2 hrs ago

States Expand Rooftop Solar Subsidies, Cutting Household Costs

The government helps people pay for solar panels on their roofs.

Some states add their own money to the central government’s subsidy.

This can make a 3-kW system much cheaper for families.

In Uttarakhand, the estimated cost after subsidies is Rs 68,600.

In places without extra state help, the estimated cost is Rs 1,27,400.

The time it takes for savings to cover the cost differs from state to state.

Banks also offer loans for rooftop solar projects.

The report says getting installations completed is still a major challenge.

Key facts

Typical system: 3 kW; base-case estimated cost of Rs 2,05,400
Highest combined subsidy: Uttarakhand: Rs 1,36,800, including Rs 85,800 in central assistance and Rs 51,000 from the state
Lowest estimated household cost: Uttarakhand: Rs 68,600 after subsidies
Central scheme: PM Surya Ghar: Muft Bijli Yojana, with central assistance of up to Rs 78,000 for systems of 3 kW or more, or Rs 85,800 in special-category states and Union territories
No additional state incentive: Estimated household upfront cost after the standard central subsidy: Rs 1,27,400
Registrations: Around 7.79 million households had registered as of August 2026
Installations: Completed installations stood at 60% of the 10 million-household FY27 target, according to the report
Solar loan terms: Public-sector banks offer dedicated loans at around 6% annual interest, for up to 10 years, covering 80–90% of project costs

financialexpress.com · 2 hrs ago