Solar Subsidy 2025 State-Wise List: India is witnessing a clean energy transformation fuelled by massive growth in rooftop solar adoption. As part of this movement, both the central government and state governments are offering lucrative solar panel subsidies to make renewable energy affordable for homeowners, housing societies, and small businesses. These subsidies drastically lower upfront installation costs, helping millions of households shift toward clean energy while saving thousands on power bills every year.
Under the central initiative—PM Surya Ghar: Muft Bijli Yojana (2025)—homeowners can receive up to ₹78,000 per household in subsidy. But that’s not all. Many Indian states, such as Gujarat, Rajasthan, Maharashtra, and Delhi, provide additional financial incentives, making solar power nearly 40–50% cheaper.
This article covers a state-wise breakdown of solar subsidies in India (2025), identifies which states offer the highest benefits, and explains how homeowners can claim these incentives to maximise savings.
Central Government Solar Subsidy (2025)
Before exploring the state-level support, let’s understand the national solar subsidy granted by the Ministry of New and Renewable Energy (MNRE) under the PM Surya Ghar Yojana.
| Rooftop Solar Capacity | Central Government Subsidy |
| Up to 2 kW | ₹30,000 per kW |
| 3 kW | ₹78,000 (Total) |
| Above 3 kW | ₹78,000 (Flat limit per household) |
The subsidy is credited directly into the beneficiary’s bank account after successful installation and inspection, ensuring transparency through the pmsuryaghar.gov.in portal.
However, many states further top up these central subsidies through local incentive programs, elevating total savings to ₹1 lakh or more for a 5 kW system.
Why States Offer Additional Solar Subsidies
States have varying levels of solar irradiance, power costs, and grid reliability. To encourage adoption that aligns with local goals, state governments offer additional support via the following:
- Direct financial top-up on central subsidy
- Additional capital incentives per kW
- Rebates on net-metering fees and inspection costs
- Waivers on property tax or connection charges
- Interest-free loans under cooperative energy missions
Such policies increase adoption rates, speed up renewable capacity growth, and align with India’s goal of achieving 500 GW of renewable energy capacity by 2030.
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Solar Subsidy 2025: State-Wise Breakdown
1. Gujarat – India’s Solar Leader
Total Subsidy (2025): Up to ₹1,00,000
State Top-Up: Additional ₹10,000–₹20,000 per kW on top of the central incentive
Eligibility: Residential rooftop systems (up to 10 kW)
Gujarat remains the top-performing state for rooftop solar capacity and offers one of the highest financial benefits for homeowners. Through Gujarat Energy Development Agency (GEDA), the subsidy covers both small-scale residential and cooperative housing societies.
Example:
For a 5 kW system costing ₹2.4 lakh:
- Central Subsidy: ₹78,000
- State Subsidy: ₹20,000
- Net Cost: ₹1.42 lakh
- Monthly Savings: ₹6,000
- Payback: ~2 years
2. Rajasthan – Powering the Desert State
Total Subsidy (2025): 35% state subsidy + central incentive
Applicable For: 1–10 kW residential solar rooftops
Administration: Rajasthan Renewable Energy Corporation Limited (RRECL)
Rajasthan is India’s largest solar energy producer and encourages rooftop installations through attractive dual subsidies. The state offers up to ₹35,000 per kW depending on capacity and location.
For a 3 kW system:
- Central Subsidy: ₹78,000
- State Subsidy: ₹35,000
- Total Benefit: ₹1.13 lakh
- Effective Cost: ~₹1.1 lakh (after subsidies)
Additionally, residents enjoy fast net-metering and free technical feasibility checks.
3. Delhi (NCT) – Incentives for Urban Homes
State Subsidy (2025): ₹2,000 per kW (max ₹6,000 per household)
Administered By: Delhi Solar Policy 2025 and local DISCOMs
Total Effective Saving: 35–40% reduction in system cost
Delhi ranks among the top five states for urban rooftop solar installations. The government, through BSES and Tata Power DISCOMs, gives combined incentives and waives utility inspection fees.
