How much subsidy does it cost to install a solar panel on the roof

What are solar panel subsidies?

Solar panel subsidies in India are financial incentives offered by the government to make this renewable energy source more and more popular. These schemes make solar power systems more affordable for homeowners and lower the upfront installation costs, helping more people adopt clean energy.

How does government subsidy work for solar rooftop systems in India?

The Government of India offers attractive subsidies through schemes like PM Surya Ghar Muft Bijli Yojana and Solar Rooftop Yojana. In 2025, the subsidy rates for residential solar rooftop systems are: Let’s see how much you might actually pay after the government subsidy:

How much state subsidy should be available for solar rooftop systems?

State subsidy of 40% should be available for solar rooftop systems up to 3kW and 20% for solar rooftop systems between 3 kW to 10 kW, which will be installed and commissioned by private residential consumers. If the capacity of the solar rooftop system is beyond 1 kilowatt DC, it can be installed irrespective of a sanctioned load of consumers.

How much does a rooftop solar system cost?

As the Ministry of New and Renewable Energy (MNRE) says, the average cost of a rooftop solar system connected with the grid is 75 per watt. Addressing this problem, the government has introduced a solution of subsidy schemes and other incentives that have encouraged people to transition to solar power for personal or commercial use.