Solar power is no longer an urban luxury—it’s a serious energy alternative, and Indian states are finally treating it like one. But here’s the twist: not all solar subsidies are built the same. Depending on where you live, the financial support, approval process, and savings can look drastically different.
So if you’re planning to go solar and wondering where you stand on the subsidy spectrum, this detailed state-wise comparison breaks it all down.
Let’s dig into how key Indian states are incentivizing rooftop solar—and which ones are giving you the best bang for your buck.
The National Push: What’s Uniform Across States
Before we zoom into individual states, there’s one constant—the PM Surya Ghar Muft Bijli Yojana, launched by the central government in 2024.
Here’s the basic structure:
- ₹30,000 subsidy for a 1 kW system
- ₹60,000 for 2 kW
- ₹78,000 for 3 kW and above
- 300 units of free electricity every month
It’s a central scheme, available to all residential homes across India. However, what each state adds on top of this is where things get interesting.
Gujarat: Consistent Front-Runner
Gujarat has long been ahead of the curve when it comes to solar. And it shows.
Apart from the central government subsidy, the state also offers an additional ₹10,000–₹20,000 depending on system size and consumer category. This pushes the effective cost of solar panels down significantly—especially for small to mid-size homes.
For example, in Gujarat, if you install a 3 kW solar panel system, you’re not just relying on central aid. You also receive an extra state subsidy, which can bring the total cost down to nearly ₹45,000–₹55,000 depending on the area and vendor pricing.
Other Gujarat highlights:
- Easy approvals through the GUVNL portal
- Rural homes are prioritized for fast installation
- Net metering policy in place with clear unit credit system
Verdict: Excellent financial support, fast systems, and predictable ROI.
Delhi: Strong Performance-Based Incentives
Delhi’s solar scene is picking up. While the capital doesn’t offer a large direct state subsidy, it makes up for it by offering performance-based incentives.
Here’s the catch:
- You get ₹2/unit exported to the grid as cashback
- Net metering up to 500 kW is permitted
- There’s also a single-window clearance mechanism under DERC
The city focuses more on energy credits rather than upfront cost reduction. So it works best for households that consume less and export more—you literally get paid for your unused sunlight.
Verdict: Not great for reducing purchase cost, but excellent for earning post-installation.
Rajasthan: One of the Most Aggressive in Northern India
Rajasthan has been quietly building one of the most solar-supportive ecosystems in the country. Despite being known for utility-scale projects, it offers plenty for residential users too.
What you get:
- Complete exemption from electricity duty
- Special incentives for group housing societies
- Rooftop solar systems are now being integrated into public buildings, hospitals, and schools
While there isn’t a fixed additional cash subsidy like Gujarat, Rajasthan offers logistical and policy benefits that simplify installation, speed up approvals, and reduce monthly costs over time.
Verdict: More operational support than monetary, but great for long-term savings.
Maharashtra: Focused on Rural & Cooperative Solar Projects
Maharashtra doesn’t offer flashy rebates, but it does have a strong loan infrastructure. Through partnerships with cooperative banks and district development boards, interest-free loans are available in select rural districts.
Also:
- Net metering is allowed for capacities up to 1 MW
- Some districts waive interest on solar loans
- Agro-based solar projects get priority in installation and inspection
The lack of a fixed subsidy might feel like a letdown, but if you’re a rural resident or running a small business, the financing benefits are substantial.
Verdict: Best for rural setups and MSMEs. Not ideal for urban homeowners seeking heavy upfront discounts.
Tamil Nadu: Slow but Steady Progress
Tamil Nadu has taken a different route—less direct cash subsidies, and more structural support.
Here’s what’s in place:
- Capital incentives for solar setups in group housing societies
- Integration of rooftop solar into Smart City planning
- Full-fledged net metering system, applicable up to 999 kW
The approval process is still a little slow compared to Gujarat or Delhi, but once installed, systems run smoothly and deliver consistent performance.
Verdict: Decent policy, average execution. Good for urban apartments and shared rooftops.
Other States Worth Mentioning
- Haryana: Offers ₹6,000/kW state subsidy for the first 3 kW
- Punjab: Additional subsidy for SC/ST households and agriculturists
- Karnataka: Smooth rooftop application process, especially for net metering
- Kerala: Promoting solar via the Soura project, although with limited subsidy funding
Each of these states is improving, but the variation in execution often depends on the DISCOM in charge and vendor networks.
Summary Table: State vs Subsidy Comparison
| State | Extra State Subsidy | Net Metering | Special Perks |
| Gujarat | ₹10k–₹20k | Yes | Online GUVNL portal |
| Delhi | No direct subsidy | Yes | ₹2/unit cashback for exports |
| Rajasthan | No fixed amount | Yes | Electricity duty waived, group housing |
| Maharashtra | No subsidy | Yes | Interest-free loans in rural districts |
| Tamil Nadu | Capital incentive | Yes | Smart city integration, group housing |
| Haryana | ₹6,000/kW (up to 3kW) | Yes | Quick DISCOM clearances |
What Should You Consider Before Choosing?
Don’t just chase the highest subsidy. Look at:
- Ease of application in your state
- Vendor reliability (check if MNRE-approved)
- Net metering clarity and bill adjustments
- Long-term maintenance or AMC offers
- Local DISCOM cooperation (this is a big one)
Sometimes a smaller subsidy + faster execution beats a larger promised amount that takes six months to approve.
Conclusion
India’s rooftop solar growth story is strong—but it’s still highly state-driven. Two homes in different states could install the same system and pay drastically different amounts depending on the policies in place.
That’s why comparing subsidies isn’t just useful—it’s essential.
Gujarat currently leads the pack in actual savings, while Delhi and Rajasthan focus more on operational benefits. Maharashtra shines for rural financing, and Tamil Nadu is catching up with housing society incentives.
Bottom line? If you’ve got a rooftop, don’t wait around for a perfect scheme. The sun’s shining whether you use it or not. Might as well let it chip away at your power bills.