Free Solar Rooftop Yojana: India has been making significant strides in renewable energy adoption, with solar power at the forefront of this green revolution. The government has implemented various subsidy schemes to make solar panels more accessible and affordable for citizens across different sectors. These initiatives aim to reduce the nation’s carbon footprint while addressing the growing energy demands of its rapidly developing economy.
India’s government has responded to environmental concerns by implementing various solar energy projects that include significantly reduced costs for homeowners. In addition to providing subsidies for solar panels, these programs significantly reduce the costs associated with installing a solar system. India’s transition to clean energy is aided by solar subsidies, which allow homeowners to produce electricity using renewable resources and lower their electricity costs. These incentives are available to homeowners through the PM Surya Ghar Yojana. A specific portion of the Free Solar Rooftop Yojana installment is covered by the subsidy.
Overview of Free Solar Rooftop Yojana
| Scheme Type | Subsidy Amount | Eligibility | Implementing Agency |
| Residential Rooftop | 40% for systems up to 3kW; 20% for 3-10kW | Individual homeowners | MNRE/State Nodal Agencies |
| PM-KUSUM | 30% of system cost | Farmers | MNRE/State Governments |
| Grid-Connected Rooftop | Varies by state (20-40%) | Commercial & Industrial users | State Electricity Boards |
| Off-Grid Solar | Up to 90% for special categories | Remote areas, tribal regions | MNRE/State Governments |
| Solar Parks | Financial assistance for infrastructure | Developers, state agencies | Solar Energy Corporation of India |
India’s Solar Policy – Free Solar Rooftop Yojana
National Solar Mission
The National Solar Mission (NSM), launched in 2010 as part of India’s National Action Plan on Climate Change, established the framework for India’s solar energy development. The mission has undergone several revisions and currently aims to achieve 100 GW of solar capacity by 2026. This ambitious target represents India’s commitment to reducing its dependence on fossil fuels while addressing climate change concerns.
Residential Rooftop Solar Subsidy Scheme
The residential rooftop solar subsidy program is one of the most popular schemes available to individual homeowners in India. Under this initiative, the Ministry of New and Renewable Energy (MNRE) provides financial assistance to encourage solar adoption in residential sectors.
Key Features:
- 40% subsidy for rooftop systems up to 3 kW capacity
- 20% subsidy for systems between 3 kW and 10 kW
- Implementation through state nodal agencies
- Online application process through the National Portal for Rooftop Solar
- Mandatory use of components made in India under the Atmanirbhar Bharat initiative
The calculation for subsidy amount is based on the benchmark cost determined by MNRE, which is revised periodically. For example, if the benchmark cost is ₹40,000 per kW, a 3 kW system would receive a subsidy of approximately ₹48,000 (40% of the total cost).
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PM-KUSUM Scheme 2025
The Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) scheme focuses specifically on the agricultural sector, enabling farmers to harness solar energy for irrigation and additional income generation.
Components of PM-KUSUM:
- Component A: Installation of standalone solar pumps (up to 7.5 HP)
- Component B: Installation of grid-connected solar power plants (up to 2 MW)
- Component C: Solarization of existing grid-connected agricultural pumps
Under this scheme, farmers receive a 30% subsidy from the central government, with an additional 30% provided by state governments. The farmer is required to invest only 40% of the total cost. For small and marginal farmers, some states offer additional benefits, reducing their contribution to as low as 10%.
Grid-Connected Rooftop Solar Programme
This scheme targets commercial and industrial consumers, offering varying subsidy rates depending on the state and capacity of installation. The program aims to reduce the electricity bills of commercial establishments while contributing to the national solar capacity.
Benefits:
- Reduced electricity bills through net metering provisions
- Tax benefits under accelerated depreciation
- Renewable energy certificates that can be traded
- Corporate social responsibility compliance for businesses
The subsidy amount varies from 20% to 40% depending on state policies and available central funds. States like Gujarat, Maharashtra, and Karnataka have developed robust mechanisms to implement this scheme effectively.
Off-Grid Solar Schemes
For remote areas without reliable grid connectivity, the government offers special subsidy schemes for off-grid solar solutions. These include:
- Solar street lighting systems
- Solar study lamps for students
- Solar home lighting systems for households
- Mini and micro-grids for villages
The subsidy component can reach up to 90% for special category states (northeastern states, hilly states, and island territories) and areas populated by tribal communities. These initiatives aim to achieve energy inclusion for all citizens, regardless of their geographical location.
