The sun is no longer just a source of light; it’s rapidly becoming India’s biggest power plant. All across India, rooftops are being converted into clean-energy hubs, and the government is fuelling this transformation with one of the most ambitious renewable-energy drives the country has ever seen.
India is facing a stacking set of pressures: electricity demand that’s climbing steeply, ageing and stressed grids, heavy reliance on coal and fossil fuels, major water consumption by thermal power plants, and far-reaching climate commitments.
Deploying residential rooftop solar helps tackle many of these at once: less coal burned, less water used, and less carbon emitted.
And the scale of the opportunity is staggering: A new report by TERI (The Energy and Resources Institute) estimates India’s total solar potential at 10,830 gigawatts (GW), with rural and urban rooftop solar PV contributing a combined potential of 960 GW. As of June 2025, the total rooftop capacity installed in India crossed 16.5 GW.
So the question for India isn’t if we will go solar, but rather how quickly, how widely, and how efficiently we will go solar! And in this sweep of change, residential rooftop solar has emerged as a key pillar of India’s renewable revolution.
Backed by the Government’s “PM Muft Bijli” model
Launched in 2024, the Pradhan Mantri Surya Ghar: Muft Bijli Yojana or the PMSGMBY is the government’s flagship program to enable widespread residential rooftop solar adoption.
Some of the key parameters are
- Approved outlay is ₹ 75,021 crore, implementation till FY 2026-27.
- Its goal is 1 crore (10 million) rooftop solar systems in homes.
- Provide free/low-cost electricity (up to 300 units per month) to the participating households.
- Create a complete solar ecosystem, from manufacturing and supply chains through O&M support, thereby boosting local jobs, energy security, and lowering imports.
- To produce renewable electricity of 1,000 billion units through the capacity installed under the scheme, which will result in reduction of 720 million ton of CO2e emission during the 25 years of lifetime for rooftop solar projects.
- Support India’s NDC goal of achieving 30 GW of rooftop solar by FY 2026-27 (residential sector).
- The scheme also accommodates RWAs (Resident Welfare Associations) and GHS (Group Housing Societies) for shared rooftop/common space solar installations along with residences.
Central Financial Assistance under the PMSGMBY
| Category | Subsidy | Special Category States/UTs (Jammu & Kashmir, Ladakh, Himachal Pradesh, Uttarakhand, North-East, Andaman & Nicobar, Lakshadweep) |
| Residences | ||
| 1 kW | 30,000 | 33,000 |
| 2 kW | 30,000 | 33,000 |
| 3 kW | 18,000 | 19,800 |
| Residential Total | 78,000 | 85,800 |
RWAs/GHS (Available for shared facilities up to 500 kW) | 18,000 per kW | 19,800 per kW |
Additionally, the government has recently announced a GST reduction on renewable energy devices and solar photovoltaic cells from 12% to 5% to make installation more affordable.
Ease of Financing Under PM Surya Ghar: To make solar more accessible, the PM Surya Ghar: Muft Bijli Yojana also offers easy financing through the national portal. Leading banks like SBI, PNB, Canara Bank, and Bank of Baroda now provide low-interest loans for residential rooftop systems. Homeowners can apply directly through the PM Surya Ghar portal, where loan and vendor options are integrated, ensuring quicker approvals, simple documentation, and affordable solar adoption for every household.
State-Wise Breakup of Subsidy – North Indian States
Here we focus on the key North Indian states and summarise additional state-government subsidies (over and above the central subsidy under PM Surya Ghar / MNRE programmes). Note: For many states, only central subsidy applies; some states provide extra support.
