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Guide to Government Subsidies for Residential Rooftop Solar Plants in India

The MNRE has announced a substantial revision in the CFA for grid-connected rooftop solar power systems under Phase II of the Grid-Connected Rooftop Solar Program. Delve into the key aspects of this announcement.

MNRE substantially raises Solar Rooftop Installation Subsidies for Homes.

In a remarkable stride towards sustainable energy solutions, the Ministry of New and Renewable Energy (MNRE) has announced a substantial revision in the Central Financial Assistance (CFA) for grid-connected rooftop solar power systems under Phase II of the Grid-Connected Rooftop Solar Program. This initiative marks a pivotal moment in India's journey towards harnessing clean energy. Let's delve into the key aspects of this announcement and understand how it paves the way for a greener and more sustainable future.

Understanding the Subsidy Structure

The subsidy program, administered by the Grid Connected Rooftop Solar Division, categorizes residential solar plants based on their capacity. For installations up to 3 kW, homeowners in General Category States/UTs are eligible for a subsidy of Rs. 18,000 per kW, whereas those in Special Category States/UTs can avail Rs. 20,000 per kW. As the capacity increases to 3 kW and up to 10 kW, the subsidy follows a tiered structure, providing Rs. 18,000 per kW for the first 3 kW and Rs. 9,000 per kW thereafter, with a cap at 10 kW. Special Category States/UTs receive Rs. 20,000 per kW for the initial 3 kW and Rs. 10,000 per kW thereafter, also capped at 10 kW.

Notably, Resident Welfare Associations (RWA)/Group Housing Societies (GHS) are entitled to a subsidy of Rs. 9,000 per kW for common facilities up to 500 kWp, with a similar tiered structure as mentioned above. This encourages collective efforts towards sustainable energy solutions in residential communities.

Special Category States/UTs and Applicability

The subsidy program extends its support to Special Category States, encompassing North Eastern States, Sikkim, Uttarakhand, Himachal Pradesh, and UTs of Jammu & Kashmir, Ladakh, Lakshadweep, and Andaman & Nicobar Islands. Homeowners in these regions enjoy slightly higher subsidies, emphasizing the government's commitment to promoting renewable energy adoption in remote and ecologically sensitive areas.

It's essential to note that the subsidy rates mentioned are applicable for claims submitted on the National Portal on or after January 5, 2024. This ensures that the subsidy program aligns with the latest policies and technological advancements in the solar energy sector.

Subsidy Structure by National Portal for Rooftop Solar
Source - https://solarrooftop.gov.in/pdf/CFA%20structure2024.pdf

Comparison - Previous and Updated subsidies
Table showing Revised rates and their difference

Mandatory Conditions and Certification

To ensure the quality and origin of the solar panels/modules, the government mandates the use of indigenously manufactured products for rooftop solar installations. This stipulation supports the 'Make in India' initiative and ensures that both solar cells and modules are produced within the country. Homeowners must obtain certification from their chosen vendor confirming the use of locally manufactured solar panels/modules.

Visit the APPROVED LIST OF MODELS AND MANUFACTURERS (ALMM) for a detailed List of Approved Models and Manufacturers for Solar PV Modules.

Additionally, the calculation of the Central Financial Assistance (CFA)/subsidy is based on the total solar module capacity, solar inverter capacity, or the capacity approved by the DISCOM, whichever is lower. This approach ensures a fair and transparent allocation of subsidies based on the actual installation requirements.


In conclusion, the government's initiative to provide subsidies for residential rooftop solar plants represents a crucial step towards a sustainable and eco-friendly future. The financial incentives not only make solar energy more affordable for individual homeowners but also promote community-driven adoption through RWAs and GHS. As we move forward, it is imperative for homeowners to stay informed about the latest guidelines and adhere to the mandatory conditions to avail themselves of the Central Financial Assistance. By harnessing the power of solar energy, households contribute to a cleaner environment while enjoying long-term economic benefits. The journey towards a greener and more sustainable future begins on the rooftops of our homes, powered by the sun.

For application to rooftop solar visit National Portal for Rooftop Solar OR Contact us at - gosolar@periurja.com

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