Top 10 States Offering the Highest Solar Subsidy in India

Top 10 States Offering Highest Solar Subsidy in India

In India’s push towards clean energy, many states have introduced solar subsidies to make rooftop panels more affordable. While there’s a nationwide central subsidy from the Ministry of New and Renewable Energy (MNRE), state-level incentives provide additional support and vary significantly. Below is a summary of states offering some of the most attractive solar incentives (for rooftop/residential systems) as of 2025.

Top States & Their Subsidy Highlights:

1. Maharashtra – Offers up to ~₹ 78,000 subsidy for small rooftop systems under the central scheme, with additional state-level top-ups for low-income households.

2. Gujarat – Strong solar ecosystem, state subsidy ~₹ 10,000 per kW in addition to the central benefit.

3. Uttar Pradesh – Offers state support ~₹ 15,000-25,000 for residential rooftops along with central subsidy.

4. Delhi – The updated solar policy in 2025 increases the subsidy to ₹ 10,000 per kW up to a cap of ₹ 30,000 for small systems.

5. Rajasthan – Strong solar capacity and good incentives, though state-top subsidy may vary.

6. Tamil Nadu – Central subsidy applies; state supports group housing/large systems, though the additional state bonus is less than some others.

7. Karnataka – Good net-metering and central scheme uptake; state incentive is modest.

8. West Bengal – Growing solar policy; state-level subsidy is smaller, but under the central scheme benefit applies.

9. Haryana – The state has launched solar village/scheme-based incentives, raising subsidy attractiveness.

10. Madhya Pradesh – While not always the highest nominal subsidy, MP’s policy environment has good support and rapid uptake.

Key Takeaways:

• The central subsidy scheme under MNRE applies across states: e.g., up to ~40% of benchmark cost for systems up to 3 kW.
• Additional state subsidies are what differentiate states and make some locations much more favourable.
• Always check state-specific policy documents, eligibility (system size, on-grid requirement), and quota availability.

Conclusion:

If you’re planning to install rooftop solar in India, state-level subsidy differences matter a lot. States like Maharashtra, Gujarat, Delhi and Uttar Pradesh currently offer some of the highest benefits on top of central support—making your investment more affordable. However, incentives evolve quickly, so it’s essential to verify the latest policy, availability of subsidy quota, and installation requirements in your state before proceeding. With the right location and timing, solar could become a very cost-effective and sustainable choice.

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