How much subsidy from Government of India is being offered for going Solar?

While other countries around the world look forward to seeing the sun, India receives an abundance of sunlight. This is the most important criteria for solar energy and our country already has it all. The Indian government has started to make strides towards solar energy. The government has multiplied its target and aims to achieve 100 GW of solar panel capacity by 2022.

The Indian Ministry of New and Renewable Energy (MNRE) has introduced a number of Central Financial Assistance (CFA) schemes that promote solar energy in India to achieve its ambitious target of 100 GW. The support is aimed at providing subsidies to enterprises that are contributing to growth.

Scheme: Solar Parks and Ultra Mega Solar Power Projects

  • CFA totaling INR 2 M/MW, or 30% of a project’s cost, including grid–connectivity costs, is available.
  • An additional INR 2.5 M per plant is available for the preparation of Detailed Project Reports (DPRs) and conducting surveys, etc.

Scheme: 300 MW of solar PV for defense establishments and paramilitary forces

  • Financing is made available through Viability Gap Funding (VGF), which is provided as a capital subsidy. Successful bidders are selected based on the lowest bids for these funds.
  • Considering technology upgrades and economies of scale, the upper limit of VGF was revised on February 2017, to INR 11 M/MW for all projects irrespective of size.

Scheme: Installing grid-connected solar PV power projects under Phase-II, with VGF support via SECI

  • Batch-I (750 MW) – VGF is limited to 30% of a project’s cost or INR 25 M/MW
  • Batch-III (2000 MW) – The upper limit for VGF is kept at INR 10 M/MW for the open category and INR 13.1 M/MW for projects in the DCR category
  • Batch-IV (5000 MW) – The upper limit for VGF is kept at INR 10 M/MW for the open category and INR 12.5 M/MW for projects in the DCR category
  • Batch-V (1000 MW) – for Central Public-Sector Undertakings

Schemes for grid-connected Rooftop

CFA is 30% of the benchmark cost for general and 70% CFA for the residential, social and institutional sectors. No subsidy for the commercial & industrial sector.

Schemes for development of grid-connected PV plants on canal banks and canal tops

Financial support of INR 30 M/MW or 30% of the project cost, for canal top projects and INR 15 M/MW or 30% of the project cost, for canal bank projects. Total CFA of up to INR 2.25 billion for 100 MW to be disbursed over a period of a maximum of two years, with 1% service charge to SECI


Off-Grid schemes: PV lighting systems and power plants, solar pumps

A. Lighting systems

  • Home lights/lanterns/streetlights with lead acid batteries: Benchmark Cost = INR 340/W; CFA = INR 102/W
  • Street lights with lithium ferro phosphate batteries: Benchmark Cost = INR 475/W; CFA = INR 142.5/W

B. Power packs with a battery bank

  • Up to 300 W: Benchmark Cost = 200/W; CFA = INR 60/W
  • 300 W to 1 kW: Benchmark Cost = INR 135/W; CFA = INR 40.5/W

C. Solar Power plants with a battery bank

  • 2 VAh/W and capacity up to 10 kW: Benchmark Cost = INR 135/W; CFA = INR 40.5/W

D. Solar Pumps from 3 HP up to 5 HP

  • Up to 3 HP (DC): Benchmark Cost = INR 120,000/HP; CFA = INR 30,000/HP
  • 3HP to 5 HP (DC): Benchmark Cost = INR 95,000/HP; CFA = INR 19,000/HP
  • Up to 3 HP (AC): Benchmark Cost = INR 100,000/HP; CFA = INR 25,000/HP
  • 3HP to 5 HP (AC): Benchmark Cost = INR 85,000/HP; CFA = INR 17,000/HP


The Government of India has provided many subsidies on solar power, and companies are benefiting from this. However, the road to bring these subsidies to pass is quite rough and hectic. Despite that, growth remains relatively undiminished, and India’s achievements are well known.



124 Responses

  1. Dear Sir/ Madam

    Vidya Vihar Institute of Technology, Purnea, Bihar 854301 is a private engineering college affiliated to AKU, University,Patna under AICTE. we want to install roof Solar Panel. what is the process to get subsidy for private institution.

    thanking you.

    with regards.

