Solar Energy-9: Want to install solar panels? How much subsidy is available? What is the process?

Solar Energy Series – Story 9: India is making rapid strides in the solar energy sector. Many people are installing solar panels to meet their household electricity needs. A major reason for this is the financial assistance provided by the government for installing these systems. Both central and state governments offer subsidies worth thousands of rupees, significantly reducing the cost of installation for the consumer. In some places, the subsidy covers up to 60% of the cost, leaving the consumer to bear only 40%.

So, in this ninth story of our solar energy and solar panel series, let us address some questions from our readers. They have asked: "I want to install solar panels; how much subsidy is available? What is the process in different states? Please also explain the PM Surya Ghar Yojana." Let’s find out.

How much subsidy does the Central Government provide?

A subsidy of ₹30,000 is provided for installing a 1 kW system.
A subsidy of ₹60,000 is provided for installing a 2 kW system.
A maximum subsidy of ₹78,000 is provided for installing a system of 3 kW or higher capacity. The subsidy amount does not increase beyond this limit, regardless of how much the capacity exceeds 3 kW.

This subsidy is credited directly to your bank account. Under the PM Surya Ghar Yojana, the subsidy amount is uniform across India, though some states may offer additional subsidies.

What is the additional state subsidy in these states?

If you live in a flat or an apartment, where and how can you install solar panels? Let’s hear from the experts.

As per 2026 regulations, some states are offering additional solar subsidies over and above the central government's subsidy. These include UP, Bihar, and Haryana. However, states like Madhya Pradesh and Punjab are not offering any significant state-level subsidies.

. The Uttar Pradesh (UP) government offers a solar subsidy ranging from a minimum of ₹15,000 to a maximum of ₹30,000. This can be availed in addition to the central government subsidy. In UP, one can receive an additional ₹15,000 for a 1-kilowatt system and up to a maximum of ₹30,000 for a system of 3 kilowatts or more.

. In Haryana, general households receive an additional solar subsidy of up to ₹10,000 per kilowatt, though the maximum subsidy here is capped at ₹20,000. Meanwhile, poor/Antyodaya families can receive a subsidy of up to ₹25,000 per kW.

. The Bihar government is also providing additional state subsidies of ₹15,000 (for 1 kW), ₹30,000 (for 2 kW), and ₹45,000 (for 3 kW). Combining this with the central government subsidy offers significant benefits to the public.

. Currently, the Madhya Pradesh government is generally not providing any major additional subsidy beyond the central government's subsidy.

. Similarly, the Punjab government is not providing any additional state-level subsidy beyond the central subsidy. However, state government subsidy policies are subject to change from time to time.

Is the process for obtaining the subsidy the same in all states?
Yes, the process for availing the solar subsidy is the same across all states. Everything is handled through the national portal (pmsuryaghar.gov.in). While states may offer additional subsidies, the application process, installation procedure, and method for claiming the central subsidy remain uniform nationwide.

Understand the entire process step-by-step:
First, check your electricity bill to determine your household's monthly unit consumption; this helps you decide the capacity (in kilowatts) of the system to install.

Next, measure the available space on your rooftop. Generally, a 3-kilowatt system requires approximately 300–400 square meters of open roof space.

Keep your Aadhaar-linked bank account details and mobile number ready.
To apply online, visit the website https://pmsuryaghar.gov.in.
Click on "Apply for Rooftop Solar."

Register by entering your state, DISCOM (electricity distribution company), consumer number, and mobile number. Log in using the OTP received on your phone and fill out the form (entering details such as name, address, electricity connection information, etc.).

Upload the required documents, such as your Aadhaar card, electricity bill, bank passbook/cheque, proof of property ownership, a photograph of the roof, etc.

Your application is first sent to the DISCOM for mandatory approval. Subsequently, they will visit your premises to conduct a roof survey and assess feasibility.
Select a vendor from the MNRE-approved government list available on the portal. Once this step is complete, the installation process begins.

How is the installation carried out?
. The vendor will visit your home to install the solar panels; this process may take 1 to 3 days.
. Get a net meter (bi-directional meter) installed so you can track the import and export of electricity units.
. Next comes the inspection and subsidy phase.
. DISCOM officials will visit your home to conduct an inspection.

. Once all the work is completed, enter your bank details on the portal.
. The subsidy is credited to your account within 15–30 days (though it can sometimes take 30–60 days).