26 Oct, 2026

Solar Rooftop Scheme in India 2026: Subsidy, Eligibility, Loans & How to Apply

A solar rooftop scheme is a government-backed programme that helps households pay for grid-connected solar panels on their roof, through a subsidy, a bank loan or net-metering benefits. The biggest one today is PM Surya Ghar: Muft Bijli Yojana, run by the Government of India, which offers a central subsidy of up to ₹78,000.

This guide covers every central, state and bank scheme in one place, as explained by the experts at Rayzon Solar. Whether you own a bungalow, live in a housing society or are still deciding if rooftop solar makes sense, you will find the scheme that fits, the money you can expect and the steps to follow.

What Is a Solar Rooftop Scheme?

A solar rooftop scheme is government-backed support, such as a subsidy, a loan or net-metering benefits, for installing grid-connected solar panels on your roof.

It works in three simple steps. Your panels generate power during the day. Any surplus goes to the grid through net metering. Your electricity bill drops by the units you generate.

List of Solar Rooftop Schemes in India

Here is the full picture at a glance.

S.No.	Scheme	Who it’s for	Key benefit
1	PM Surya Ghar: Muft Bijli Yojana	Residential households	Up to ₹78,000 subsidy; up to 300 units/month of bill offset
2	MNRE Grid-Connected Rooftop Solar Programme (Phase II)	Residential (Component A) and DISCOMs (Component B)	Central Financial Assistance (CFA); incentives to DISCOMs
3	CFA for Group Housing Societies / RWAs	Apartments, societies	₹18,000/kW for common facilities, up to 500 kW
4	State rooftop schemes and top-up subsidies	Residents of select states	Extra subsidy on top of the central one
5	DISCOM-led tender and empanelled-vendor schemes	Residential, e.g. MSEDCL	Discovered-price installation with 5-year vendor O&M
6	Virtual net metering and RESCO / utility-led models	Flats, rented or shared roofs	Share solar credits without your own rooftop system
7	Bank rooftop solar loans (Indian Bank, Union Bank, SBI and others)	Anyone financing the system	Up to ₹6 lakh, tenure up to 10 years
8	Other PM Surya Ghar components (Model Solar Village, Govt. Buildings, Local Body incentives)	Villages, panchayats, government bodies	Community and institutional solar
9	Related: PM-KUSUM	Farmers (not rooftop)	Solar pumps and farm solar

Which row is yours?

• You own an independent house: start with row 1, then check rows 4 and 7.
• You live in a housing society: row 3 is your starting point, and your RWA will need to lead the application.
• You rent, or your flat has no roof access: row 6 is the realistic route.
• You are a farmer looking for pumps: row 9 is a different programme altogether and is not a rooftop scheme.

PM Surya Ghar Muft Bijli Yojana: The Main Central Scheme

If you own a house, this is probably the scheme you are looking for. It is the largest of the lot, but it is still one scheme among several, so we keep this section focused.

The scheme was launched on 15 February 2024 with a target of 1 crore households. It also plans to train about 1 lakh solar technicians through NIMI, which matters because a subsidy is only useful if there are enough trained people to install systems properly.

Subsidy slabs

System size	Central subsidy
Up to 2 kW	₹30,000 per kW
Additional capacity up to 3 kW	₹18,000 per kW
Above 3 kW	Capped at ₹78,000

In plain terms, a 2 kW system gets ₹60,000, and a 3 kW system gets ₹78,000. Going beyond 3 kW does not raise the subsidy. You can still install a bigger system, but the extra cost is yours.

Which system size suits you?

Monthly Consumption	Suggested Size	Estimated Monthly Generation (kWh)
0 to 150 Units	1.0 to 2.0 kW	120 to 240
150 to 300 Units	2.0 to 3.0 kW	240 to 360
Above 300 Units	3.0 kW and Above	360 and above

A good installer will look at your last 12 months of bills, not just one month, because summer and winter use can be very different. Sizing to your real consumption keeps your net-metering credits sensible and avoids paying for capacity you cannot use.

For the full walkthrough, read our complete PM Surya Ghar Yojana guide :- https://rayzonsolar.com/blog/surya-ghar-yojana-by-rayzon-solar.

Other Central Schemes and Components

PM Surya Ghar gets most of the attention, but it sits alongside other central programmes that matter in specific situations.

1. Cumulative Target & Core Components

• Target: The overall target of the Ministry of New and Renewable Energy (MNRE) is to achieve a cumulative rooftop capacity of 40,000 MW (40 GW).

