Government solar subsidy guide — claim up to 40%

Government subsidies can reduce your solar system cost by 20–40%, turning an already-good investment into an outstanding one. But the application process can feel bureaucratic and confusing. This guide cuts through the noise.

The Central Government subsidy (PM Surya Ghar)

The flagship program is PM Surya Ghar: Muft Bijli Yojana, launched in 2024 and expanded in 2025–26. It provides a direct subsidy on rooftop solar installations for residential consumers.

Subsidy rates (current as of 2026):

Example: A 5 kW system would receive ₹54,000 in central subsidy, bringing the effective cost down from roughly ₹3,50,000 to under ₹3,00,000.

Eligibility: - Indian residential consumer - Must have a suitable rooftop - Must use panels from the ALMM (Approved List of Models and Manufacturers) - Installation must be done by an empanelled vendor

State-level subsidies

Several states offer additional subsidies on top of the central program:

• •Gujarat: Additional 20% state subsidy (capped at ₹20,000)
• •Kerala: 10% top-up subsidy for systems below 5 kW
• •Tamil Nadu: ₹12,000 flat incentive for systems above 3 kW
• •Maharashtra: Property tax rebate of 5–10% for solar-equipped homes

Check your state's electricity regulatory commission website for the latest rates, as these change annually.

Net-metering — the invisible subsidy

Net-metering is arguably more valuable than the upfront subsidy. When your solar system exports excess energy to the grid, your meter runs backwards. You only pay for the net energy you consume.

Typical savings with net-metering: - Summer months: credit of ₹2,000–₹5,000 (surplus generation) - Winter months: small debit (lower generation, same consumption) - Annual net: 70–90% reduction in electricity bill

To qualify for net-metering: 1. Apply to your distribution company (DISCOM) before installation 2. Use a certified installer who handles the paperwork 3. Install a bidirectional meter (your DISCOM will provide this) 4. System size cannot exceed your sanctioned load

The application process — step by step

1. Register on the National Portal (pmsuryaghar.gov.in) with your electricity consumer number and mobile number.
2. Apply online — select your DISCOM, enter system details, and upload required documents (Aadhaar, latest electricity bill, rooftop photo).
3. Get approval — DISCOM typically approves within 15–30 working days.
4. Choose an empanelled vendor — the portal lists approved installers in your area. (BrightBeam Technologies is empanelled in 12 states.)
5. Installation — vendor installs the system and uploads completion photos.
6. Inspection — DISCOM inspects the installation and installs the bidirectional meter.
7. Subsidy disbursement — the subsidy amount is credited directly to your bank account within 30–60 days of inspection.

Common pitfalls: - Applying after installation — you must apply BEFORE the system is installed - Using non-ALMM panels — the subsidy only applies to approved models - Not matching the vendor list — only empanelled vendors qualify - Missing the DISCOM inspection window — schedule promptly after installation

Accelerated depreciation for businesses

If you are a business or commercial entity, you can claim 40% accelerated depreciation in the first year under Section 32 of the Income Tax Act. This effectively reduces the after-tax cost of the system by your tax rate × 40%.

For a company in the 30% tax bracket installing a ₹10 lakh system, that is a tax saving of ₹1.2 lakh in year one.

The bottom line

Between central subsidies, state top-ups, net-metering credits, and tax benefits, the effective cost of going solar in 2026 can be 30–50% lower than the sticker price. The key is applying early, using approved equipment, and working with an empanelled installer who handles the paperwork end-to-end.

That is exactly what BrightBeam does — we handle the entire subsidy application as part of every residential installation. Zero extra paperwork for you.