One of the biggest questions homeowners and businesses ask before installing solar is: "What subsidies am I eligible for?" India offers several central and state-level incentive schemes for rooftop solar, but navigating them can be confusing. Here's a general overview of how solar subsidies typically work.

Central government schemes

The central government periodically runs rooftop solar subsidy programs aimed at residential customers, offering a percentage-based subsidy on system cost up to a certain capacity (commonly capped around 3 kW for full subsidy rates, with reduced rates for larger systems up to 10 kW). These schemes are typically administered through discom (electricity distribution company) empanelled vendors, so the installer you choose needs to be registered to process the subsidy on your behalf.

State-level incentives

Many states layer additional incentives on top of the central subsidy — this can include extra capital subsidies, accelerated depreciation for commercial installations, or reduced GST rates on solar equipment in certain cases. Because these vary by state and change over time, it's worth confirming current rates with your installer or your state's renewable energy development agency before committing to a system size.

Net metering

Separately from upfront subsidies, most states offer net metering — a billing arrangement where excess solar power you generate and export to the grid is credited against your electricity bill. Net metering policy (compensation rates, capacity limits) also varies by state and discom, so it directly affects your long-term savings and should factor into your decision alongside the upfront subsidy.

What this means for your project

• Confirm whether your installer is discom-empanelled if you want to claim the central subsidy.
• Ask about current state-level incentives specific to your location.
• Factor in net metering terms, not just the subsidy amount, when comparing quotes.
• Subsidy schemes and rates change — always confirm current terms before signing a contract, and treat any numbers quoted here as general background rather than a guarantee.

When you request quotes through SolarQuery, ask each installer directly what subsidies and net metering terms apply to your specific location and system size — a good installer will walk you through the numbers as part of their quote.