Rajasthan
| Central Subsidy | Residential | RWAs / GHS / Shared Facilities |
| ₹30,000 per kW for first 2 kW + ₹18,000 per kW for next 1 kW (total ₹78,000 for 3 kW) | ₹18,000 per kW for shared spaces, up to 500 kW |
| State Subsidy | ₹17,000 extra per household | Only for beneficiaries of Mukhyamantri Nishulk Bijli Yojana (100 Free Units Scheme); It is mandatory for beneficiaries of the scheme to install a solar system if their monthly consumption exceeds 150 units, to continue receiving this benefit. |
| Other customers get an Induction Cooktop and an incentive of ₹0.15 per unit for additional power exported to the grid under net metering. | ||
| More Information | RREC Rajasthan |
Delhi:
| Central Subsidy | Residential | RWAs / GHS / Shared Facilities |
| ₹30,000 per kW for first 2 kW + ₹18,000 per kW for next 1 kW (total ₹78,000 for 3 kW) | ₹18,000 per kW for shared spaces, up to 500 kW |
| State Subsidy | ₹10,000 per kW, max ₹30,000 per consumer | For RWA and GHS: Rs. 2,000 per kW for common facilities, including EV charging, up to 500 kW Capacity (@3 kW per house) with the upper limit being inclusive of individual rooftop plants installed by individual residents in the GHS/RWA . |
| The state also provides generation-based incentives (GBI). GBI payments will be valid for five years from the date of commissioning of the system for domestic, commercial and industrial consumers. | GBI: Residential: Up to 3 kW – ₹3/unitResidential: Above 3 kW up to 10 kW – ₹2/unitRWAs & GHS (up to 500 kW) – ₹2/unitCommercial & industrial (for the first 200 MW): ₹1/unit | |
| More Information | Delhi Solar Portal |
Uttar Pradesh:
| Central Subsidy | Residential | RWAs / GHS / Shared Facilities |
| ₹30,000 per kW for first 2 kW + ₹18,000 per kW for next 1 kW (total ₹78,000 for 3 kW) | ₹18,000 per kW for shared spaces, up to 500 kW |
| State Subsidy | ₹15,000 per kW, max ₹30,000 per consumer |
| More Information | UPNEDA |
Haryana:
| Central Subsidy | Residential | RWAs / GHS / Shared Facilities |
| ₹30,000 per kW for first 2 kW + ₹18,000 per kW for next 1 kW (total ₹78,000 for 3 kW) | ₹18,000 per kW for shared spaces, up to 500 kW |
| State Subsidy | In Haryana, state subsidy is income-based and subject to a family load of up to 2 kW. Subsidies are open to 1 lakh Antyodaya families on a first-come, first-serve basis. It is divided into two categories: Category 1: A family with an annual income of up to Rs. 180,000 – Rs. 25,000/kW or 40% of the billed amount per kW up to 2 kW (whichever is lower) Category 2: Family with annual income Rs. 180,000 – Rs. 300,000 – up to Rs. 10,000/kW or 20% of the billed amount per kW, up to 2 kW (whichever is lower). If the cost of the solar project is less than the combined state and central subsidies, then the state government subsidy will be limited to the difference between the project cost and the subsidy you get from the central government. To be eligible: An applicant must have a sanctioned load of up to 2 kW. The income levels of a family will be evaluated according to their Parivar Pehchan Patra (PPP). | |
| More Information | https://hareda.gov.in/about-department/solar-power-plant-on-social-sector-institute/ | |
Uttarakhand:
| Central Subsidy | Residential | RWAs / GHS / Shared Facilities |
| ₹33,000 per kW for first 2 kW + ₹19,800 per kW for next 1 kW (total ₹85,800 for 3 kW) | ₹19,800 per kW for shared spaces, up to 500 kW |
| State Subsidy | Rooftop solar 0 -1 kW | Rs. 23,000 per kW |
| Rooftop solar 1 – 3 kW | Rs 17,000 per kW | |
| Community solar (5-500 kW)For high rise societies and rooftop solar systems with shared ownership and residential consumers. | Rs 8000 per kW | |
| Solar village (50-200 kW) | Rs 15,000 per kW | |
| Behind-the-Meter (with Energy Storage) with <1 kWFocus on off-grid households located in remote areas or regions prone to grid disruptions | Rs 23,000 (without storage)Rs 28,000 (with storage) | |
| More Information | UREDA |
Himachal Pradesh:
| Central Subsidy | Resdential | RWAs / GHS / Shared Facilities |
| ₹30,000 per kW for first 2 kW + ₹18,000 per kW for next 1 kW (total ₹78,000 for 3 kW) | ₹19,800 per kW for shared spaces, up to 500 kW | |
