Archive · 7 Oct 2026
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.
Several states are adding subsidies of up to Rs 51,000 for rooftop solar systems.
For a typical 3-kW system, Uttarakhand offers the lowest estimated household cost at Rs 68,600, followed by Ladakh at Rs 69,600.
Uttar Pradesh and Delhi bring the estimated upfront cost below Rs 1 lakh through state and central support.
Without additional state incentives, a household is estimated to pay Rs 1,27,400 after the standard central subsidy.
The report says payback periods vary by state, and that implementation remains a key operational challenge.
- Who
- The central government and several state governments are subsidizing rooftop solar systems for households.
- What
- States are adding financial support to central subsidies, reducing the upfront cost of a typical 3-kW residential rooftop solar system.
- When
- The report says 7.79 million households had registered under the scheme as of August 2026.
- Where
- Across India, with state-level examples including Uttarakhand, Ladakh, Uttar Pradesh, Delhi, Assam, Tamil Nadu, Rajasthan, Maharashtra and Gujarat.
- Why
- The subsidies are intended to reduce households’ upfront costs for rooftop solar installations.
- 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