Government policies for solar installation Rooftops in India

Government policies for solar installation Rooftops in India

The land of India has been bestowed with abundant solar energy annually. Suppose it’s to be calculated then approx. Of 5000 trillion kWh of total energy is showered on our country. This gives us a perfect opportunity to utilize this energy for various benefits monetarily, environmentally, and health side. Using this green energy to harvest by solar installationon the rooftop can helps us to save major cash on our electricity bills.

This energy can be a great advantage for people to enjoy various benefits like off-grid, on-grid, and hybrid solar rooftop systems.

The government has taken steps and action regarding the initiative and a lifestyle based on this renewable energy source. 

Adopting this method can prevent people from getting affected by breathing and lung problems by continuously breathing in an environment where incomplete burn carbon particles float around due to burning fossil fuels and firewood.

It provides various employment opportunities and even methods of obtaining extra cash using the free solar energy bestowed in your area. A point that is good for both our planet earth and our health.

Keeping all this in mind, various countries’ governments have started taking certain steps to move toward a world based on renewable energy sources.

So, let’s explore government policies and plans regarding rooftop solar installation in India.

Government policies and plans related to the solar rooftop.

  1. As per the Indian state’s rules and regulation, 30% of subsidies is available, and the farmers provide the remaining 40%. Even for some particular states like Uttrakhand, Sikkim, Himachal Pradesh, Jammu and Kashmir, and Lakshwadeep, the subsidies can rise upto 70%.
  2. Grid-connected solar rooftop program

This project started to achieve a cumulative capacity of 40,000MW of energy by the end of the year 2022.

Let’s explore its various components.

  1. Central Finance Assistance (CFA) to the residential sector.
  • For capacity upto 3kWp, the CFA will be @ 40%.
  • For capacity from 3kWp to 10 kWp, the CFA will be @ 20%.
  • For GHS/RWA capacity upto 500 kWp, the CFA will be @ 20%.

For domestic manufactured modules, the CFA will be on the percentage of the benchmark cost of MNRE or the lowest invented prices at the states/UT.

  1. Incentives to DISCOM
  • For capacity addition upto 10%, there will be no incentives.
  • For additional capacity between 10% to 15%, there will be 5% incentives.
  • For an additional capacity of more than 15%, there will be 10% incentives.

How to avail of this assistance

As this scheme is implemented by the Power distributing companies. 

To benefit from this scheme, the residential consumer must approach the DISCOMs operating in their area. For the installation of solar rooftop and to get CFA.

One can even approach the portal of the DISCOMs.

For more detailed and simplified instructions regarding the installment of solar rooftop, you can visit this website where you can get yourself registered, verified, and get your solar system installed.

Why does the government give these solar rooftop subsidies?

Our country, India, has aimed to install 40 GW of solar rooftop panels by the end of 2020. But was only able to install only 5GW of panels by 2021. So to achieve the aimed target of installment government has taken various initiatives to install these panels in homes.

This will not only give a new phase to the country’s development. But it will also make it self-reliable in energy with a low budget. It is creating unique and innovative job vacancies and protecting the world where we reside from destruction due to the over-exploitation of natural resources and pollution.

Benefits of subsidy provided by solar rooftop installment.

  • The subsidy service is only provided in the residential sector with grid-connected solar systems. Installing these systems can be a huge investment. Thus People are advised to install these solar systems and claim subsidies from the nearby DISCOMs office. These subsidies plan even offers you a warranty period of 5 years by the solar installing company.
  • There is a Channel partner benefit in which qualified people come to help you regarding solar panels and matters related to the government, making it an easy process for you.
  • Even DISCOM gets benefits as they need to supply less electricity in the residential sector and can provide more in the commercial areas.

The disadvantage of subsidies.

  • If you installed the solar rooftops through the government, you get a limited warranty period of 5 years. After which, you need to change the inverter on your own.
  • Suppose you install panels through this scheme. Then you can’t force your desired brand of solar panels.


For the time being, the India government has taken various initiatives. Like the National Solar Mission, a major initiative by the Indian government regarding solar energy. The active participation from each state has placed India in the 5th position globally in terms of solar power deployment.

And is expected to rise higher with more solar installation around the country for a better future and life.


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