2026 Government Solar Subsidy in India Eligibility Criteria and Application Process in India

Along with worries about climate change, solar energy presents a clean and economical option. Subsidies for solar energy: • Lower the initial installation costs • Increase investment returns • Promote widespread uptake in both urban and rural areas of India • Back national goals for renewable energy The government intends to reach a rooftop solar capacity of 40,000 MW by March 31, 2026, under the Grid-Connected Rooftop Solar Programme (Phase II). In order to accomplish this ambitious target, considerable financial incentives and simplified application procedures have been implemented.

1. Users in Residence (Main Beneficiaries) Residential rooftop consumers are the main target of the 2026 solar subsidy. Any Indian citizen who has a valid electricity connection and owns rooftop space can apply for the subsidy, as long as the system is grid-connected. Key Eligibility Criteria: ✔ Must reside in India ✔ Must possess or legally control rooftop space ✔ Must have a valid electricity connection in your name from DISCOM ✔ Must use MNRE-approved vendors and BIS (Bureau of Indian Standards) certified equipment for solar installation Important Note: Under this scheme, the central solar subsidy is only available for residential systems, meaning that commercial and industrial consumers do not qualify. Structure of Subsidies in 2026 With the PM Surya Ghar Muft Bijli Yojana (Rooftop Solar Scheme), the government offers direct subsidies that depend on the capacity of your solar system Residential Subsidy Guide System Capability Grant Sum Up to 2 kW, the cost is ₹30,000 for each kW 2–3 kW: ₹18,000 for each kW Max Subsidy ₹78,000 total Clarification: • When you set up a system of up to 2 kW, you receive ₹30,000 for every 1 kW. • For a range of 2 to 3 kW, the amount you receive is ₹18,000 for each additional kW. • The upper limit for the subsidy for systems exceeding 3 kW is ₹78,000. This arrangement guarantees enhanced backing for smaller residential systems, as they are most affected economically.

It is now mostly online and more efficient to apply for your solar subsidy. The process is simple: Step 1: Select a Certified Solar Vendor Select an installer that has MNRE approval and is empanelled with your state DISCOM. The subsidy is only available for installations carried out by these approved vendors. Step 2: Go to the National Solar Rooftop Portal Visit the official rooftop solar portal — usually pmsuryaghar.gov.in or solarrooftop.gov.in and choose “Apply for Rooftop Solar in Bhopal”. Step 3: Sign up and enter your details It will be necessary for you to provide the following information: ✔ Your electricity consumer number ✔ Your mobile number and email address ✔ Your personal details along with your property address ✔ Specifications of your roof Step 4: Upload Necessary Documents Upload scanned versions of all documents, including Aadhaar, electricity bill, bank account details, and property proof. Step 5: Choose System Capacity and Vendor Select the size of solar system you want (e.g. 3 kW) and your approved vendor from the provided list. Step 6: Verification by DISCOM The local DISCOM will check feasibility. In some states, systems of up to 10 kW can utilize fast-track approval processes that do not require a technical feasibility study. Step 7: Installation Your vendor installs the solar panels once approved. All panels and inverters must comply with BIS certification and safety standards. Step 8: Review & Net Metering Once installed, the item is physically inspected. At this point, you also submit an application for net metering, allowing excess solar energy to reduce future electricity costs. Step 9: Disbursal of Subsidy Once all aspects are confirmed and the system is put into operation, the grant will be directly transferred to your bank account via DBT (Direct Benefit Transfer), typically within 30 to 60 days.

Solar systems that are already in place or expansions of these, as well as systems that have not undergone a subsidy application process, cannot receive a subsidy. Support from central subsidies is limited to capacities of up to 3 kW. For larger systems, there is no additional subsidy, but you can take advantage of net metering to lower your bills. Industrial & Commercial Systems Although these installations usually do not qualify for rooftop solar subsidies, they can still take advantage of tax incentives and accelerated depreciation under various policies that are not part of this scheme. Your Potential Savings The subsidy makes it possible for the cost of installing a 3 kW rooftop solar system, which usually ranges from ₹1.8 to ₹2.1 lakh, to be reduced to around ₹1 to ₹1.3 lakh—this depends on the quality of the panels and the installation fees. Moreover, due to net metering, numerous households see their bills decrease by as much as 70–90%.