| More Information | https://himurja.hp.gov.in/ |
Chandigarh:
| Central Subsidy | Resdential | RWAs / GHS / Shared Facilities |
| ₹30,000 per kW for first 2 kW + ₹18,000 per kW for next 1 kW (total ₹78,000 for 3 kW) | ₹18,000 per kW for shared spaces, up to 500 kW | |
| More Information | https://solar.chd.gov.in/ |
Punjab:
| Central Subsidy | Resdential | RWAs / GHS / Shared Facilities |
| ₹30,000 per kW for first 2 kW + ₹18,000 per kW for next 1 kW (total ₹78,000 for 3 kW) | ₹18,000 per kW for shared spaces, up to 500 kW | |
| More Information | https://www.peda.gov.in/ |
Jammu and Kashmir:
| Central Subsidy | Resdential | RWAs / GHS / Shared Facilities |
| ₹33,000 per kW for first 2 kW + ₹19,800 per kW for next 1 kW (total ₹85,800 for 3 kW) | ₹19,800 per kW for shared spaces, up to 500 kW | |
| State Subsidy | Recently, Kashmir Power Distribution Corporation Limited (KPDCL) announced that the UT Government is providing an additional subsidy of Rs. 3,000 for 1 kWp, Rs. 6,000 for 2 kWp & Rs 9,000 for 3 kWp plant, which takes the maximum ceiling of subsidy from Rs 85,800 earlier to Rs 94,800 for a plant up to 3 kWp under the Scheme. However, the Government has sanctioned Rs 27.07 crore for 44,000 beneficiaries of the Kashmir Division only. | |
| More Information | https://jakeda.jk.gov.in/index.aspx | |
Ladakh
| Central Subsidy | Resdential | RWAs / GHS / Shared Facilities |
| ₹33,000 per kW for first 2 kW + ₹19,800 per kW for next 1 kW (total ₹85,800 for 3 kW) | ₹19,800 per kW for shared spaces, up to 500 kW |
| State Subsidy | Rooftop solar 1 kw | Rs. 20,000 per kW |
| Rooftop solar 2 kw | Rs 40,000 | |
| Rooftop solar 3 kW | Rs 50,000Amount capped at Rs 50,000 for solar systems up to 10 kW. | |
| More Information | Ladakh Power Development Department |
With government subsidies and monthly electricity savings, most homeowners recover their investment in 3–5 years and then enjoy virtually free power for 20+ years!
However, before starting your solar journey, do keep some of the following points in mind
Application & Vendor Process:
Under the PM Surya Ghar: Muft Bijli Yojana, homeowners can easily apply through the national portal (pmsuryaghar.gov.in). You simply choose an empanelled vendor, apply via your DISCOM, and once feasibility is approved, the vendor installs your rooftop system. The subsidy is transferred directly to your bank account after inspection and approval.
Net-Metering Policies:
Net metering allows you to export surplus solar power back to the grid and receive credits on your bill, but rules differ by state. Always check your local DISCOM’s net-metering guidelines before installation.
Roof Suitability:
Every roof is unique. The system’s performance depends on roof condition, orientation, shading, structural strength, and local solar irradiation. A professional assessment ensures your system delivers the best yield and longest life.
Vendor Role & Quality Assurance:
Only MNRE/DISCOM-approved vendors can install under this scheme, ensuring standardisation, safety, and reliable after-sales support. This protects homeowners from poor-quality installations and ensures compliance for subsidy eligibility.
How Horizon Renewable Power Can Help
At Horizon Renewable Power, we are proud to be empanelled under the PM Surya Ghar scheme across 5 North Indian states and 2 UTs – Haryana, Rajasthan, Punjab, Himachal Pradesh, Uttar Pradesh, Chandigarh, and Delhi.
Our end-to-end services cover everything, from site assessment and documentation to installation, commissioning, and maintenance. We help you:
- Navigate the application and subsidy process seamlessly.
- Get quality-assured installations using MNRE-approved components.
- Enjoy long-term performance and maintenance support.
So if you’ve been considering solar, now is the best time. Evaluate your roof, check your eligibility, and join thousands of Indian households who are already enjoying free, clean power for life.
👉 Visit pmsuryaghar.gov.in to apply or get in touch with Horizon Renewable Power to make your solar journey effortless from day one.