SMART Solar Scheme: Maharashtra’s Big Push for Affordable Solar Power

The Maharashtra government has taken a significant step toward energy self-reliance and sustainability with the launch of a new rooftop solar subsidy program. Under this initiative, economically weaker households with low monthly electricity consumption will be able to install solar panels at highly subsidized rates — in some cases, paying as little as 5% of the total cost. The scheme, officially named the Swayampurna Maharashtra Residential Roof Top (SMART) Solar Scheme, aims to empower citizens, reduce their electricity bills to nearly zero, and contribute to the state’s clean energy mission.

This progressive decision aligns with India’s larger goal of promoting renewable energy and reducing dependency on fossil fuels. Maharashtra, one of the largest electricity-consuming states, is taking a people-centric approach by ensuring that even the poorest households can benefit from solar energy.

Massive Subsidies for Low-Power Consumers

The newly announced scheme is designed to encourage low-income households—especially those below the poverty line (BPL) and from Scheduled Castes (SC) and Scheduled Tribes (ST)—to adopt rooftop solar power.

The government’s Government Resolution (GR) specifies a 90%–95% subsidy for eligible consumers with monthly power consumption below 100 units. This will make solar energy nearly free for thousands of economically weaker families across Maharashtra.

Here’s how the subsidy will work for different categories of consumers:

This structure ensures that every consumer, regardless of their category, receives substantial financial assistance to install rooftop solar panels.

For a 1 kW solar system, which can generate approximately 120 units per month, a household consuming under 100 units will not only become self-reliant in terms of energy but could also end up with zero or negative electricity bills (if they sell surplus energy back to the grid).

Financial Allocation for the Scheme

To ensure the smooth execution of the SMART Solar Scheme, the Maharashtra government has allocated ₹330 crore for the financial year 2025–26 and ₹325 crore for 2026–27. These funds will be provided through state budgetary grants.

The Maharashtra State Electricity Distribution Company Limited (MSEDCL) will be the implementing agency responsible for the scheme’s rollout. MSEDCL will coordinate with approved solar suppliers and local bodies to ensure timely installation and post-installation maintenance.

This budgetary allocation reflects the government’s strong commitment to building a sustainable energy ecosystem while reducing financial burdens on citizens.

Empowering Economically Weaker Sections

According to the official announcement, at least 5 lakh domestic consumers are expected to benefit in the initial phase of the program. This includes around 1.5 lakh BPL households and 3.5 lakh low-consumption consumers from economically weaker sections of society.

The primary goal is to help these families achieve energy independence. With electricity bills accounting for a significant portion of monthly household expenses, solar power will bring meaningful relief, especially in rural and semi-urban areas.

As MSEDCL Managing Director Lokesh Chandra stated,

“With the low costs involved, electricity becomes almost free for consumers from the economically weaker section of society. They also get an additional source of income through the sale of surplus electricity generated from solar energy after domestic use.”

This model not only saves money but also provides a small but sustainable source of income through net metering, where excess power generated by the rooftop system is exported to the electricity grid.

1kW Solar Panel System: The Ideal Starting Point

The GR highlights that a 1 kW rooftop solar system will be the standard installation under the subsidy scheme.

• Generation Capacity: Approximately 120 units/month, depending on location and sunlight availability.
• System Cost: Around ₹50,000.
• Lifespan: 20–25 years with minimal maintenance.
• Payback Period: 3–4 years (even shorter with subsidies).

The system will not only cater to essential household needs like fans, lights, and basic appliances but will also help users transition towards cleaner energy.

Additionally, suppliers installing these systems will be responsible for maintenance and repairs for five years, ensuring reliability and performance.

Priority to Remote and Underdeveloped Regions

The Maharashtra government has directed that the SMART Solar Scheme be implemented on a priority basis in remote and tribal regions, including:

• Melghat (Amravati district)
• Nandurbar (north Maharashtra)
• Gadchiroli (eastern Maharashtra)

These areas often face power supply challenges due to their difficult terrain and distance from major power grids. By promoting decentralized solar generation, the government aims to reduce power outages, promote rural development, and improve living standards in these regions.

Solar power can play a transformative role in such communities by enabling:

• Continuous power supply for households and schools.
• Support for small businesses and agricultural pumps.
• Reduced dependency on kerosene or diesel generators.

A Step Toward ‘Swayampurna Maharashtra’

The name of the scheme — Swayampurna Maharashtra Residential Roof Top (SMART) Solar Scheme — perfectly captures its vision: creating a self-reliant Maharashtra powered by clean, renewable energy.

This initiative contributes directly to multiple long-term objectives:

1. Promoting Energy Independence: Encouraging households to generate their own power and reduce dependence on the grid.
2. Reducing Carbon Footprint: Solar energy significantly cuts CO₂ emissions compared to fossil fuels.
3. Lowering Power Subsidy Burden: As more homes shift to solar, the state’s subsidy expenditure on electricity reduces.
4. Supporting India’s Renewable Energy Goals: Maharashtra’s initiative aligns with the central government’s mission to achieve 500 GW of renewable energy capacity by 2030.

Economic and Environmental Benefits

The benefits of this solar subsidy extend far beyond cost savings:

• Economic Upliftment: Reduced electricity costs mean more disposable income for low-income families.
• Employment Generation: Solar installation, maintenance, and distribution will create new green jobs across Maharashtra.
• Grid Stability: Distributed solar generation reduces the load on traditional power plants and transmission networks.
• Cleaner Environment: Widespread solar adoption will help reduce air pollution and promote public health.

With nearly 300 sunny days a year, Maharashtra has excellent potential for solar power generation. The state’s total rooftop solar capacity could exceed 10 GW in the coming years if such policies continue.

How to Apply for the SMART Solar Scheme

The Maharashtra government is expected to roll out an online application process for eligible consumers through the official MSEDCL portal. The process will likely include:

1. Eligibility Verification: Applicants must have monthly power consumption below 100 units.
2. Category Confirmation: Applicants need to provide proof of BPL, SC, or ST status (if applicable).
3. Site Assessment: MSEDCL or empaneled vendors will inspect the rooftop suitability.
4. Installation & Commissioning: Approved vendors will install the solar system and ensure it is grid-connected.
5. Post-Installation Maintenance: Vendors will handle all repairs for five years as per GR conditions.

Detailed guidelines and timelines are expected to be released soon by MSEDCL.

Conclusion: A Visionary Move Toward a Greener Maharashtra

The Maharashtra Solar Panel Subsidy under the SMART Solar Scheme marks a historic milestone in the state’s renewable energy journey. By covering up to 95% of installation costs for the most vulnerable sections of society, the government has ensured that clean energy is not just a privilege for the wealthy but a right for all.

This initiative promises to light up lakhs of homes, particularly in rural and tribal areas, bringing prosperity, self-reliance, and sustainability to Maharashtra’s energy landscape.

As Chief Minister Devendra Fadnavis emphasized, this scheme represents the government’s commitment to inclusive growth and environmental responsibility. With this effort, Maharashtra moves one step closer to becoming “Swayampurna” — self-reliant, sustainable, and solar-powered.