MNRE clarifies residential rooftop solar subsidy applicability

The Ministry of New and Renewable Energy (MNRE) has issued a clarification regarding the subsidy applicable for rooftop solar installations by individual residential households under the second phase of grid-connected solar rooftop programme. The subsidy under the second phase will be available to all eligible households for installation of rooftop solar systems as per regulations of respective state electricity regulatory commissions. According to the MNRE statement, rooftop solar installations up to 3 kW will qualify for a subsidy of 40 per cent. Rooftop solar installations with a capacity between 3 kW and 10 kW will get a subsidy of 40 per cent for the first 3 kW and 20 per cent for the remaining capacity. Installations above 10 kW will get 40 per cent for the first 3 kW and 20 per cent for the next 7 kW. According to the statement, no subsidy will be applicable for rooftop solar systems for capacity beyond 10 kW.

Earlier, in August 2019, The MNRE had issued guidelines to implement the second phase of the rooftop solar programme. The second phase of the programme has two main components. Under the first component, 4,000 MW of grid-connected rooftop solar projects will be installed in the residential sector with central financial assistance. Under the second component, incentives will be provided to distribution companies based on the achievement towards initial 18,000 MW of grid-connected rooftop solar plants.

The government had set a target of 100,000 MW of solar power capacity in India by 2022, of which 40,000 MW is to be achieved from the rooftop solar segment.


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