• Component A & B: Under Phase-II of the scheme Component A deals with CFA/subsidy for residential consumers whereas Component B pays

MNRE Grid-Connected Rooftop Programme. Its objective is 40,000 MW of cumulative rooftop capacity. It has two parts. Component A covers residential subsidy. Component B gives incentives to DISCOMs, the distribution companies, so they have a reason to speed up approvals and net metering. You can apply through two routes:

• National Portal: the subsidy is paid directly to your bank account.
• DISCOM portal: you pay only the balance after the subsidy is adjusted.

The second route suits people who do not want to arrange the full amount upfront. The first gives you more control over which vendor you choose.

Group Housing & RWAs: What the Subsidy Looks Like Now

The logic here still holds: solar on common areas cuts the maintenance bills societies pay for shared infrastructure like lifts, water pumps, and EV chargers. What has changed is how much support you get.

Under the earlier Phase-II programme, Resident Welfare Associations (RWAs) and Group Housing Societies received a 20% subsidy, with a cap of 500 kW.

PM Surya Ghar: Muft Bijli Yojana replaces that percentage with a simple flat rate. Societies now get ₹18,000 per kW for common facilities, up to 500 kW. That makes it much easier to work out your subsidy before you start planning.

Other components include:

• Model Solar Village: a village chosen to become a showcase for solar power.
• Local Bodies incentive: support for municipalities and panchayats that promote rooftop solar.
• Service Charge: a component linked to the service side of the programme.
• Innovative Projects: support for new approaches to rooftop deployment.

Status note: MNRE lists Phase II as valid till 31 March 2026. Check the PM Surya Ghar portal for the current position before you apply.

State-Wise Solar Rooftop Subsidy

State top-ups sit on top of the central subsidy. They are tied to annual budgets, so they change. Treat any number you read online, including in this blog, as a starting point and confirm it with your state agency before you sign anything.

State	Central Subsidy (Max)	Additional State Top-Up / Extra Benefit	Nodal Agency
Goa	₹78,000	Up to 50% extra on benchmark setup costs.	GEDA
Uttar Pradesh	₹78,000	₹15,000 per kW extra (capped at ₹30,000 max).	UPNEDA
Delhi	₹78,000	₹10,000 per kW extra + cash generation bonus for 5 years.	Delhi Solar Portal
Rajasthan	₹78,000	Up to ₹17,000 extra for free-electricity scheme users.	RRECL
Gujarat	₹78,000	Variable state top-ups; features waived meter inspection fees.	GEDA
Maharashtra	₹78,000	Standard central subsidy; fast-tracked net metering approvals.	MSEDCL / MEDA
Other States	₹78,000	Varies by annual state budget; most offer standard central subsidy.	Local State Agency

Tip: search “[your state] renewable energy agency rooftop solar” for the latest. Then ask your installer to show you the current notification, not just a quoted number.

Solar Rooftop Loan Schemes

Several banks offer rooftop solar loans linked to the PM Surya Ghar scheme. The terms below are from Indian Bank’s published scheme. Banks vary, so check with your bank.

Feature	Detail
Loan up to ₹2 lakh	Repo rate + 50 bps
Loan up to ₹6 lakh	Linked to the home loan rate (+100 bps for non-home-loan customers)
Tenure	Up to 10 years, with a 6-month moratorium
Charges	Nil processing fee, no prepayment penalty
Margin	10–20%
Credit score	CIBIL 680+ (new-to-credit applicants also eligible)

How disbursement works: 70% goes upfront to the vendor, and the remaining 30% is released after installation and verification.

One thing to remember: the subsidy is credited separately. Your EMI is revised after it arrives, so do not be surprised if the first few instalments look higher.

Union Bank and SBI also have rooftop solar loan products. Compare the interest rate, the margin you must pay yourself, any insurance requirement and how quickly the bank releases funds. A slightly lower rate matters less than a bank that moves fast and does not hold up your installation.

Eligibility and Documents

You are generally eligible if you:

• are an Indian citizen
• own a house with a suitable, shadow-free roof
• have a valid electricity connection and your latest bill
• have not taken a solar subsidy on the same connection before

Documents you will need:

• Aadhaar card of the primary electricity consumer account holder.
• Latest municipal utility electricity bill reflecting consumer account number and sanctioned load.
• Bank details and a cancelled cheque
• Roof ownership proof
• PAN Car (for 3 – 10 kW systems)

Keep scanned copies ready before you start the online application. Small mismatches, such as a name spelled differently on the bill and on Aadhaar, are a common reason for delays.

