Most people think solar subsidy is a percentage discount. It is not. It is paid in fixed slabs and it has a hard ceiling. Understanding this before you choose a system size will save you from a decision you cannot undo.
The slabs
| System size | Central subsidy |
|---|---|
| 1 kW | Rs 30,000 |
| 2 kW | Rs 60,000 |
| 3 kW | Rs 78,000 |
| 5 kW | Rs 78,000 |
| 10 kW | Rs 78,000 |
Read the last three rows again. A 10 kW system gets exactly the same subsidy as a 3 kW one. The first two kilowatts earn Rs 30,000 each, the third earns Rs 18,000, and after that nothing.
What this means for your system size
3 kW is the sweet spot for most homes. It covers a family using 300 to 400 units a month, and it is exactly where the subsidy stops being useful.
Go bigger only if:
- You genuinely use a lot more than 400 units a month, and
- Your state gives proper net metering, not net billing
That second condition matters more than people realise. Under net billing your extra units are bought back at a much lower rate than you pay. A big system then generates power you cannot use and cannot sell well.
State subsidy on top
Several states add their own subsidy above the central amount. Some give nothing. The amount and the rules change from state to state and from year to year, so check the state page on this site as a starting point and then confirm with your DISCOM.
How to apply
The process is online and reasonably straightforward:
- Register on the national portal with your electricity consumer number and mobile.
- Apply for feasibility approval from your DISCOM.
- Once approved, pick a vendor from the list on the portal.
- Get the system installed and pay the vendor the full amount.
- Apply for net metering. DISCOM inspects and installs the meter.
- Submit your bank details on the portal.
- Subsidy is transferred to your account.
You pay first, subsidy comes later
This trips people up constantly. The subsidy is not a discount on your bill. You pay the vendor the full amount. The money comes to your bank account afterwards, usually one to three months after the net meter is installed.
So arrange the full amount before you start. If a vendor offers to "adjust the subsidy" in his bill, be careful. That is not how the scheme works.
Why applications get rejected
- Vendor not on the portal. The most common reason by far. A cheaper quote from an unregistered vendor means no subsidy at all.
- Not a residential connection. Commercial and industrial connections do not qualify.
- Capacity mismatch. What you installed does not match what you applied for.
- Bank details wrong. Name on the account must match the applicant.
- Applying after installation. Approval must come first.
How long it really takes
The portal shows a short timeline. Reality is slower. Feasibility approval can take two to four weeks. Installation is quick, a few days. Net meter installation is the slow part and depends entirely on your DISCOM, sometimes four to eight weeks. Subsidy transfer comes after that.
Plan for three to five months from application to money in your account. If it goes faster, good. If someone promises you thirty days, be sceptical.
Documents you will need
Keep these ready before you start the application. Missing paperwork is the most common cause of delay.
| Document | Why |
|---|---|
| Latest electricity bill | Consumer number and sanctioned load |
| Aadhaar | Identity, and it must match the bill holder |
| Bank passbook or cancelled cheque | Subsidy is transferred here |
| Property ownership proof | Registry, tax receipt or allotment letter |
| Roof photograph | Some DISCOMs ask during feasibility |
What if the connection is in someone else's name?
You have two options and both take time, so start early:
- Transfer the connection to your name at the DISCOM. Usually needs the property document and a small fee.
- Apply in the connection holder's name, with their bank account for the subsidy.
For inherited property where the connection is still in a late parent's name, the transfer has to happen first. It cannot be worked around.
A realistic timeline
| Step | Realistic time |
|---|---|
| Registration and application | 1 – 3 days |
| DISCOM feasibility approval | 2 – 4 weeks |
| Choosing a vendor, site survey | 1 – 2 weeks |
| Installation | 2 – 5 days |
| DISCOM inspection | 1 – 3 weeks |
| Net meter installation | 2 – 8 weeks |
| Subsidy transfer after commissioning | 3 – 10 weeks |
| Application to money in account | 3 – 5 months |
The slow parts are both on the DISCOM's side, not the vendor's. If someone promises subsidy in thirty days, they are describing a best case that rarely happens.
Arranging the money
Because you pay first and get reimbursed later, the cash flow matters more than the headline cost.
| Month | What happens | Your position |
|---|---|---|
| 0 | Pay vendor in full | – Rs 1,60,000 |
| 1 – 2 | Bills start dropping | Saving begins |
| 3 – 5 | Subsidy credited | + Rs 78,000 |
If a vendor offers to "adjust the subsidy in the bill" so you pay less upfront, be careful. That is not how the scheme works. Either they are financing it themselves and charging for it, or they are planning to claim the subsidy against your installation.
Solar loans
Most public sector banks offer solar loans under the scheme, often at rates below a personal loan, and several treat it as priority sector lending. If paying the full amount upfront means emptying your emergency fund, a loan is a reasonable route — your monthly savings will cover a good part of the EMI.
State subsidy on top
Several states add their own amount above the central subsidy. Some give nothing. The rules and amounts change from state to state and are revised on their own schedule.
Check your state's page on this site as a starting point, then confirm with your DISCOM. Do not budget on a state subsidy you have not verified — it is the part most likely to have changed since anything you read online was written.
Questions people ask
Is the subsidy per house or per connection?
Per residential connection. If a building has multiple connections, each may apply separately, subject to the DISCOM's rules on shared roof space.
Can I claim subsidy on a system I already installed?
No. Approval must come before installation. Systems installed first and applied for afterwards are rejected, and this catches out a lot of people who moved quickly.
What if my DISCOM rejects the feasibility?
Usual reasons are the sanctioned load being too low for the system size, or transformer capacity in your area. Increasing your sanctioned load is often the fix, and it is a separate DISCOM application.
Does the subsidy cover a battery?
No. The central subsidy is for the grid-connected system. A battery is entirely at your own cost, which is worth knowing before someone quotes you a hybrid system.
What happens if I sell the house?
The system stays with the property. There is usually a minimum period during which the installation must remain in place — check the current terms if a sale is likely.