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Are you planning to install solar panels in 2025? You couldn’t have picked a better time. With the full rollout of the PM Surya Ghar: Muft Bijli Yojana, the Indian government is practically paying you to generate your own electricity.
In 2025, a homeowner can reduce their solar installation cost by 40% to 60% through a combination of Central and State subsidies. This guide breaks down exactly how much money you can save in your state.
The "Golden Numbers": Central Government Subsidy (CFA)
Before looking at your state, you must understand the Central Financial Assistance (CFA). This is available to every Indian household, regardless of location.
As of 2025, the subsidy structure is fixed. It is no longer a percentage of the cost but a flat amount credited directly to your bank account.
| System Capacity | Central Subsidy Amount | Who is this for? |
|---|---|---|
| 1 kW | ₹30,000 |
Small homes (Fans, Lights, TV) |
| 2 kW | ₹60,000 |
Medium homes (Fridge, Washing Machine) |
| 3 kW | ₹78,000 |
Standard 2-3 BHK (Runs 1 AC) |
| Above 3 kW | ₹78,000 Fixed Cap |
Large homes / Villas (Multiple ACs, Heavy Load) |
Pro Tip
The "Sweet Spot" for maximum return on investment (ROI)
3 kW — you get the maximum subsidy (₹78,000) and can offset a monthly bill of roughly ₹2,500–₹3,000.
State-Wise Subsidy List 2025 (Top-Up Benefits)
Some states offer an additional subsidy on top of the Central ₹78,000. Find your state below to see if you get extra benefits.
1. Uttar Pradesh (UP): The “Double Engine” Benefit
UP currently offers the most aggressive solar policy in India.
State Top-Up: ₹15,000 per kW (Max ₹30,000).
Total Benefit (3 kW): ₹78,000 (Centre) + ₹30,000 (State) = ₹1,08,000.
Impact: A 3 kW system costing ₹1.6 Lakhs effectively costs you only ₹52,000.
2. Maharashtra: The “SMART” Scheme
Maharashtra has a dual policy in 2025.
General Category: Only Central Subsidy (₹78,000 max).
Low Income (BPL): Under the SMART Solar Scheme, if you consume less than 100 units/month and fall under BPL/SC/ST categories, the government covers up to 90-95% of the cost. You pay nearly nothing.
3. Tamil Nadu: The Direct Incentive
Scheme: Chief Minister’s Solar Rooftop Capital Incentive Scheme.
Benefit: Flat incentive of ₹20,000 per kW for domestic consumers (in addition to central subsidy).
Condition: Must be grid-connected and installed by TEDA-empanelled vendors.
4. North East & Hill States (Assam, Uttarakhand, Himachal)
These are “Special Category States” due to difficult terrain.
Benefit: While the base central subsidy is similar, the benchmark costs allowed are higher (starting at ₹33,000/kW for the first 2 kW).
Assam Specific: Offers a state subsidy of roughly ₹15,000 – ₹45,000 depending on the system size to bridge the gap.
5. Delhi & Karnataka: The “Virtual” Revolution
These states have moved away from cash top-ups for general consumers and focused on policy innovation.
Virtual Net Metering (VNM): Living in a flat in Bengaluru or Delhi? You can buy solar panels installed at a different location (or a common community roof) and adjust the generated units against your personal electricity bill.
Subsidy: Standard Central Subsidy (₹78,000 max) applies.
Cost vs. Savings: Is It Worth It?
Let’s look at the math for a typical Indian middle-class household.
Scenario: Installing a 3 kW System in a general state (e.g., Rajasthan, MP, Gujarat).
| Item | Amount (Approx) |
|---|---|
| Total System Cost (Tier-1 Panels) | ₹1,60,000 |
| Less: Central Subsidy | (-) ₹78,000 |
| Net Cost to You | ₹82,000 |
| Monthly Electricity Savings | ₹3,000 |
| Annual Savings | ₹36,000 |
| Payback Period | ~ 2.2 Years |
How to Apply (Step-by-Step 2025)
The process is now 100% digital. Do not pay any agent for the application.
Register: Visit the National Portal pmsuryaghar.gov.in.
Login: Enter your Mobile Number and Electricity Consumer Number.
Apply: Fill in the basic details. Your DISCOM (Electricity Board) will review technical feasibility.
Install: Once approved, choose a Registered Vendor from the portal list.
Critical Rule: You MUST use “DCR” (Domestic Content Requirement) solar panels. Imported panels are not eligible for subsidy.
Net Metering: The vendor will install the “Net Meter” (which counts the power you sell to the grid).
Subsidy Release: Upload the commissioning certificate and a cancelled cheque. Money reaches your bank in 30 days.
Frequently Asked Questions (FAQs)
Can I install solar panels if I live in an apartment?
Yes! If your society agrees, you can install a plant on the common roof. Under PM Surya Ghar, Group Housing Societies (RWAs) get a subsidy of ₹18,000 per kW (up to 500 kW) to power common areas (lifts, lights, EV chargers).
What happens if I use imported panels (e.g., from China)?
You will NOT get any subsidy. To avail the ₹78,000 benefit, you must use “Made in India” panels listed in the government’s ALMM list.
Is the subsidy amount different for 4 kW or 5 kW systems?
No. The subsidy is capped at 3 kW. Whether you install 3 kW, 5 kW, or 10 kW, the maximum subsidy you will receive is fixed at ₹78,000.
Can I get a loan for the remaining amount?
Yes. Public sector banks (SBI, Canara, etc.) offer special solar loans at low interest rates (around 7%) specifically for this scheme.