Rooftop solar subsidies in India 2025 – Complete Guide
India keeps promoting rooftop solar through a mix of central and state incentives. This guide lists every major 2025 rooftop solar subsidy for homes and businesses, with official sources so you can claim the right benefit.
Residential Sector
Central CFA under PM Surya Ghar
| System size | Subsidy rate | Maximum payout |
|---|---|---|
| Up to 2 kW | ₹30,000 per kW | – |
| Third kW | ₹18,000 | – |
| 3 kW and above | Subsidy capped | ₹78 000 |
Subsidy is credited to the homeowner’s bank account after installation approval via the national MNRE portal.
Central CFA works with net-metering in most states, letting you earn bill credits for extra solar units.
State-level extras for homes
| State | Capital subsidy | Generation-based incentive | Source |
|---|---|---|---|
| Delhi | ₹10,000 / kW (max ₹30,000) | ₹3 / kWh for ≤3 kW, ₹2 / kWh for 3–10 kW | Delhi Solar Portal |
| Maharashtra | none (CFA only) | none | MSEDCL i-SMART |
| Tamil Nadu | ₹20,000 / kW | optional GBI in select phases | TEDA |
| Assam | about 40 % of cost | – | AEDA |
| Goa | 40 – 50 % of cost | – | GEDA |
| Gujarat | ₹10,000–₹20,000 / kW* | – | GEDA |
| Uttar Pradesh | ₹15,000 / kW (max ₹30 000) | – | UPNEDA |
*Awaiting new 2025 policy. Check GEDA circulars for updates.
Need help? See our installation process guide for timeline and document tips.
Commercial and Industrial Sector
Businesses do not get CFA. Instead they save through tax and policy levers:
| Incentive | Details | Benefit |
|---|---|---|
| Accelerated depreciation | 40 % in year 1 under Income-Tax Section 32 | Cuts taxable income, shortens pay-back |
| Net / gross metering | Allowed in most states, export credits carry 12 months | Reduces power bills, adds revenue |
| GST input credit | Solar supply attracts blended 13.8% GST | ITC recoverable for businesses |
State policies can add GBIs, banking, or wheeling charge waivers. Example: Delhi pays ₹1 / kWh GBI for early C&I adopters up to 200 MW.
How to claim your subsidy
- Choose an MNRE-approved vendor or refer to VaySolar's pre-vetted list of shortlisted vendors.
- Apply on national portal with Aadhaar, bank details, and property papers.
- Install and get inspected. Vendor uploads photos and test reports.
- Subsidy disbursal arrives in 30-90 days after MNRE verifies documents.
For state top-ups, apply on the respective DISCOM or energy-department portal.
Frequently asked questions
Can I get both central and state subsidies?
Yes. Central CFA plus any state capital subsidy or GBI, subject to that state’s rules.
Does subsidy apply to batteries?
No. CFA covers solar panels, inverter, mounting, and wiring only.
Do I pay tax on the subsidy?
Current Income-Tax rules treat residential CFA as a price discount, not taxable income.
Sources and verification
- PM Surya Ghar scheme guidelines – MNRE, May 2025
- Delhi Solar Policy 2023 documents
- TEDA order No. 34/2025 for Tamil Nadu subsidy
- MSEDCL i-SMART user manual (Mar 2025)
Last updated: 17 June 2025