooftop solar one of the most cost-effective investments for Indian homes.

Conclusion: Make the Most of Government Solar Subsidy

Installing rooftop solar with the benefit of government subsidy for solar panels is a smart move toward energy savings and sustainability. With proper guidance and expert execution, you can enjoy decades of clean power at minimal cost.

Go solar with Solnce Energy and unlock maximum solar subsidy benefits.

Recent Blogs
Residential Solar Panels in India: Cost & Benefits Guide
Residential Solar Panels in India: Cost & Benefits Guide

Learn about residential solar panels in India, including installation process, system cost, government subsidy, savings, and long-term benefits for homes.

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