Subsidy is provided to customers via MNRE and state renewable departments.

As per the current guidelines set by MNRE , CFA (Central Finance Assistance) subsidy for Grid-Tie Solar system is as following :

MNRE Subsidy Applicable for
30% max of benchmark cost   General Category States:All other States/UTs not covered under special states
70% max of benchmark cost  Special Category States/Islands:North Eastern States including Sikkim, Uttarakhand,Himachal Pradesh, Jammu & Kashmir and Lakshadweep, Andaman & Nicobar Islands

Present benchmarking cost by MNRE is as follows : 

Rooftop capacity Benchmark cost (INR/W)
up to 10kW 70
>10-100kWp 65
>100-500kWp 60

The subsidy is available only to these categories:

Type Details
Residential All types of residential buildings, including group housing.
Institutional Schools, health institutes including medical colleges & hospitals, universities, educational institutes, etc
Social Sector

Community centers, welfare homes, old age homes,orphanages, common service centers, common workshop for artisans or craftsman,facilities used for the community. Trusts/NGO/Voluntary organizations/ training institutes,any other establishments for common public use, etc.

Procedure to get MNRE Subsidy:

  • Step-1 Submit a project report with 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
  • Step-2 MNRE evaluates your project on technical and financial points
  • Step- 3 After your project is approved by MNRE, Open tenders are invited by your state nodal agency 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 Subsidy amount is released to channel partner directly from MNRE
  • Step-7 You will be responsible for payment of 70% of the system cost, if you chose to finance your solar plant, you may work with you bank to procure financing 70% of the system cost.


Can I get subsidy for solar rooftop installation without MNRE channel partner?

No one can avail subsidy for a Solar PV power plant without involving authorized Channel partner

What are other fiscal incentives available for Rooftop Solar Systems?

There are provisions of concessional import duty/excise duty exemption, accelerated depreciation and tax holiday for setting up of grid connected rooftop power plants.

Which all States/UTs have issued regulations for netmetering/gross metering ?

20 State/UT Regulators from Andhra Pradesh, Chhattisgarh, Delhi, Gujarat, Haryana,Karnataka, Kerala, Odisha, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh, Uttarakhand and West Bengal, Andaman & Nicobar, Chandigarh, Dadra & Nagar Haveli, Daman & Diu, Lakshadweep, Pondicherry and Goa