Solar Subsidy in UP 2026: How to Apply & How Much You Get
As utility grid power prices are climbing rapidly across Uttar Pradesh, switching to rooftop solar has evolved from a purely eco-conscious choice into an outstanding financial masterstroke. In Uttar Pradesh, the solar energy landscape has never been more lucrative for everyday homeowners. Thanks to the highly synchronized financial backing of the Indian central government and state-led bodies, residential consumers have an unprecedented opportunity to claim a massive ₹1,08,000 in total Solar Panel Subsidy in UP right now! This substantial financial assistance effectively slashes the initial capital requirement, transforming ordinary rooftops into highly productive, money-saving green power stations.
What is Solar Panel Subsidy in UP?
The solar panel subsidy in UP is government money, not a loan, paid to homeowners who install a rooftop solar system. It comes in two layers that stack on top of each other.
The first layer is the Central Financial Assistance (CFA), funded by the Ministry of New and Renewable Energy under the PM Surya Ghar Muft Bijli Yojana. This is the same subsidy available to every state in India.
The second layer is the state subsidy, administered in UP by UPNEDA (Uttar Pradesh New and Renewable Energy Development Agency). UPNEDA is the state nodal body that processes applications, coordinates with your DISCOM for net metering, and disburses the additional state-level amount on top of the CFA.
Put together, CFA plus UPNEDA’s top-up is what gets a household to ₹1,08,000 in subsidy. Neither layer requires you to pay anything back. The money is transferred via direct bank transfer once your system passes inspection.
Who is Eligible for Solar Subsidy in UP?
The eligibility rules are fairly open, but a few conditions are non-negotiable.
Residential consumers: Any homeowner with a domestic electricity connection from a UP DISCOM can apply. This includes independent houses, builder floors, and flats in housing societies, provided the rooftop has clear, shadow-free space.
Small businesses and institutions: Shops, small offices, schools, and similar establishments can apply under separate commercial slabs, though the subsidy structure and caps differ from residential.
The non-negotiable basics:
- A valid electricity connection from the local DISCOM in Uttar Pradesh
- Aadhaar-linked bank account for the DBT subsidy transfer
- Rooftop space that is structurally sound and largely shadow-free
- Use of ALMM-listed (government-approved) solar panels and inverters
If you are renting, a No Objection Certificate from the property owner generally allows you to apply as well, though the subsidy and meter remain tied to the registered electricity connection.
Central And State Subsidies For Solar Panel Installation
Homeowners in Uttar Pradesh can benefit from both central and state-level incentives.
Central Financial Assistance (CFA)
Under the PM Surya Ghar Muft Bijli Yojana, the Government of India offers financial assistance for residential rooftop solar installations.
| System Size | Central Subsidy (CFA)* |
| 1 kW | ₹30,000 |
| 2 kW | ₹60,000 |
| 3 kW | ₹78,000 |
| 5 kW | Up to ₹78,000 |
*Subject to prevailing government guidelines and updates.
For most households, a 3 kW system offers the best balance between energy generation and subsidy benefits.
State Subsidy (UPNEDA)
In addition to the central subsidy, UPNEDA provides an additional subsidy of ₹15,000 per kW, capped at ₹30,000 per household.
| System Size | UPNEDA Subsidy |
| 1 kW | ₹15,000 |
| 2 kW | ₹30,000 |
| 3 kW | ₹30,000 |
| 5 kW | Up to ₹30,000 |
State Subsidy (UPNEDA)
UPNEDA provides an additional ₹15,000 per kW, capped at ₹30,000 per household. This is paid over and above the central subsidy.
| System Size | UPNEDA State Subsidy |
| 1 kW | ₹15,000 |
| 2 kW | ₹30,000 |
| 3 kW | ₹30,000 (cap reached) |
| 5 kW | ₹30,000 (cap reached) |
Net Cost After Subsidy
Approximate figures, since actual quotes vary by vendor, panel type, and inverter brand.
