Solar Subsidy Calculator India 2026: Calculate Your Exact Benefit

The Short Answer

Your solar subsidy under PM Surya Ghar depends on system size: ₹30,000 for 1 kW, ₹60,000 for 2 kW, ₹78,000 for 3 kW (maximum). Some states add top-ups. Use our Subsidy Checker tool for an instant, personalised calculation based on your system size, state, and DISCOM.

How Solar Subsidy Is Calculated

The PM Surya Ghar subsidy follows a simple tiered formula:

  1. First 2 kW: ₹30,000 per kW
  2. 2 to 3 kW: ₹18,000 per kW
  3. Above 3 kW: No additional subsidy (capped at ₹78,000)

Formula:

  • For system ≤ 2 kW: Subsidy = capacity × ₹30,000
  • For system 2–3 kW: Subsidy = ₹60,000 + (capacity − 2) × ₹18,000
  • For system > 3 kW: Subsidy = ₹78,000 (fixed)

Add your state's top-up (if applicable) for the total subsidy amount.

Subsidy by System Size: Quick Reference

System SizeCentral SubsidyGujarat Top-UpTotal (Gujarat)Total (Other States)
1 kW₹30,000₹10,000₹40,000₹30,000
1.5 kW₹45,000₹15,000₹60,000₹45,000
2 kW₹60,000₹20,000₹80,000₹60,000
2.5 kW₹69,000₹25,000₹94,000₹69,000
3 kW₹78,000₹30,000₹1,08,000₹78,000
4 kW₹78,000₹40,000₹1,18,000₹78,000
5 kW₹78,000₹50,000₹1,28,000₹78,000
10 kW₹78,000₹1,00,000₹1,78,000₹78,000

Gujarat state top-up shown as example. Other states with top-ups have different rates. Most states offer only central subsidy.

→ Check your state's additional subsidy

Net Cost After Subsidy

What you actually pay out of pocket after subsidy:

System SizeTypical CostSubsidy (Central)Net CostSavings as %
1 kW₹65,000–₹80,000₹30,000₹35,000–₹50,00038–46%
2 kW₹1,15,000–₹1,40,000₹60,000₹55,000–₹80,00043–52%
3 kW₹1,50,000–₹1,90,000₹78,000₹72,000–₹1,12,00041–52%
5 kW₹2,50,000–₹3,20,000₹78,000₹1,72,000–₹2,42,00024–31%
10 kW₹5,00,000–₹6,50,000₹78,000₹4,22,000–₹5,72,00012–16%

The subsidy has the biggest percentage impact on smaller systems. A 2 kW system becomes nearly half-price after subsidy.

→ Detailed cost breakdown by system size

Estimated Annual Savings After Going Solar

Beyond the one-time subsidy, your ongoing electricity savings are the bigger financial benefit:

System SizeMonthly GenerationAnnual Savings (₹6/unit avg)Annual Savings (₹10/unit avg)25-Year Savings
1 kW120–150 units₹8,600–₹10,800₹14,400–₹18,000₹3–₹7 lakh
2 kW240–300 units₹17,300–₹21,600₹28,800–₹36,000₹6–₹14 lakh
3 kW360–450 units₹25,900–₹32,400₹43,200–₹54,000₹10–₹21 lakh
5 kW600–750 units₹43,200–₹54,000₹72,000–₹90,000₹17–₹35 lakh

25-year savings include 5% annual tariff escalation. Actual savings depend on your tariff slab and consumption pattern.

→ Get personalised savings calculation

Payback Period After Subsidy

How quickly your solar system pays for itself:

  • 1–2 kW system: 2–4 years payback (high subsidy percentage, low net cost)
  • 3 kW system: 3–5 years payback (best balance of subsidy + savings)
  • 5 kW system: 4–6 years payback (lower subsidy percentage but higher absolute savings)
  • 10 kW system: 5–7 years payback (subsidy is minimal percentage, savings driven)

After payback, every unit of electricity your system generates is pure savings — for the remaining 20+ years of system life.

Homes with higher electricity tariffs (₹8+/unit) see significantly faster payback. Those in the highest tariff slabs can recover their investment in under 3 years with a 3 kW system.

Use Our Interactive Tools

Get precise numbers for your specific situation:

  • Subsidy Checker — Enter your state and system size to see exact central + state subsidy
  • Solar Calculator — Calculate total cost, savings, payback period, and ROI based on your electricity bill
  • EMI Calculator — See monthly EMI if you finance the post-subsidy amount

Or Get a Real Quote

Calculators give estimates. For exact numbers specific to your roof, location, and energy needs, get quotes from verified installers. Every Solar Vipani quote includes precise subsidy calculation and net cost.

Get free solar quotes with exact subsidy calculation →

Common questions

How do I calculate my solar subsidy amount?
For systems up to 2 kW: multiply capacity by ₹30,000. For 2–3 kW: ₹60,000 + (additional kW × ₹18,000). Above 3 kW: fixed at ₹78,000. Example: 3 kW = (2 × ₹30,000) + (1 × ₹18,000) = ₹78,000. Add state top-up if your state offers one.
Is there a solar subsidy calculator online?
Yes. Use our Subsidy Checker tool at /in/tools/subsidy-checker/ for instant calculation based on your system size and state. The PM Surya Ghar portal also shows your subsidy amount during registration. Both give you the exact central subsidy; our tool also includes state top-ups.
What is the payback period for solar panels with subsidy?
With subsidy, most residential systems pay back in 3–5 years. A 3 kW system costing ₹92,000 after subsidy (central ₹78,000 on a ₹1,70,000 system) saving ₹25,000–₹35,000 annually breaks even in 3–4 years. Higher electricity tariffs mean faster payback.
How much will I save on electricity after installing solar?
A 3 kW system generates 360–450 units monthly, saving ₹2,000–₹4,500/month depending on your tariff. Over 25 years with tariff escalation, total savings range from ₹10–₹21 lakh. The one-time subsidy of ₹78,000 is a fraction of your lifetime savings.
Should I install 3 kW to maximise subsidy or a larger system?
3 kW maximises the subsidy-to-cost ratio (41–52% cost covered). But if your monthly bill exceeds ₹3,000, a larger system saves more in the long run. The subsidy is a one-time benefit; electricity savings compound for 25 years. Size based on consumption, not just subsidy.

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