Installing solar panels in India no longer feels like a far-fetched idea reserved for luxury villas or corporate towers. The shift toward rooftop solar is real, and it’s happening at every level—from modest homes in small towns to commercial buildings in crowded metros. A major reason for this growing trend? Government incentives and rebates bring down the cost of installation by a wide margin.
In this blog, we’re not going to oversell the concept. We’ll break it down practically—what schemes exist, how much you actually save, and why this could be the right time to make the switch. If you’re wondering whether solar fits your budget, lifestyle, or energy needs, keep reading.
Why Solar is Gaining Momentum in India
India has always had sunshine. But now, it has support too.
The idea of installing solar was earlier shut down by three words: “It’s too expensive.” That excuse doesn’t hold up anymore. In the last ten years:
- Panel prices have dropped by over 80%
- Efficiency has gone up
- And now, governments (central + state) are paying you to go solar
Add to that rising electricity bills, unpredictable grid failures, and growing climate awareness—suddenly, solar becomes a very reasonable decision.
PM Surya Ghar Muft Bijli Yojana: The Core Subsidy Scheme
Let’s start with the big one.
Launched in 2024, PM Surya Ghar Muft Bijli Yojana is a rooftop solar subsidy scheme targeting 1 crore households. The highlight? You get up to 300 free electricity units per month and a solid subsidy on system installation.
So if you’re installing a 3 kW system (standard for a 3–4BHK home), you might pay ₹1.2 lakh upfront. But with the subsidy, your actual cost drops to around ₹42,000–₹45,000. That’s a steep cut.
And no, this isn’t one of those government schemes wrapped in red tape. The process is online, and the money is directly transferred to your bank account after verification.
How to Apply?
Simple 5-step process:
- Register at pmsuryaghar.gov.in
- Get a quote from an MNRE-approved vendor
- Install the solar system
- Submit documentation
- Subsidy is transferred after inspection
No middlemen. No bribes. Just follow the steps and you’re sorted.
Net Metering: The Hidden Bonus Most People Miss
Now, let’s say your system produces more power than you need. What happens?
That extra electricity doesn’t go to waste. It goes back into the grid. And in return, your electricity provider gives you credits or direct compensation based on your state’s policy.
This setup is called net metering. It basically allows you to become a power supplier.
Imagine opening your electricity bill and seeing ₹0—maybe even a credit. That’s the kind of upside net metering offers. And most states in India now have net metering policies in place for systems up to 10 kW or higher.
State-Level Schemes That Go the Extra Mile
The central subsidy is great. But many states are doing even more to make solar affordable. Here’s a breakdown:
-
Delhi
- ₹2/unit cashback on exported energy
- Time-bound approvals through a single-window system
- Rooftop solar is now part of building code policies
-
Gujarat
- Extra ₹10,000–₹20,000 subsidy for homes
- GUVNL portal to monitor solar application status
- Rural homes see fast-track approvals
-
Rajasthan
- No electricity duty for solar energy consumers
- Rebates for group housing and welfare societies
- State pushing for rooftop solar in schools and hospitals
-
Tamil Nadu
- Additional capital subsidy for residential societies
- Net metering available up to 999 kW
- Targeted focus on tier-2 and rural cities
-
Maharashtra
- Subsidized loans through cooperative banks
- Fast installation approvals under MSEDCL
- Interest waivers on loans in select districts
These state-level incentives can reduce the system cost even further. And in some cases, they provide maintenance support or free inspections too.
Loans and Financing: Solar Without Burning Your Pocket
Let’s say even after the subsidy, you feel the upfront cost is a stretch.
That’s where solar loans come in. Several public and private sector banks now offer loans specifically for solar installations, including:
- SBI’s Green Home Loan
- IREDA-backed schemes
- NBFC loans through rooftop vendors
Key highlights:
- Interest rates between 4–7%
- Tenure from 3 to 10 years
- No collateral for loans up to ₹10 lakh
- EMI payments structured to match electricity bill savings
The idea is simple: use the savings from your electricity bill to repay your loan over time. It pays for itself.
Business and MSME Solar Perks: There’s More
Solar is not just for homeowners. If you run a business, tuition center, workshop, or even a dairy farm, there are additional tax benefits waiting for you.
- Accelerated Depreciation: 40% write-off in the first year
- GST Input Credit on all solar purchases
- Low-cost loans for agri-solar infrastructure (cold storage, pumps, etc.)
- Custom duty exemptions on select solar imports
If you operate mostly during daytime hours, your entire power load can be shifted to solar. That’s a straight cut in operational costs.
Savings kick in from Day 1. The break-even period is usually 3–4 years, and post that, you’re basically using free power for the next 20+ years.
If you’re still figuring out the best system for your home setup—whether flat roof or slanted, shaded or sun-facing—this solar panel guide for homes in India is packed with real examples and tips.
Will Solar Increase My Property’s Value?
Yes, and quite noticeably.
Homes with solar installations attract eco-conscious buyers. Studies in urban markets show that homes with functioning rooftop solar setups:
- Sell 15–20% faster
- Get better price offers
- Are seen as modern, low-maintenance homes
Especially in cities where electricity costs are rising fast, buyers are happy to pay more for homes that come with zero monthly bills.
What’s Coming Next?
The government isn’t stopping here.
What’s in the pipeline:
- Special incentives for rental homes and tenants
- EV-charging-ready solar kits
- Floating solar schemes in rural districts
- Unified national app to track solar applications
India’s rooftop solar target is 40 GW, and we’ve just crossed the halfway mark. More support is expected in upcoming budgets.
Conclusion:
Solar in India is no longer “too early” or “too costly.” It’s right now. If you’ve got 100 sq. ft. of rooftop space and a power bill that’s been burning a hole in your pocket, it’s time to act.
Between government subsidies, state rebates, net metering, and easy financing—solar power makes financial sense.
And if you’re still thinking about it, the sun isn’t charging you anything. Why not make it work for you?