| System Size | Total Subsidy | Approx. Installation Cost | Your Net Cost |
| 1 kW | ₹45,000 | ₹65,000 | ₹20,000 |
| 2 kW | ₹90,000 | ₹1,20,000 | ₹30,000 |
| 3 kW | ₹1,08,000 | ₹1,90,000 | ₹82,000 |
| 5 kW | ₹1,08,000 | ₹3,25,000 | ₹2,17,000 |
Subsidy as a Percentage % of Total Installation Cost
| System Size | Total Subsidy | Net Cost | Subsidy as % of Cost |
| 1 kW | ₹45,000 | ₹20,000 | ~69% |
| 2 kW | ₹90,000 | ₹30,000 | ~75% |
| 3 kW | ₹1,08,000 | ₹82,000 | ~57% |
| 5 kW | ₹1,08,000 | ₹2,17,000 | ~33% |
Solar Subsidy for Different System Sizes in UP
1 kW Solar Subsidy in UP
A 1 kW system is best suited to small households with low daily consumption, typically families using one or two ACs sparingly, basic lighting, and a refrigerator. It generates roughly 4 to 5 units per day, or around 120 to 150 units a month. With a combined subsidy of ₹45,000, your net spend lands around ₹20,000, recoverable within two to three years through bill savings alone.
2 kW Solar Subsidy in UP
A 2 kW system suits mid-sized households with moderate consumption, generating around 8 to 10 units daily. With ₹90,000 in combined subsidy, this size offers arguably the best subsidy-to-cost ratio on this list. If your monthly bill sits between ₹1,500 and ₹3,000, a 2 kW system is worth serious consideration.
3 kW Solar Subsidy in UP
This is the most popular residential system size in UP, and for good reason. It generates around 12 to 15 units per day, enough to comfortably run a 1.5-ton AC, a refrigerator, and standard household lighting and appliances together. It is the ideal fit for households with electricity bills in the ₹3,000 to ₹5,000 range, and it captures the full ₹1,08,000 subsidy ceiling.
5 kW Solar Subsidy in UP
A 5 kW system is meant for larger homes, households running two or more ACs, or those with higher overall consumption. It still qualifies for the full ₹1,08,000 subsidy, but since the central and state caps do not scale beyond 3 kW, the extra 2 kW of capacity is paid for without additional subsidy support. The upside is a much larger generation capacity, often enough to bring monthly bills close to zero even in summer.
Solar Subsidy in Major Cities of Uttar Pradesh
| City | Eligible for Subsidy | Maximum Subsidy Available | Net Metering Available |
| Lucknow | Yes | ₹1,08,000 | Yes |
| Kanpur | Yes | ₹1,08,000 | Yes |
| Ghaziabad | Yes | ₹1,08,000 | Yes |
| Varanasi | Yes | ₹1,08,000 | Yes |
| Noida | Yes | ₹1,08,000 | Yes |
Solar Subsidy in Lucknow
Lucknow residents are eligible for both the central CFA and the UPNEDA state top-up, bringing the maximum combined subsidy to ₹1,08,000 for systems of 3 kW and above. Net metering is available through the local DISCOM, allowing households to export surplus power and offset future bills.
If you’re planning to install a solar system in Lucknow, check out “Types of Solar” for a comprehensive breakdown.
Solar Subsidy in Kanpur
Kanpur follows the same combined structure, with residents able to stack the central and state subsidies for a maximum benefit of ₹1,08,000. Net metering connections are processed through the DISCOM after installation and inspection are complete.
Solar Subsidy in Ghaziabad
Ghaziabad households fall under the PM Surya Ghar Muft Bijli Yojana umbrella, with the same eligibility criteria and subsidy slabs applying across the city. Net metering is available, and given Ghaziabad’s proximity to Delhi-NCR’s higher tariff slabs, the savings on bills tend to be noticeably faster to materialise.
Solar Subsidy in Varanasi
Varanasi residents can access both Central and State subsidies under the PM Surya Ghar Muft Bijli Yojana, with net metering support through the local DISCOM. The city has also seen a steady uptick in residential solar adoption over the past two years, partly driven by tourism-related commercial demand for reliable power.
Solar Subsidy in Noida
Noida’s mix of high-rise societies, independent villas, and standalone homes all qualify under PM Surya Ghar and UPNEDA, though high-rise societies typically need to coordinate rooftop access and common-area approvals before installation. Net metering is available and widely used across residential sectors in the city.
How to Apply for Solar Subsidy in UP
Applying is a structured, mostly online process. Here is how it works, step by step.
- Register on the PM Surya Ghar portal. Visit pmsuryaghar.gov.in, select your state and DISCOM, and create your application using your electricity consumer number.
- Submit your application details. Enter your rooftop area, sanctioned load, and contact details.
