Government Subsidy for Solar Panels in India (2025)

The Indian government is taking big steps to promote clean and renewable energy. One of the most popular ways it does this is through government subsidies for solar panels. These subsidies help reduce the cost for homeowners, businesses, and farmers to install solar panels. If you're planning about going solar, now is the best time to take advantage of these government subsidies.

In this article, we’ll explain everything you need to know about solar panel subsidies in India, including popular schemes like PM Surya Ghar Muft Bijli Yojana, KUSUM Solar Yojana, and more. We’ll also touch on how solar panel companies in India and solar module manufacturers in India are helping drive this green transformation.

Why is the Government Offering Subsidies for Solar Panels?

The government’s goal is to reduce use of coal and oil, and provide energy security, especially in rural areas. By offering financial assistance under different free solar panel yojana schemes, the government aims to:

• Promote clean and sustainable energy sources
• Reduce electricity bills for consumers
• Empower farmers and rural communities
• Boost domestic manufacturing of solar modules
  

Top Indian Government Subsidy for Solar Panels

1. PM Surya Ghar Muft Bijli Yojana

The Muft Bijli Yojana, launched in 2024, aims to install rooftop solar panels in 10 million homes across India. Under this scheme:

• Households can get up to 300 units of free electricity each & every month
• A subsidy of up to ₹78,000 is provided for installing 3 kW solar rooftop system
• The application process is easy. Just visit the official portal: https://pmsuryaghar.gov.in

Subsidy Rates (Approximate):

This pradhanmantri solar yojana is a game changer, especially for middle- and low-income families who want to adopt clean energy.

2. KUSUM Solar Yojana (Kisan Urja Suraksha evam Utthaan Mahabhiyan):

This scheme is meant for farmers to install solar-powered pumps and solar grids for agricultural use.
By using kusum solar pump yojana, farmers can not only irrigate their fields efficiently but also contribute to the national grid.

Component:

• Component A: Set up 10,000 MW of decentralized, grid-connected solar plants on barren/farmland.
• Component B: Install 20 lakh standalone solar pumps for off-grid areas.
• Component C: Convert 15 lakh grid-connected agricultural pumps to solar power.

Benefits:

• Up to 60% subsidy on solar pumps
• 30% loan assistance
• Farmers only pay 10% of the total cost

Target:

• Replace diesel pumps
• Support irrigation through clean energy
• Empower rural communities
  
  

3. Grid-Connected Rooftop Solar Programme (MNRE)

This Scheme is run by the Ministry of New and Renewable Energy (MNRE), and supports residential, institutional, and social sector solar installations.

• Target Audience: Residential and institutional sectors

• Subsidy Details:

• 40% subsidy for systems up to 3 kW

• A 20% subsidy is available for solar systems between 3 kW and 10 kW.

• Only empaneled vendors and MNRE-approved models qualify.

• Application: Through the National Portal for Rooftop Solar or respective state DISCOM portals

4. State-Specific Subsidies

In addition to central schemes, many Indian states offer their own solar subsidies under the Grid-Connected Rooftop Programme or unique state missions. Examples include:

• Uttar Pradesh: Additional ₹15,000 per kW subsidy, up to ₹30,000, for rooftop installations
• Maharashtra: Subsidies aligned with central schemes, with specific post-subsidy costs detailed for various system capacities
• Delhi: Provides capital subsidy over and above MNRE's 40%.

Each state’s energy department or DISCOM provides specific details regarding eligibility and subsidy amount.

5. Production Linked Incentive (PLI) Scheme for Solar PV Modules

To boost domestic manufacturing and reduce dependency on imports, the government introduced the PLI Scheme for High-Efficiency Solar PV Modules.

• Objective: Support the local production of high-efficiency solar PV modules
• Incentives: Financial incentives to manufacturers based on sales, promoting the use of locally produced solar components

6. Special Subsidies for Specific Regions

Additional 10% subsidies are available for residents in:

• Northeastern states (e.g., Assam, Sikkim)
• Hilly regions (e.g., Himachal Pradesh, Uttarakhand)
• Union Territories (e.g., Jammu & Kashmir, Ladakh)
• Island territories (e.g., Andaman & Nicobar Islands)

How to Avail Government Subsidy for Solar Panels

Here’s a step-by-step guide to avail the govt subsidy for solar panels:

• Visit the National Portal: Go to https://pmsuryaghar.gov.in
• Register with your electricity consumer number and mobile
• Submit the application and select a vendor from the approved list
• Install the system using approved vendors and components
• Submit installation photos, net-metering approval, and other documentation
• Your subsidy will be directly credited to your bank account

This simple process is aimed at ensuring transparency and ease of access for all citizens.

Role of Solar Panel Companies and Manufacturers in India

Government subsidies alone aren’t enough. The success of these schemes also depends on the quality and affordability of products supplied by solar panel companies in India. These firms not only contribute to the "Make in India" initiative but also offer high-quality modules that comply with MNRE standards.

Top solar module manufacturers in India such as:

• Bluebird Solar
• Tata Power Solar
• Adani Solar
• Waaree Energies
• Vikram Solar
  

Benefits of Using Solar Panels with Subsidy Support

• Lower Electricity Bills: Save up to 90% on your monthly power bills
• Quick ROI: With subsidies, you can recover your investment in just 3–4 years
• Environment Friendly: Reduce your carbon footprint significantly
• Energy Independence: Reduce dependency on the grid
• Increase Property Value: Solar Rooftop systems add to your home’s value
• Support from Reliable Solar Companies: Better service, warranties, and after-sales support
  

Conclusion

The Indian government is giving great support for solar energy, so this is the best time to switch to solar. Whether you’re a homeowner, business, or farmer, you can significantly reduce costs by taking advantage of these free solar panel yojana schemes. Thanks to the efforts of reliable solar module manufacturers in India, adopting solar power has never been easier or more affordable.