    Dr. Manish Kumar

    1. Hi we want to start solar project for commercial use for my village araund 700 house / family what is the cost of project

  2. मैं अपने जमीन पर सोलर पैनल सब ग्रिड लगाना चाहता हूं

    1. मैंअपनी छत पर सोलर पेनल की कुर्सियां लगाना चाहता हूँ

  3. Respected sir/madam
    I’m karan Singh I belong to tanda rampur uttar pradesh I belong to a rural area and I am a farmar. I want to say that due to the lack power connection and light problem my crop yields is poor. Given this problem. So I kindly request to that I want to installation of solar panel facility at my farm so I request to you that you fully try to installation of solar panel at my farm.
    Thank you

  4. I am having 2 acres of land in karnataka near bangalore. I would like to know the possibility of setting up Solar piwer farm. can you givebdetails.

  5. Dear Sir
    This Smt.Prabhavathi fro Hosadurga, Karnataka. In our agricultural land electricity problem is so much. I would like to instal solar power system for agricultural purpose( both AC and DC system interconvertable). I require 5HP capacity motor and panels. Kindly let me know the details under Central Govt.Scheme

  6. i want to dealership of vikramsolar at wardha maharastra . i have shop at market area and four acer land attache to city. what arte your registation chargge. my no is 9175501817 9420145985

  7. This is interesting information for us, because this solar panel we can use it at our home, by using solar company in allahabad we get exact saving idea.

  8. I was looking for this information relating to such government free solar panel scheme mnre guidelines for solar power. You have really eased my work by posting this article, loved your writing skill as well. Please keep sharing more, would love to read more from you!

  9. Hi – I would like to start a solar panel and solar cell manufacturing unit in India. Please let me know whether you can help me with this.

  10. Dear Friend, With due amount of love and respect, I Mr. Sudip Chakma Coordinator of Mbrs School of underprivileged children would like to express our needs of solar panels/lights for our school and the children.

    Many villages in Chakma areas of Mizoram have erratic or no regular supply of electricity. Even the villages that have electricity sometimes do not have power supply for days at a time. We run a school with hostel is facing a great problems while current cut off and our students have to stay without studying at night for long time. Solar power can reduce dependence on unsafe kerosene lanterns. Mahabodhi Residential School works in these areas and helps poor children by providing the quality education. When you support this program, you will be bringing a student out of darkness to light.

    Please support our important cause by providing free solar panels/lights and so that our needy students can be free from darkness at night.

    Yours sincerely,
    Sudip Chakma
    Mahabodhi Residential School,
    Tuichawng, Lunglei District, Mizoram, India

    Please visit our website for more details.

  11. I am Purushottam from sehore, mp
    I want to install a solar power plant of 5 MW in my farm land of 5 acres
    Please guide me for this

  12. Sir 5kw solar panels ke jarurat hai B L Yadav inter college kukudhi kaundhiyara prayagraj UP sabsides ke Leya kya Karna padega

  13. Hey, thanks for sharing I want to learn more about Ap & Telangana govt Subsidies for solar panels for domestic homes.
    please give information about that.


  14. Hi sir i am Amon Makunga from Khuninglung Village Chandel District, manipur,
    A rural village having 30 househole, I on behalf of Khuninglung member wants to install solar panel along roadside, as our electricity condition is not that good.
    So i request you to take consider this,

  15. What will be the cost of residential installment and all things along with the info of government subsidy?

  16. This is beneficial for home solar energy sys
    I want stable at my home. But I don’t know how to achieve benefits and how many amount have to spend by us on intallation of 150 wt X 3 Panel . I live in Balrampur UP Rural area.


  17. im from west bengal . i want to set up a 5hp solar pump at my 5.6 acar agri land om immediate basis. please quote you rate (with breakup). including all.

  18. im from west bengal . i want to set up a 5hp solar pump at my 5.6 acar agri land om immediate basis. please quote you rate (with breakup). including all. cont 6295034431.

  19. सर मेरा अपना मुर्गी फॉर्म है और मुझे बरसात के समय में तथा सर्दियों के समय में लाइट की बहुत दिक्कत परेशानी होती है कहीं-कहीं बार एक हफ्ते तक लाइट नहीं आती है जिससे कि मेरे बहुत सारे चूजे मर जाते हैं और मुझे बहुत नुकसान चलना में पड़ता है साथ में ही मेरे पास कुछ बंजर जमीन पड़ी हुई है जिसमें में सोलर प्लांट लगवाना चाहता हूं जिससे कि मुझे मुर्गी पालन में कोई दिक्कत न हो और साथ ही जो बिजली हो वह गांव के लिए उपयोग में लाई जाए हमारे गांव में लगभग 200 परिवार निवासित हैं!!

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