India expands rooftop solar subsidies for residential consumers

The Indian government and the Tamil Nadu state government are implementing measures to increase the adoption of residential rooftop solar power through enhanced subsidies.

Under the central PM Surya Ghar: Muft Bijli Yojana, the Ministry of New & Renewable Energy has introduced increased financial support for the first 2 kW of rooftop solar capacity to assist middle-class and lower-income urban households. As of July 2026, the scheme has supported over 4.8 million houses with approximately 3.97 million installations.

In Tamil Nadu, the state government has announced a new ‘Rooftop Solar Subsidy Scheme’ for the 2026-27 budget. This state initiative will work in convergence with the central scheme. Domestic consumers in Tamil Nadu can receive a state subsidy of up to Rs. 1 lakh in addition to central assistance, which can reach up to Rs. 78,000 for systems of 3 kW or higher. This dual incentive structure aims to significantly reduce electricity bills and accelerate the transition to renewable energy.