Solar Energy

Introduction

In 2025, the Indian government has strengthened its support to make solar energy more affordable and accessible. Several schemes, subsidies, and incentives are in force to encourage households, institutions, farmers, and manufacturers to adopt solar solutions. Whether you’re planning rooftop solar, solar pumps, or large-scale solar plants, knowing the current schemes helps you make an informed decision and save significantly.


Key Solar Schemes & Subsidies in 2025

1. PM Surya Ghar: Muft Bijli Yojana

Launched in February 2024, this flagship government initiative aims to bring rooftop solar to 1 crore (10 million) households. Under this scheme, households can install rooftop systems (typically up to 3 kW) and receive a one-time subsidy capped at around ₹78,000. Additionally, beneficiaries are promised 300 units of free electricity per month, which is part of the “free bijli” component.

👉 Learn more on the official PM Surya Ghar Portal.


2. MNRE Grid-Connected Rooftop Solar Program (Phase II)

 

Managed by the Ministry of New and Renewable Energy (MNRE), this programme offers Central Financial Assistance (CFA) to residential consumers installing grid-connected rooftop solar systems.

Subsidy rates in 2025:

System Size Subsidy Rate (Approx.)
Up to 3 kW 40% of benchmark cost
3 – 10 kW 20% of benchmark cost
Above 10 kW No central subsidy

This programme is valid through March 2026 for Phase II installations.


3. State-Level Supplementary Subsidies & Incentives

Apart from central subsidies, many state governments and DISCOMs offer additional incentives, such as extra cash grants per kW or flat rebates.

    • Delhi: Subsidy of ₹10,000 per kW for rooftop solar systems up to 3 kW (capped at ₹30,000).

    • Gujarat: Leading the way under PM Surya Ghar, with lakhs of rooftop solar installations supported by subsidies.

These state incentives vary, so always check with your local DISCOM for the latest details.


4. Incentives for Manufacturers (PLI Scheme)

To promote domestic solar manufacturing, the government has rolled out the Production Linked Incentive (PLI) scheme for high-efficiency solar PV modules. This programme rewards manufacturers based on production and sales volumes, reducing India’s dependency on imports and boosting local industries.


5. Policy & Regulatory Support

MNRE has simplified application and subsidy disbursement through the National Portal for Rooftop Solar. Consumers can now apply online, select empanelled vendors, track applications, and receive subsidies directly in their bank accounts.

In addition, virtual net-metering and special incentives for group housing societies have been introduced in some states.


Eligibility Criteria & Conditions

To benefit from solar subsidies in 2025, homeowners must:

    1. Belong to the residential category (commercial/industrial systems usually don’t get central subsidies).

    1. Install systems up to 10 kW, with maximum benefits capped at 3 kW.

    1. Use MNRE-approved vendors and equipment listed under the Approved List of Models and Manufacturers (ALMM).

    1. Connect the system to the grid with net metering.

    1. Provide valid documents — electricity bill, ID proof, and bank account details.


How to Apply

Here’s a simplified step-by-step process for applying to solar subsidy schemes in 2025:

    1. Register on the National Rooftop Solar Portal.

    1. Select an approved vendor listed on the portal.

    1. Install your solar system as per guidelines.

    1. Apply for net metering through your DISCOM.

    1. Upload required documents — photos of installation, ID proof, and electricity bill.

    1. Verification & approval by DISCOM officials.

    1. Subsidy disbursement directly to your bank account.


Latest Highlights (2025)

    • A 3 kW rooftop system can fetch subsidies of up to ₹78,000 under central schemes.

    • Delhi offers an additional ₹30,000 per household as a state subsidy.

    • Gujarat leads India with more than 3.3 lakh rooftop solar systems already installed.


Things to Keep in Mind

    • Subsidy funds are limited — applying early improves your chances.

    • Benchmark costs set by MNRE are revised periodically, affecting final subsidy amounts.

    • Always ensure that invoices, equipment, and vendors meet MNRE approval guidelines.


Conclusion

With rising energy costs and a national push for renewable energy, 2025 is the perfect year to switch to solar power in India. Thanks to schemes like PM Surya Ghar Muft Bijli Yojana and MNRE’s Rooftop Solar Programme, homeowners can now install solar panels at much lower costs while enjoying free power, reduced bills, and a greener lifestyle.

By applying through official portals and using approved vendors, you can take full advantage of these subsidies and make your home both eco-friendly and cost-efficient.