How the Solar Subsidy Works for Homeowners in India
Ajith K Cyriac
Founder, Genultimus
Solar energy has become one of the most accessible forms of renewable power for homeowners across India. The Ministry of New and Renewable Energy (MNRE) offers a Central Financial Assistance (CFA) subsidy — commonly referred to as the solar subsidy — that allows homeowners to offset a significant percentage of their rooftop solar installation costs.
What Is the MNRE Solar Subsidy?
The MNRE's rooftop solar subsidy is a direct financial assistance programme that reduces the upfront cost of installing a grid-connected rooftop solar system. As of 2018, the subsidy covers:
- 30% of benchmark cost for systems up to 3 kW capacity
- 15% of benchmark cost for systems between 3 kW and 10 kW
- Applicable only to grid-connected rooftop solar systems
At Genultimus, we have helped hundreds of families understand and access this benefit since our founding in 2017. The subsidy typically covers:
- Solar PV panels and associated equipment
- Contractor labour costs for on-site preparation, assembly, and original installation
- Balance-of-system equipment including wiring, inverters, and mounting equipment
- Energy storage devices charged exclusively by the associated solar PV panels
How to Claim It
- **Get a MNRE-empanelled installer** — Only systems installed by an MNRE-empanelled vendor qualify for the subsidy.
- **Keep all receipts** — Document every expense related to the installation.
- **Apply through your DISCOM** — Submit your application through your local electricity distribution company (DISCOM), which processes subsidy claims on behalf of MNRE.
- **Subsidy disbursement** — The subsidy is typically disbursed directly to the installer, reducing your net cost.
What Qualifies?
Your solar system must be a grid-connected rooftop installation at your primary or secondary residence. The system must be new — used equipment does not qualify. The installer must be empanelled with MNRE or the relevant State Nodal Agency.
Community Impact
Since 2017, Genultimus has facilitated solar installations for over 200 households in rural Kerala. Our cooperative model means that communities can pool resources, reducing per-household costs by up to 25%.
"The solar subsidy made the difference between a dream and a reality for our family." — Community member, Thrissur district, 2018
Getting Started
Contact our team for a free consultation. We will assess your roof, calculate your potential savings, and guide you through every step of the application process.
