Solar Panel Subsidy in India 2026: Schemes, Slabs and Benefits
Last updated at : Aug 13, 2026
India has quietly become one of the most rewarding places in the world to put solar on your roof — not just because of the sunshine, but because of the financial support behind it. In 2026, a homeowner can recover a large share of installation costs through central subsidies, and in some states, a little more. Here is the full picture of how solar subsidies work across India today.
The main scheme behind India's solar subsidy
The backbone of residential solar support is the PM Surya Ghar Muft Bijli Yojana, delivered through the National Rooftop Solar Portal under the Ministry of New and Renewable Energy (MNRE). It provides Central Financial Assistance directly to households that install grid-connected rooftop systems.
This single national framework replaced the older, more fragmented incentives and made the process more predictable: one portal, one application, one subsidy credited to your bank account after commissioning.
How the subsidy is calculated
The central subsidy is based on system capacity, with a hard cap. The figures below are approximate for 2026 — the portal carries the official numbers, and rules can change, so confirm before you sign anything.
| System Capacity | Central Subsidy (Approx.) |
|---|---|
| Up to 1 kW | Rs 30,000 |
| Up to 2 kW | Rs 60,000 |
| 3 kW | Rs 78,000 |
| Above 3 kW | Rs 78,000 (capped) |
The breakdown is Rs 30,000 per kW for the first two kilowatts and Rs 18,000 for the third. Anything above 3 kW receives no additional central subsidy, so 3 kW is the value sweet spot for typical homes.
State top-ups: where India gets even more generous
Several states add their own incentive on top of the central amount. The exact figures and availability shift over time, but as a general rule:
- Gujarat has been among the most active states, channelling support through GEDA alongside the central scheme.
- Rajasthan, with its 300-plus sunny days a year, runs the national programme via RRECL and has offered additional benefits at various points.
Because state schemes open, close and revise frequently, the only reliable way to know your stackable benefit is to check what is live in your district at the time you apply. Our team tracks this for you.
Who is eligible?
To claim a residential subsidy in India, you generally need to:
- Own a residential property (or have authority over the roof).
- Hold a valid electricity connection with your DISCOM.
- Install a grid-connected system — off-grid and battery-only setups are excluded.
- Use an MNRE-approved, portal-registered vendor.
- Obtain net-metering approval.
A worked example
Imagine a 5 kW system priced around Rs 3,00,000. Even though the system is larger than 3 kW, the central subsidy is capped at roughly Rs 78,000. That still meaningfully lowers your effective cost, and the larger system covers heavier consumption — useful for homes running ACs, pumps or EV charging. Most installations of this type pay back within a few years and then deliver near-free power for the rest of the panels' 25-plus-year life.
For more on sizing and ownership, see residential solar, and browse other guides on our solar blog.
What is not covered
- Off-grid systems and battery-only setups receive no subsidy under this programme.
- Capacity above the 3 kW central cap gets no extra central support (though state benefits may differ).
- Installations by unregistered vendors can be disqualified.
How Solnce helps
The subsidy is generous, but the paperwork — feasibility, registration, net metering, inspection, payout — is where most homeowners get stuck. Solnce handles all of it. As a registered vendor we confirm your eligibility, design a system that maximises your subsidy-to-savings ratio, file and track your application, and make sure your subsidy actually lands in your account. Prefer to spread the cost? We can pair your subsidy with affordable solar loans.
To see your exact subsidy, net cost and payback for your home, get a free quote and we'll put it all on one clear page.
