State Government Solar Subsidy Structure in India
- March 19, 2025
- Posted by: Admin
- Categories: Government Policies, Solar & Renewable Energy
Introduction
India is making significant strides in its renewable energy journey, with rooftop solar (RTS) playing a pivotal role. The Central Financial Assistance (CFA) from the Ministry of New and Renewable Energy (MNRE) offers a national incentive. However, state government subsidies are important for speeding up solar adoption in local communities.
This blog post explores state-level solar subsidies. It provides a helpful guide to navigate the different incentives available.
1. The Synergy of CFA and State Subsidies
1.1 Central Financial Assistance (CFA)
The MNRE’s CFA acts as a foundational incentive, reducing the upfront cost of RTS installations across the country. The CFA amounts are generally linked to the capacity of the solar system.
1.2 State Government Subsidies
Individual state governments offer additional incentives to further promote solar energy within their jurisdictions. These subsidies vary significantly in terms of:
• Subsidy Amount: The financial assistance provided per kilowatt (kW) or kilowatt-peak (kWp) of installed capacity.
• Capacity Limits: The maximum system size eligible for the subsidy.
• Eligibility Criteria: Specific requirements that beneficiaries must meet (e.g., residential status, income level).
• Subsidy Mechanism: Determine whether the provider offers the subsidy upfront, as a generation-based incentive (GBI), or through other means.
2. Decoding State-Specific Subsidy Structures
| State/UT | Subsidy Details |
| Uttar Pradesh | ₹15,000/kW up to 2 kW |
| Haryana | Up to ₹25,000/kW up to 2 kW (only for poor families) |
| Uttarakhand | Up to ₹23,000/kW for 1 kW; capped at ₹57,000 |
| Goa | 10% of benchmark cost till 90 kW |
| Daman and Diu | ₹10,000/kW up to 5 kW |
| Ladakh | ₹20,000/kWp up to 2 kWp; ₹10,000/kWp for additional capacity, capped at ₹30,000 |
| Delhi | ₹2,000/kW up to 5 kW (generation-based incentive) |
| Assam | ₹15,000/kW up to 3 kW; capped at ₹45,000 |
| Lakshadweep | ₹45,000/kW up to 2 kW; ₹27,000/kW for additional 1 kW |
| Odisha | ₹20,000/kW for Bhubaneshwar city |
3. Navigating the Subsidy Landscape: Key Considerations
3.1 Eligibility Criteria
Each state may have specific eligibility criteria for its subsidy programs, such as:
• Residential or commercial status
• Property ownership
• Income level
• Type of solar system (e.g., grid-connected, off-grid)
3.2 Application Process
The process for applying for state subsidies can vary considerably. It’s essential to:
• Contact the State Nodal Agency: This is the primary government body responsible for renewable energy in the state.
• Engage with DISCOMs: Distribution Companies (DISCOMs) play a crucial role in grid connectivity and subsidy processing.
3.3 Documentation Requirements
Be prepared to provide the necessary documentation, which may include:
• Proof of identity and address
• Property ownership documents
• System design and specifications
• Invoices and payment receipts
3.4 Subsidy Disbursement
The method and timing of subsidy disbursement can vary. Some states provide upfront subsidies, while others may disburse them after system installation and inspection.
3.5 Policy Updates
Government policies and subsidy programs are subject to change. It’s crucial to stay updated on the latest information from official sources.
4. Empowering Your Solar Journey
By understanding the intricacies of state government subsidies, you can make informed decisions about investing in rooftop solar. Remember to:
• Research thoroughly: Gather information from official sources and consult with solar installers.
• Compare options: Evaluate the CFA and state subsidies available in your area.
• Plan carefully: Design a solar system that meets your energy needs and maximizes your subsidy benefits.