Government Solar Incentives and Tax Credits in 2026

The cost of installing solar has become more manageable for many Indian households thanks to government support for rooftop solar. In 2026, the PM Surya Ghar: Muft Bijli Yojana continues to encourage residential consumers to install rooftop solar and generate their own electricity.

⚡ What Is PM Surya Ghar: Muft Bijli Yojana?

The scheme was introduced to increase rooftop solar adoption across India, with a target of reaching one crore households. Eligible residential consumers with a grid-connected electricity connection can apply through the national portal and choose an appropriate installation from empanelled vendors.

⚡ How Much Solar Subsidy Can You Get?

The central financial assistance is based on the size of the rooftop solar system. Under the current structure, households can receive up to ₹30,000 for 1 kW, ₹60,000 for 2 kW, and ₹78,000 for 3 kW or higher. The central subsidy is capped at 3 kW.

⚡ Who Can Apply For The Scheme?

The PM Surya Ghar scheme is aimed at residential electricity consumers across India, including rural households, provided they have a grid-connected electricity connection with their local DISCOM. Applications are made through the National Portal for the scheme.

⚡ How The Subsidy Makes Solar More Affordable

The subsidy reduces the initial amount a household needs to spend on a rooftop solar installation. In addition, the government has introduced concessional financing options to make solar more accessible to households that may find the upfront investment difficult.

⚡ Solar Savings Go Beyond The Subsidy

Government assistance is only one part of the financial benefit. Once installed, a rooftop solar system can generate electricity for the household and reduce the amount of power purchased from the grid. Depending on electricity consumption, solar generation, tariffs, and system size, this can lead to lower electricity bills over the years.

⚡ Check Your State And DISCOM Rules

While the central subsidy is provided under the national scheme, the installation process, approvals, metering arrangements, and other requirements can depend on the local electricity distribution company. It is therefore important to check the latest requirements before choosing a vendor or starting an installation.

⚡ Is 2026 A Good Time To Consider Solar?

With financial assistance, financing options, and growing adoption of rooftop solar, 2026 can be an attractive time for eligible households to explore solar. The best system, however, depends on your electricity usage, available roof space, budget, and local DISCOM requirements.

Solar incentives can reduce the initial investment, but choosing the right system and installer is just as important for getting reliable long-term value from your installation.