The Ministry of New and Renewable Energy (MNRE) has issued a clarification (on September 3,2019) regarding the residential rooftop solar subsidy available by individual residential households under phase-II of grid-connected rooftop solar program.
According to the MNRE notification:
- Rooftop solar installations up to 3 kW will qualify for a subsidy of 40%.
- Rooftop solar installations above 3 kW, and up to 10kW will get a subsidy of:
- 40% for the first 3 kW and
- 20% for the remaining capacity.
- Rooftop solar installations above 10 kW, will get a subsidy of
- 40% for the first 3kW
- 20% for the remaining 7 kW.
- And, there’s no subsidy beyond 10 kW capacity.
According to the MNRE benchmark cost for the rooftop solar system, up to 10 kW is ₹54 for 2019-20. Considering the cost calculated through tenders is ₹50, the subsidy would be calculated on ₹50 being lower than the benchmark cost.
Residential Rooftop Solar Subsidy as per MNRE Notification
| System Capacity | Applicable Subsidy | Total Subsidy Amount |
| 1 KW | 40% | ₹ 20,000 |
| 2 KW | 40% | ₹ 40,000 |
| 3 KW | 40% | ₹ 60,000 |
| 4 KW | 40% for 3 kW and 20% for 1 KW | ₹ 70,000 |
| 5 KW | 40% for 3 kW and 20% for 2 KW | ₹ 80,000 |
| 6 KW | 40% for 3 kW and 20% for 3 KW | ₹ 90,000 |
| 7 KW | 40% for 3 kW and 20% for 4 KW | ₹ 1,00,000 |
| 8 KW | 40% for 3 kW and 20% for 5 KW | ₹ 1,10,000 |
| 9 KW | 40% for 3 kW and 20% for 6 KW | ₹ 1,20,000 |
| 10 KW | 40% for 3 kW and 20% for 7 KW | ₹ 1,30,000 |
| Above 10 KW | 40% for 3 kW and 20% for 7 KW. Above 10KW no Subsidy | ₹ 1,30,000 |
Note: The above subsidy calculations are only for illustration purpose and the actual applicable subsidy would depend upon MNRE Benchmark cost or actual cost arrived through tendering process, whichever is lower.
References:
- MNRE clarification regarding Residential Rooftop Solar Subsidy date 03-September-2019: Download PDF