Solar energy adoption in India is rising rapidly — and one of the biggest drivers behind this growth is the range of solar subsidies, incentives, and tax benefits offered by the central and state governments. As we enter 2026, India's solar policy landscape continues to evolve, making clean energy more affordable for residential, commercial, and industrial users.
In this comprehensive, state-wise guide to solar subsidies in India 2026, we break down:
- Federal schemes and benefits
- State solar subsidy programs
- Tax incentives & GST exemptions
- How to apply for solar subsidies
- Tips to maximize your savings
Whether you're considering a rooftop solar system, a commercial solar project, or an agricultural solar pump, this guide will help you understand every financial advantage available today.
Why Solar Subsidies Matter in 2026
Solar systems require upfront investment — and that is where government subsidies can make a significant difference. These incentives:
- Reduce initial cost of solar panel installation
- Improve return on investment (ROI)
- Make solar power affordable for homes & businesses
With rising energy costs and sustainability goals, solar subsidies are now more relevant than ever before.
Central Government Solar Subsidies & Incentives (India 2026)
1Residential Solar Rooftop Subsidy
The Government of India continues to offer incentives on rooftop solar installations for households.
Key highlights:
- Subsidy available up to 20–40% of the system cost
- Eligible for systems typically in the 1 kW – 10 kW range
- Approved through DISCOM / SECI
- Available only on grid-connected systems with net metering
💡 This subsidy reduces the upfront cost drastically and shortens payback period.
2Accelerated Depreciation for Businesses
Commercial and industrial entities installing solar systems can claim accelerated depreciation (AD).
Benefits include:
- Up to 40% depreciation in the first year
- Reduces taxable income
- Boosts investment benefits for large solar projects
3GST Reduction & Exemptions
The Goods and Services Tax (GST) charges on solar equipment have been significantly lowered in recent years, making solar installations even more affordable.
State-Wise Solar Subsidies in India 2026
Below is a breakdown of subsidies and incentives available in each major state.
Madhya Pradesh
- Residential Solar Subsidy: Eligible households can receive a 30% subsidy on rooftop solar costs
- Commercial Solar Incentives: Special rebates for businesses installing systems over 50 kW
- Net Metering: Available in most urban DISCOM areas
Key cities covered:
Indore, Bhopal, Ujjain, Gwalior, Jabalpur, Sagar, Rewa, Satna
Maharashtra
- Residential Solar Subsidy: Up to 25%
- Solar Water Pump Subsidy: For farmers and irrigation
- State Renewable Fund Benefits
Gujarat
- Pioneer solar state with high incentives
- Subsidy up to 30% for rooftop solar
- Special MSME incentives
Rajasthan
- Desert state with high solar potential
- Subsidy up to 30% plus special tariffs for large solar plants
Tamil Nadu
- Rooftop subsidy available through TANGEDCO
- Priority approvals for commercial solar plants
Karnataka
- Solar subsidy for residential users
- Focus on solar-powered agriculture
Delhi
- High subsidy for rooftop solar
- Benefit through net metering and solar purchase incentives
Note: Subsidy amounts are subject to policy updates and may vary according to the latest government notifications in 2026. Always verify the current rates with your local DISCOM or solar service provider before installation.
How to Apply for Solar Subsidies in India (2026)
📍 Step-by-Step Process
Choose an Approved Solar Vendor
Only government-approved solar companies can process subsidy claims.
System Design & Quotation
Get a detailed system design and official quote.
Submit Application to DISCOM
Your solar provider will help you file the subsidy application.
Government Approval & Installation
Once approved, your system is installed and verified.
Certification & Reimbursement
After installation, the subsidy amount is reimbursed per guidelines.
Tax Benefits for Solar Investments
Solar isn't just about subsidies — it also offers strong tax advantages:
Depreciation Benefits
Businesses can claim higher depreciation on solar assets in the first year.
Lower GST
Solar equipment enjoys a lower GST slab, reducing overall costs.
Net Metering & Solar Credits
Nearly every state now offers net metering, which lets you feed unused solar electricity back into the grid.
This results in:
- Lower electricity bills
- Credit accumulation for nighttime use
- Enhanced ROI
How Shivika Renewable Can Help You
At Shivika Renewable, we specialize in end-to-end solar energy solutions for residential, commercial, and utility-scale projects. With hands-on expertise across installations ranging from 3 MW to large-scale capacities of up to 1000 MW, we deliver high-quality, reliable, and cost-effective solar solutions.
Subsidy & Incentive Expertise
Our team helps you navigate all government subsidies, tax benefits, and incentive programs to maximize your savings
State-Wise Knowledge
Comprehensive understanding of state-specific solar policies and net metering regulations across India
Complete Documentation
Assistance with all paperwork, approvals, and documentation required for subsidy claims and net metering
Approved Vendor
Government-approved solar installer ensuring eligibility for all subsidies and benefits
Final Thoughts — Solar Savings in 2026
Solar power continues to be one of the smartest energy investments available in India today. With expanding subsidy programs and tax incentives, 2026 might be the best year yet to go solar.
Whether you are a homeowner, business owner, or farmer, government policies are crafted to make solar affordable, profitable, and long-lasting.
👉 Ready to go solar in your city? Contact a trusted solar installer today and explore subsidies in your area.
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