Example – Dwarka Case Study:
A 3 kW system costing ₹1.7 lakh receives:
- Central Subsidy: ₹60,000
- Delhi Subsidy: ₹6,000
- Net Cost: ₹1.04 lakh
- Monthly Saving: ₹3,500
- Payback in ~2.5 years
4. Maharashtra – Dual-Focused Solar Push
State Subsidy (2025): 30% for residential, 20% for commercial
Launch Agency: MSEDCL and MEDA
Maharashtra offers significant solar incentives to both homeowners and MSMEs. Through its progressive MahaUrja policy, urban households installing rooftop solar systems can enjoy up to 30% subsidy on total costs.
Example:
For a 4 kW system (₹2.2 lakh):
- Central Subsidy: ₹78,000
- State Subsidy: ₹40,000
- Final Cost: ₹1.02 lakh
The state also provides additional benefits like 100% property tax rebates for solar-powered homes in select municipalities.
5. Tamil Nadu – Supporting Industrial and Residential Growth
Residential Subsidy: 25%
Commercial Subsidy: 15%
Administering Agency: Tamil Nadu Energy Development Agency (TEDA)
The Tamil Nadu government encourages residential users and MSMEs to adopt solar by providing top-up support on the central incentive.
Industrial and commercial rooftops benefit from additional capital aid under the state’s Solar Energy Policy 2025, reducing operational costs for small businesses.
6. Karnataka – Solar for Smart Cities
Residential Subsidy: 30%
Commercial Subsidy: 20%
Administered by: Karnataka Renewable Energy Development Ltd. (KREDL)
Karnataka’s urban energy policy prioritizes rooftop solar in Bengaluru, Hubli, and Mysuru smart-city zones. Its scheme provides additional support for energy-efficient inverters and high-quality battery systems, ensuring grid stability and user independence.
7. Uttar Pradesh – Expanding Rural Solar Adoption
Subsidy Rate: ₹15,000 per kW (capped ₹30,000) + Central Top-Up
Administered By: Uttar Pradesh New and Renewable Energy Development Agency (UPNEDA)
In a state where conventional grid access remains uneven, UP promotes solar for both residential and rural households. Subsidy benefits are accessible via the UPNEDA portal and combine with central assistance up to ₹78,000, resulting in total support beyond ₹1 lakh for 3 kW+ systems.
8. Haryana – For Green Households and Societies
Total Subsidy: Up to 40% of installation cost
Administering Agency: HAREDA (Haryana Renewable Energy Development Agency)
Haryana remains one of the earliest adopters of state-led rooftop solar subsidies. Under the current 2025 program, individual households can enjoy direct capital subsidies and loan assistance schemes for systems up to 10 kW.
Housing societies and RWAs (Resident Welfare Associations) receive financial benefits for central ground-mounted solar systems connected to common facilities.
9. Kerala – Solar Plus Storage Incentives
Residential Top-Up: ₹10,000 per kW (Max ₹25,000)
Special Incentives: Additional ₹20,000 for systems with energy storage
Implementing Body: Kerala State Electricity Board (KSEB)
Kerala places strong emphasis on solar-plus-battery storage setups for uninterrupted power supply in coastal and hilly zones. Users benefit from battery-linked subsidies and interest reimbursements on green home loans.
10. Telangana & Andhra Pradesh – Rural and Institutional Gains
Both states offer 25–30% subsidies for residential users and farmer cooperatives under solar-friendly net-metering programs. Rural electrification initiatives integrate rooftop systems in panchayat clusters, schools, and community halls, improving social infrastructure.
