Solar Subsidies

The Ministry of New and Renewable Energy (MNRE) has introduced a number of subsidies in order to promote Solar energy in India.

The following solar systems are eligible for a subsidy:

  • Solar Water Pumps
  • On-Grid Solar System 
  • HYBRID Solar Systems 

Is the subsidy available to you?

The solar subsidy is available to the following categories:

Residential All residential buildings including group housing
Institutional All schools, colleges and institutes
Social Sector All Non-profit organizations including community centers, welfare homes, old age homes, orphanages etc.

How much Solar subsidy is available?

As per the current guidelines set by MNRE, 30-90% subsidy on benchmark capital cost is available to consumers.

% of Benchmark Cost Applicable for
30% All other States/UTs not covered under Special States
70% Special Category States/Islands:North Eastern States including Sikkim, Uttarakhand, Himachal Pradesh, Jammu & Kashmir and Lakshadweep, Andaman & Nicobar Islands
90% Solar Water Pumping Systems for Farmers
Step-by-Step Guide to get the MNRE Subsidy
Step 1 Submit a project report (entailing technical and financial details, operations and maintenance plan) along with system monitoring and reporting details to MNRE via district head of your State Nodal Agency (SNA)
Step 2 MNRE evaluates your project on technical and financial points
Step 3 Following approval of your project by MNRE, Open tenders are invited by your SNA and a channel partner will be selected from open bidding process
Step 4 Channel Partner completes the installation process
Step 5 SNA inspects your installation to ensure that only MNRE approved components are installed
Step 6 The subsidy amount is released to channel partner directly from MNRE
Step 7 You will be responsible for the payment of 70% of the system cost. You can choose to finance your solar plant and may work with your bank to procure finance for 70% of the system cost