Solar Park Development Scheme
While not a direct subsidy for individual consumers, this scheme provides financial assistance for infrastructure development of large solar parks. These parks then offer developed land and connectivity to solar project developers at competitive rates.
The government provides Central Financial Assistance (CFA) of up to ₹25 lakh per MW or 30% of the project cost, whichever is lower, for creating essential infrastructure like roads, water supply, and transmission systems.
How Can I Get a Free Solar Rooftop Yojana Subsidy?
The National Portal for Rooftop Solar was recently launched by the government to streamline the solar application process. Consumers from all over India can now apply for solar subsidies directly online and follow the entire process from application to bank account transfer of subsidy funds.
The following requirements must be fulfilled in order to qualify for the grant.
- There must be a working electrical connection in the home.
- The family shouldn’t have received any additional solar panel subsidies.
- The national portal must be used to carry out the entire solar project. Every step, from the application to the technical feasibility check to installation, must be carried out in accordance with the portal procedure.
- Customers must use authorized vendors to have their systems installed (the portal has a list of state-by-state registered vendors).
- Utilization is restricted to domestically produced solar panels (both modules and cells).
- It is required that all technical specifications and MNRE guidelines be followed.
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How to Get the Solar Panel Subsidy?
- Registration and application submission are available at www.pmsuryaghar.gov.in. No third party or vendor may act on behalf of the beneficiary.
- Within the next fifteen days, the DISCOM will carry out a technical feasibility study.
- You can use authorized vendors to install the system after approval.
- You can apply for net metering after installation, and the DISCOM will receive your request.
- After the plant has been inspected, a commissioning certificate will be given if all requirements have been fulfilled.
- The money will be credited to your account within 30 days of you entering your bank information on the portal.
Process of Availing Solar Subsidies
- Research and selection: Identify the appropriate scheme based on your requirements
- Vendor selection: Choose from MNRE-empaneled vendors only
- Site assessment: Technical feasibility evaluation of your property
- Documentation: Prepare and submit necessary documents
- Application submission: Apply through the designated portal or agency
- Installation: Complete the system installation as per approved specifications
- Inspection: Get the system inspected by designated authorities
- Subsidy disbursement: Receive the subsidy amount in your bank account
Most subsidies are now disbursed through a Direct Benefit Transfer (DBT) mechanism, ensuring transparency and reducing delays.
State-Specific Solar Subsidies 2025
While central schemes provide the framework, many states have introduced additional incentives:
Gujarat
- Additional 10% subsidy on top of central assistance
- Waiver of electricity duty for self-consumption
- Single-window clearance for faster approvals
Tamil Nadu
- Special subsidy for educational institutions and hospitals
- Zero registration charges for solar system documentation
- Priority grid connectivity for solar installations
Karnataka
- Land conversion fee exemption for solar projects
- Additional incentives for systems in backward districts
- Concessional loan facilities through state financial institutions
Maharashtra
- Property tax rebates for buildings with rooftop solar
- Additional subsidy for government buildings and institutions
- Special provisions for agricultural solar pumps
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Conclusion – Free Solar Rooftop Yojana
India’s solar subsidy schemes represent a crucial policy intervention to accelerate the adoption of clean energy across different sectors of the economy. While challenges remain in implementation and awareness, the overall framework has successfully catalyzed significant growth in the country’s solar capacity.
For potential adopters, understanding the nuances of these schemes can lead to substantial financial benefits while contributing to India’s climate goals. As the technology continues to become more efficient and affordable, solar energy is poised to play an increasingly central role in India’s energy mix, supported by these evolving subsidy mechanisms.
Free Solar Schemes in India FAQs
How much subsidy is available for a 5kW residential rooftop solar system?
you would receive 40% subsidy for the first 3kW and 20% for the remaining 2kW. Based on current benchmark costs, this would amount to approximately ₹70,000-80,000.
Can tenant install solar panels and avail subsidies?
Yes, tenants can install solar systems with documented permission from the property owner. The subsidy eligibility remains the same as for homeowners.
How long does it take to receive the subsidy amount?
Typically, subsidies are disbursed within 2-3 months after successful installation and inspection of the system. However, this timeline may vary depending on state procedures.
Are batteries covered under the subsidy schemes?
For grid-connected systems, batteries are generally not included in the subsidy calculation. However, for off-grid systems, battery storage is considered as part of the system cost for subsidy purposes.
Can commercial establishments avail solar subsidies?
Yes, commercial establishments can avail subsidies under specific schemes, though the rates are typically lower than those for residential consumers.