Note: tenants generally cannot claim the subsidy. Virtual net metering is the alternative. If you rent, talk to your landlord, because the owner may be able to apply for the roof.

How to Apply for Solar Rooftop Subsidy: Step by Step

1. Register on the national portal with your mobile number and OTP.
2. Select your state, DISCOM and consumer number.
3. Apply for rooftop solar and get the feasibility approval.
4. Choose an empanelled vendor.
5. Installation, net meter and inspection.
6. Submit the commissioning report.
7. Receive the subsidy in your bank account.

Here is what each stage means in practice. Registration is quick, but use a mobile number that you will keep, because OTPs and updates arrive there. Feasibility approval is the DISCOM confirming your connection can take a rooftop system. Only after that should you commit to a vendor. Once installation is done, the DISCOM installs a net meter and inspects the plant. The commissioning report is what unlocks the subsidy.

Prefer the DISCOM route? Portals such as MSEDCL’s offer an alternative path, usually with the subsidy adjusted upfront.

Cost, Savings and Payback After Subsidy

Based on the illustrative MSEDCL benchmark of ₹41,400/kW, a 3 kW system costs ₹1,41,340 (including 13.8% GST). After deducting the flat ₹78,000 PM Surya Ghar subsidy, your net out-of-pocket cost drops to ₹63,340.

Through net metering, the system feeds ~360 units monthly back to the grid. At a ₹7.50/unit tariff, this slashes your electricity bill by ~₹2,700 every month (₹32,400 annually).

Your real quote will differ with the vendor, the roof, the equipment and GST. Any state top-up would lower the net cost further, and a loan would spread whatever remains over several years.

Monthly savings depend on your tariff and how much power you use. Payback is generally 3–5 years. After that, you enjoy low-cost power for the rest of the panels’ 25-year life, with surplus earning net-metering credits.

To compare prices in detail, see the full solar panel cost in India breakdown.

Common Mistakes to Avoid

• Using a non-empanelled vendor. Your subsidy can be rejected, and the cost of fixing that falls on you.
• Ignoring DCR-compliant panel requirements. Domestic content rules apply to subsidised systems, so ask for proof before you pay.
• Oversizing beyond your sanctioned load. The DISCOM may not approve it.
• Skipping net-meter approval. Without it, you cannot export surplus power or earn credits.
• Not budgeting for insurance on systems above 3 kW (Indian Bank).
• Accepting verbal promises. Whatever the vendor says about warranties, timelines and maintenance should be in the contract.

Tip: ask for vendor O&M for 5 years in writing, as the Maharashtra DISCOM scheme specifies. And choose quality, DCR-compliant modules, explore high-efficiency solar panels built for Indian conditions.

FAQs

What is the subsidy on solar rooftop in India?

Under PM Surya Ghar, the central subsidy is up to ₹78,000. It is ₹30,000 per kW for the first 2 kW and ₹18,000 per kW for the third, capped at 3 kW.

Who is eligible for the solar rooftop scheme?

Indian citizens who own a house with a shadow-free roof, a valid electricity connection and no earlier solar subsidy on the same connection are generally eligible. Always confirm conditions on the national portal.

Can I get a state subsidy along with the central subsidy?

In many states, yes. State top-ups are added to the central subsidy, but amounts and conditions differ and change with budgets. Check your state’s nodal agency before you finalise your quote.

How long does it take to receive the subsidy?

It arrives after installation, inspection and the commissioning report are done. Timelines vary by DISCOM, and any state top-up is often paid separately. Ask your vendor and DISCOM for current timelines.

Can I install rooftop solar in an apartment or on a rented house?

Tenants generally cannot claim the subsidy. Apartment societies can apply for group housing support of ₹18,000 per kW for common areas. Virtual net metering is another route for flats and shared roofs.

Is a bank loan available for rooftop solar, and at what interest rate?

Yes. Indian Bank lists loans up to ₹6 lakh, with rates linked to the repo or home loan rate plus a spread. Rates vary by bank, so compare offers before you apply.

How many units of free electricity will I get?

It is not a flat free-units guarantee. Your system generates power, net metering offsets your consumption, and your bill falls. Schemes mention up to 300 units a month, depending on your generation and use.

Conclusion

The route is simple. Start with the central subsidy, add any state top-up your state offers, and use a bank loan for the rest.

Next, check the national portal, shortlist an empanelled vendor and ask for a feasibility quote. When you compare quotes, ask which solar panels they plan to use and whether they are DCR-compliant