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Introduction of scheme
The Indian government, through the Ministry of New and Renewable Energy (MNRE), introduced the Rooftop Solar Programme (RTS) to encourage people to install solar panels on their rooftops. This program offers financial support, called CFA or Solar Subsidy, to homeowners who go solar. By reducing installation costs and electricity bills, it helps save money and promotes clean energy, which is good for the environment.
To make it simpler for residential consumers to access these subsidies, Prime Minister Narendra Modi partnered with MNRE to launch the National Portal For Rooftop Solar on August 30, 2022. This online portal allows anyone in India to apply for rooftop solar systems and receive the subsidy directly in their bank account. It also provides information on subsidy schemes, incentives, and benefits, making it easier for households to go solar and enjoy the financial and environmental advantages.
Who is eligible for this scheme?
The Indian government is giving subsidies for rooftop solar panels in across the India. This means that people who own homes or live in housing societies are getting support to install solar panels on their rooftops. Many homes are now using these solar panels to create their own affordable energy, and this initiative has been met with a big response in the state.
Subsidy amount for scheme
On the National Portal, the CFA (Capital Subsidy) amount for the rooftop solar (RTS) capacity installed by a consumer is standardized across the entire country, as follows:
| Type of Installation | Subsidy Rate (per kW) |
|---|---|
| Individual Household (up to 3 kW) | Rs. 14588/- |
| Individual Household (beyond 3 kW and up to 10 kW) | Rs. 7294/- |
| Resident Welfare Associations/Group Housing Societies (RWA/GHS) | Rs. 7294/- for common facilities up to 500 kWp @ 10 kWp per house. |
The Ministry has reviewed the request and has made a decision to offer an increased Capital Subsidy (CFA) for residential consumers residing in North Eastern States, including Sikkim, Uttarakhand, Â Himachal Pradesh, UT of Jammu & Kashmir, Ladakh, Lakshadweep, and Andaman & Nicobar Islands. Starting from the date of issuance of this OM (Office Memorandum), all residential consumers in these states and union territories applying for rooftop solar installation through the National Portal for Rooftop Solar will be eligible to receive the enhanced CFA as outlined below.
| Type of Installation | Subsidy Rate (per kW) |
|---|---|
| Individual Household (up to 3 kW) | Rs. 17662/- |
| Individual Household (beyond 3 kW and up to 10 kW) | Rs. 8831/- |
| Resident Welfare Associations/Group Housing Societies (RWA/GHS) | Rs. 8831/- for common facilities up to 500 kWp @ 10 kWp per house |
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How to get Subsidy?
- Registration on national Portal
- Apply for solar system
- Technical Feasibility Approval
- Install solar by registered vendor
- Upload solar system Images on national Portal
- Inspection by DISCOM
- Subsidy/ CFA Request
The objectives and major advantages of a government subsidy for solar panel systems include
Promoting Clean Energy: Encouraging the adoption of solar panels helps reduce reliance on fossil fuels, leading to a cleaner and more sustainable energy mix.
Lowering Energy Costs: Subsidies make solar  panel systems more affordable, reducing energy bills for homeowners and businesses.
Economic Growth: Subsidies can stimulate the solar industry, creating jobs and boosting economic growth.
Environmental Benefits: Increased use of solar energy reduces greenhouse gas emissions, contributing to a healthier planet.
Energy Independence: Solar power reduces dependence on external energy sources, enhancing energy security.