Solar Panel Price and Subsidy in Mumbai 2026

As electricity costs continue to rise across India, more homeowners in metropolitan cities such as Mumbai are exploring rooftop solar installations as a cost-saving and eco-friendly solution. Installing solar panels not only reduces monthly electricity bills but also contributes to a greener environment by harnessing abundant sunlight throughout the year. This comprehensive article covers solar panel prices in Mumbai, the solar panel subsidy available, and how you can maximize financial benefits through government schemes such as PM Surya Ghar Muft Bijli Yojana and state-level incentives.

Why Go Solar in Mumbai?

Mumbai, though a coastal city with high humidity and occasional cloud cover, still receives enough sunshine throughout most of the year to make solar power a viable investment for residential rooftops. With escalating electricity tariffs and frequent grid dependency, installing solar photovoltaic (PV) systems is an increasingly attractive option for homeowners.

Key Benefits of Rooftop Solar

• Significant electricity bill savings
• Low maintenance costs with long life span (20–25 years)
• Reduced carbon footprint
• Increase in property value
• Eligibility for net metering (sell surplus power back to the grid)

Understanding Solar Panel Prices in Mumbai

The cost of a solar panel system depends on its capacity, quality of components (solar panels, inverters, mounting hardware), and installation charges. While prices vary across suppliers and brands, here is an indicative range for residential rooftop solar systems in Mumbai:

Typical Solar PV System Price Range (Before Subsidy)

These prices include the cost of solar panels, inverter, cables, mounting structures, installation, testing, and commissioning. Actual price may vary based on brand, warranty, panel efficiency, and labor charges.

Solar Panel Subsidy in Mumbai

To support residential adoption of solar energy, the Central Government of India and the Maharashtra State Government offer subsidies that significantly lower the upfront cost of rooftop solar installations.

Central Subsidy – PM Surya Ghar (Muft Bijli Yojana)

The PM Surya Ghar Muft Bijli Yojana is a flagship central solar subsidy scheme aimed at promoting rooftop solar systems. Under this scheme, homeowners can avail of Central Financial Assistance (CFA) on solar PV installations. Typical central subsidies include:

• ₹30,000 for 1 kW system
• ₹60,000 for 2 kW system
• ₹78,000 for 3 kW and above systems (cap)

These subsidies are directly credited to the beneficiary’s bank account after the system is installed and verified.

Maharashtra State Subsidy (SMART Scheme)

In 2025, the Maharashtra Government, through the Swayampurna Maharashtra Residential Roof Top (SMART) Solar Scheme, announced enhanced subsidies specifically targeting low-income households. Under this scheme:

• 90% – 95% subsidy for Below Poverty Line (BPL), SC, and ST households with monthly electricity consumption below 100 units
• For a 1 kW system (~120 units generation), typical cost ~₹50,000. Central government contributes ₹30,000, and the state offers additional subsidy:
  • ₹17,500 for BPL consumers (rest payable: ~₹2,500)
  • ₹45,000 total subsidy for SC/ST consumers (rest payable: ~₹5,000)
  • ₹40,000 subsidy for general category with low usage (rest payable: ~₹10,000)

This initiative aims to make solar installation almost free for economically weaker households and cut monthly electricity bills drastically.

Solar Subsidy Mumbai – Subsidy Table (2025)

Below is a simple subsidy table to help you estimate the financial support available for different system sizes when installing rooftop solar in Mumbai:

Solar Subsidy Table – Mumbai (Central + State)

*State subsidy amounts vary based on eligibility category (BPL, SC/ST, or general low consumption).
Note: State subsidy is particularly high for low-income households under the SMART scheme.

Steps to Avail Solar Subsidy in Mumbai

Step 1: Check Eligibility

• Residential owner with proof of property ownership
• Aadhaar number, latest electricity bill
• Bank account linked with Aadhaar for direct credit of subsidy

Step 2: Register on Official Portals

• Register on national solar rooftop portal (e.g. pmsuryaghar.gov.in)
• Select your state as Maharashtra and utility provider (e.g., MSEDCL, BEST, Tata Power)

Step 3: Choose an Empaneled Vendor

• Pick an MNRE / DISCOM empaneled solar vendor in Mumbai
• Get a formal quote and sign an agreement

Step 4: Installation & Inspection

• Vendor installs system and requests inspection from DISCOM
• After successful commissioning and net metering setup, subsidy is processed

Step 5: Subsidy Disbursal

• Central and state subsidies are credited directly to your bank account once verification is complete

Financial Impact & Payback Period

Solar installations can deliver excellent returns on investment, especially with subsidies in place:

• Reduced electricity bills: Homes that install solar panels often see up to 80–100% reduction in grid electricity purchases.
• Net Metering Benefits: Excess solar power fed back to the grid earns credit or payment from utility.
• Payback Period: With subsidies and energy savings, most residential solar systems in Mumbai recover costs in 3–5 years, depending on usage and system size.
• Long-term Savings: Solar systems typically last 20–25 years, offering substantial lifetime savings beyond payback.

Tips to Maximize Solar Savings

• Install the right system size based on your consumption profile.
• Leverage net metering for excess energy export.
• Choose quality components (mono-PERC, high efficiency panels) to enhance productivity.
• Ensure proper roof orientation for optimal sunlight exposure.
• Keep panels clean and maintain them periodically for peak performance.

Conclusion

Investing in rooftop solar in Mumbai in 2025 is both economically and environmentally beneficial. With attractive subsidies from the central and Maharashtra state government, even low-income households can afford clean energy systems. Whether you are a middle-class homeowner or a consumer under the BPL category, the right solar solution with optimized subsidies can help you cut electricity bills or even achieve zero monthly utility costs.