Understanding Solar Subsidies and Incentives in India

Rooftop solar subsidies in India generally come from two layers: a central government scheme that sets a baseline subsidy for residential systems up to a certain capacity, and state-level schemes that can add further incentives, net-metering benefits or accelerated depreciation for commercial installs.

Eligibility and subsidy amounts are typically tiered by system size — for example, a lower per-kW subsidy rate applies above the first few kW, tapering off entirely past a certain capacity. This is designed to make small residential systems more accessible rather than subsidize very large installations.

The application process usually runs through your local DISCOM (electricity distribution company): register your interest, get your installer empanelled if required, complete installation, pass a technical inspection, and the subsidy is disbursed after net-metering is approved — not before installation.

Documentation matters. Keep your invoice, installation certificate and net-metering approval on file; most schemes require these for disbursement and for any future service claims.

Because scheme details and amounts change periodically, we recommend confirming current rates for your state before finalizing system size — our team can walk you through what applies in your area when you register for a consultation.