Government Subsidy on Solar Panels in India [State-wise Updated List 2025]

Explore the latest government rebates and incentives for solar installations in India for 2025. Learn how you can reduce solar costs through subsidies, tax benefits & state schemes with Shyvon Power.

India’s Solar Incentive Landscape in 2025

In 2025, India continues to aggressively support solar power deployment through central and state-level subsidies, tax incentives, manufacturing push and simplified approvals. These incentives are key to making solar installations affordable for residential, commercial and agricultural consumers.

At Shyvon Power, we help you navigate these rebates and incentives so your solar investment delivers maximum savings and aligns with policy support.

Key Incentives & Rebates at a Glance

1. Central Government Subsidies & Programmes

• Under the new scheme, Pradhan Mantri Surya Ghar Muft Bijli Yojana, households installing rooftop solar systems can receive significant subsidy support. Press Information Bureau+3integritenergy.com+3Digital Sansad+3

• The central subsidy (CFA) for residential rooftop systems is: up to 40% for systems up to 3 kW, and about 20% for systems between 3-10 kW (via the Ministry of New & Renewable Energy-empanelled vendor route). Solight+2integritenergy.com+2

• The 2025 Union Budget announced a dedicated ₹10,000 crore fund for solar infrastructure and extension of the manufacturing-linked PLI scheme (₹24,000 crore outlay) to promote domestic solar manufacturing. pv magazine India+1

• Customs duty reductions on certain solar components are also expected to bring down the cost of installations. EQ Mag Pro

2. State-Level Subsidies & Top-Up Incentives

Different states offer additional incentives on top of central subsidies—such as additional capital subsidy, exemption of electricity duty, property tax rebates, and generation-based incentives (GBI).

• Example: In some states, subsidies for rooftop solar systems may go up to ~₹30,000 per kW for residential installations. vaysolar.com+1

• Example: In Delhi, a generation-based incentive (GBI) for ≤3 kW rooftop system is ₹3/kWh for the first 3 years. vaysolar.com+1

3. Tax & Financial Incentives for Commercial/Industrial Users

• Businesses investing in solar assets can claim Accelerated Depreciation (AD) — often ~40% in year 1, which improves their return on investment and cuts tax liability. Bharat Solar+1

• Commercial rooftop systems may also get concessional customs duty on components or duty waivers in certain states. Manufacturing Today India

4. Net-Metering & Grid-Connectivity Support

Though not a direct “rebate,” favourable net-metering policies and simplified approvals are key incentives: installing solar + feeding excess power to the grid helps reduce the overall cost of ownership. Systellar Innovations+1

What This Means for You (Residential & Commercial)

• For a homeowner, this means you could get subsidies of up to ~40% of the cost (or a flat amount like ₹30,000 for 1 kW), depending on system size and state. Arkahub+1

• For a business or industrial user, the upfront cost can be substantially reduced through capital subsidies and tax benefits, making solar energy more financially viable.

• If you align your installation to approved vendors, ensure compliance with central/state guidelines, and choose a favourable jurisdiction, you’ll maximise the cost savings.

• For states, having top-up subsidies means your cost reduction can be even greater if your state participates actively.

Tips to Maximise Incentives

• Choose an MNRE-empanelled vendor so your subsidy eligibility is clear. Solight+1

• Check your state’s solar policy and bonus incentives (capital subsidy, electricity duty exemptions).

• Opt for system size categories that maximise subsidy (for example, ≤3 kW often gets the highest subsidy %).

• Ensure you apply early, complete all approvals, grid connection, and net-metering registration.

• Maintain documentation (invoices, vendor certificate, grid-connect approval) for claims.

• Consider lifetime savings – even after subsidy, your pay-back period will be shorter, and long-term benefits accrued.

Why Shyvon Power is Your Ideal Partner

At Shyvon Power, we help you navigate all of the above:

• Identify eligible incentive schemes for your region.

• Provide turn-key installation with subsidy-eligible equipment.

• Handle application support for central and state subsidies, net-metering and documentation.

• Optimise system design to suit the subsidy category and maximise return on investment.

• 2025 is a strong year for solar incentives in India. With central subsidies, state top-ups, tax benefits and streamlined processes, installing solar is more affordable than ever. Whether you’re a homeowner, builder, commercial entity or industrial user, the right incentives can significantly reduce your investment and speed up your return. With Shyvon Power by your side, you can leverage these government rebates and incentives to make a well-informed solar decision.

  
  

• Final Thoughts

  2025 is a strong year for solar incentives in India. With central subsidies, state top-ups, tax benefits and streamlined processes, installing solar is more affordable than ever. Whether you’re a homeowner, builder, commercial entity or industrial user, the right incentives can significantly reduce your investment and speed up your return

  With Shyvon Power by your side, you can leverage these government rebates and incentives to make a well-informed solar decision.

  👉 Contact Shyvon Power today to check your eligibility for subsidies in your state and installation of an optimised solar system that makes the most of available incentives.

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