The government of India actively encourages its citizens to make use of solar energy in order to reduce the country’s reliance on fossil fuels while also reaping the benefits that solar power has to offer in terms of its positive effects on the economy and indeed the environment. However, the majority of people are also still apprehensive about converting to solar power since there is a lack of information among people about just the benefits of solar energy, and there are persistent stereotypes about the enormous upfront installation cost.

People who want to install rooftop solar installations can take advantage of solar panel subsidies in India made available by both the federal government and state governments. Solar energy is by far the most viable option for a country like India, which has a very high overall need for electricity. The installation of solar rooftop systems in residential buildings not only helps residents save money on their electricity bills but also contributes to the reduction of their properties’ overall carbon footprints. In addition to this, when using a solar system that is linked to the grid, the user has the ability to sell any extra power back to the grid.

As per the to the Ministry of New and Renewable Energy (MNRE), the Central Government pays thirty percent of the benchmarked cost of installation for roof PV systems, but this is only available in certain states. In contrast, a solar panel subsidy of seventy percent of the standardized construction costs is made available to special category states of the North, which also include Uttarakhand, Himachal Pradesh, Jammu, and Kashmir, as well as Uttar Pradesh. By the conclusion of the fiscal year 2021-22, the goal number of solar rooftop installations ought to be a collective 8 lac users, as well as the solar panel subsidy will be supplied correspondingly.

Solar rooftop systems with capacities up to 3 kW ought to be eligible for a state subsidy of 40 percent; systems with capacities between 3 kW and 10 kW should be eligible for a state subsidy of 20 percent. These systems will be built and authorized by private home users. Regardless of whether or not a load of customers is sanctioned, a solar rooftop system can be erected if its capacity is greater than one-kilowatt direct current (DC). There is a chance that a subsidy on a solar panel may have a maximum capacity of 10 kW, which would be capped at that level.

The cost of installing solar panels

The cost of installing solar energy systems is very variable and is dependent on the type of installation, equipment, and solar panels that are used. Typically, it falls somewhere in the range of 40,000 to 60,000 rupees. In the event of very big installations, it may even extend beyond this. Although the out-of-pocket expense might appear to be substantial at first, it winds up being cost-effective in the long term since it lowers monthly power costs and lowers overall carbon footprints. Therefore, before you put solar panels on your roof, you should first determine how much money you will be able to spend on the installation. Then, you will be able to pick the equipment that best suits both your requirements and your financial constraints. It is best to go for things that fall somewhere in the middle of the price spectrum.

If you want to use a battery as a backup, then an additional Rs 25,000 will indeed be added to the total price of this purchase. On the other hand, there are various incentives that can lower the cost of this.


The Ministry of New and Renewable Energy (MNRE) provides a solar panel subsidy to consumers in order to encourage the installation of photovoltaic (PV) systems as part of its mission to promote the use of renewable energy. A subsidy of up to 30% is available for the installation of rooftop solar in commercial and institutional buildings. So, you must consider getting a solar panel installed at your facility.

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