Central + State Benefit Comparison (2025)
| State | State Subsidy Rate | Combined Central + State Incentive (Approx.) | Residential Capacity Elig. | Remarks |
| Gujarat | ₹10,000–₹20,000 per kW | Up to ₹1 lakh | 1–10 kW | Highest return on investment |
| Rajasthan | 35% on cost | ₹1.13 lakh (for 3 kW) | <10 kW | Strong performance in urban & semi-urban homes |
| Maharashtra | 30% | ₹1 lakh total | Residential/Commercial | Includes property tax incentives |
| Delhi | ₹2,000–₹6,000 | ₹84,000 | 1–3 kW | Easy DISCOM-based applications |
| Tamil Nadu | 25% | ₹90,000 (avg) | Residential | Supports MSMEs and industries |
| Uttar Pradesh | ₹30,000 max | ₹1.08 lakh | <5 kW | Rapid solar expansion state |
| Kerala | ₹10,000/kW | ₹1 lakh (for 5 kW) | 1–5 kW | Bonus for storage-enabled setups |
How to Apply for State & Central Subsidies
Farmers, homeowners, and businesses can easily apply through the National Portal for Rooftop Solar or their respective state energy departments.
Central Process via PM Surya Ghar Portal
- Visit
- pmsuryaghar.gov.in
- Register using your electricity connection number and discom details
- Select the appropriate system size and vendor
- Upload required documents (ID proof, electricity bill, roof photograph)
- Post-installation, DISCOM will verify and approve
- Subsidy credited via Direct Benefit Transfer (DBT)
State-Specific Portals
- Gujarat: geda.gujarat.gov.in
- Rajasthan: energy.rajasthan.gov.in/rrecl
- Maharashtra: msedcl.com/solarSubsidy
- Tamil Nadu: teda.in
- Uttar Pradesh: upneda.org.in
Applicants must choose MNRE-approved vendors listed on the portal and ensure proper commissioning for subsidy eligibility.
States Offering the Highest Benefits in 2025
Based on subsidy rates, speed of disbursal, and additional incentives, here are the Top 5 Indian States with the most favorable benefits for rooftop solar installation in 2025 :
| Rank | State | Total Support (Approx.) | Notes |
| 1 | Gujarat | ₹1.0–1.1 lakh | Best central + state coordination |
| 2 | Rajasthan | ₹1.0–1.13 lakh | Highest % subsidy rate |
| 3 | Maharashtra | ₹1.0 lakh | Large urban participation |
| 4 | Delhi | ₹84,000 | Easy residential access |
| 5 | Uttar Pradesh | ₹1.08 lakh | Ideal for rural and semi-urban users |
Why Rooftop Solar in 2025 Is a Smart Investment
- Energy Independence: Free power generation for 20–25 years.
- 30–60% Cost Savings: Combined subsidies drastically cut setup budgets.
- Eco-Friendly: Zero emissions and a reduced carbon footprint.
- Fast ROI: Most systems pay back within 2–3 years.
- Increased Property Value: Solar-equipped homes command higher resale demand.
Read Also: Transparent Solar Glass: How India’s Skyscrapers Will Generate Power by 2025
Frequently Asked Questions (FAQs)
1. Can I combine state and central subsidies?
Yes. Most states allow both central (MNRE) and state-level incentives to be combined.
2. Who is eligible for rooftop solar subsidy?
Residential property owners, RWAs, and housing societies are eligible; commercial users are typically restricted to state subsidies.
3. How is the subsidy amount credited?
Subsidy amounts are directly transferred to the beneficiary’s registered bank account via DBT after DISCOM verification.
4. Is there a maximum system limit?
Most state subsidies apply up to 10 kW capacity for individual homes.
5. Do subsidies apply to battery systems?
Few states like Kerala and Gujarat offer additional incentives for solar-plus-storage installations.
Conclusion
The Solar Subsidy 2025 framework showcases India’s multi-tiered commitment to clean energy. The central government’s PM Surya Ghar Yojana, coupled with active state-level schemes, offers massive financial relief to homeowners switching to solar. States like Gujarat, Rajasthan, Maharashtra, and Uttar Pradesh have emerged as clear leaders, combining fiscal support with strong administrative ease.
For households planning to install solar this year, 2025 is the perfect time: record-high subsidies, zero-cost power for 25 years, and rapid installer networks make it both eco-friendly and economically empowering.