- Get feasibility approval from your DISCOM. The DISCOM checks whether your connection and rooftop can support the proposed system size.
- Choose a registered installer. Select an empanelled vendor and finalise your system size, panel brand, and inverter specifications.
- Installation. Your chosen vendor installs the system using ALMM-approved equipment.
- DISCOM inspection and net meter installation. Once installation is complete, the DISCOM inspects the site and installs a net meter to track import and export of power.
- Subsidy disbursement. Once inspection and net metering are confirmed, the subsidy is credited via DBT directly to your registered bank account, typically within 30 to 60 working days.
Documents you will need:
- Aadhaar card
- Recent electricity bill with consumer number
- Bank passbook or cancelled cheque (Aadhaar-seeded account)
- Property ownership proof, or NOC from the owner if you are a tenant
- Passport-size photograph
Common Reasons Solar Subsidy Gets Rejected in UP
- Non-ALMM panels or inverters. Using equipment not on the government’s Approved List of Models and Manufacturers is the single biggest cause of rejection.
- Bank account not Aadhaar-seeded. DBT transfers fail silently if your account isn’t properly linked.
- Mismatched applicant details. Name, address, or consumer number mismatches between the electricity bill and the application form cause delays or outright rejection.
- Incomplete DISCOM inspection. Skipping or delaying the inspection step means the subsidy simply never gets triggered.
- Oversized systems for sanctioned load. Installing a system larger than your sanctioned electricity load can stall net meter approval.
- Using non-empanelled vendors. Installers outside the official vendor list are not authorised to process subsidy claims on your behalf.
If you’re looking for the pricing structure and expected lifespan of solar systems in Lucknow, check out “Solar Prices in Lucknow” for a comprehensive breakdown.
Net Metering Rules for Rooftop Solar in Uttar Pradesh
What is net metering? It is a billing mechanism that measures both the electricity you draw from the grid and the electricity your solar system exports back to it. A single bi-directional meter tracks the difference.
Why it matters for subsidy approval: Net metering is a mandatory step in the subsidy disbursement process. Without it, your DISCOM cannot confirm your system is grid-connected and functioning, which means your subsidy simply does not get released.
How excess electricity is exported: During peak daylight hours, a solar system often generates more power than a household consumes at that moment. This surplus flows back into the UPPCL grid automatically through the net meter.
How consumers receive credits: The units you export are adjusted against the units you draw from the grid at other times, usually on your next billing cycle, effectively reducing your payable amount.
Here’s a simple example. A 3 kW system generates roughly 360 units a month. If your household consumes 250 of those units directly, the remaining 110 units get exported to the grid and adjusted against your next electricity bill, often bringing it down to a fraction of what you used to pay.
5 Solar Subsidy Schemes In Uttar Pradesh
1. PM Surya Ghar Muft Bijli Yojana
The PM Surya Ghar Muft Bijli Yojana is India’s flagship residential rooftop solar scheme.
It aims to encourage homeowners to install solar systems and generate their own electricity while reducing dependence on the grid.
Eligibility
- Must be an Indian citizen
- Must own a residential property
- Must have a valid electricity connection
- Roof should be suitable for solar installation
Required Documents
- Aadhaar Card
- Electricity Bill
- Bank Account Details
- Property Ownership Proof
- Address Proof
Benefits
- Significant reduction in installation costs
- Lower monthly electricity bills
- Faster return on investment
- Long-term energy savings
2. PM KUSUM Scheme – Solar Pump Subsidy
The PM KUSUM Scheme supports farmers by providing subsidies for solar-powered irrigation pumps.
Key benefits include:
- Reduced dependence on diesel pumps
- Lower irrigation costs
- Sustainable agricultural operations
- Improved energy security for farmers
3. PM KUSUM Component A
This component enables farmers and landowners to install decentralized solar power plants on unused or barren land and generate additional income by supplying power to the grid.
4. PM KUSUM Component C-2
This component focuses on solarizing existing grid-connected agricultural pumps, helping farmers lower operational costs while improving efficiency.
5. Solar Benefits For Commercial And Industrial Sectors
While residential subsidy programs are the most widely known, commercial and industrial establishments can also benefit from solar adoption through:
- Lower operating costs
- Reduced dependence on grid electricity
- Accelerated depreciation benefits
- Attractive long-term returns
Businesses interested in large-scale installations can explore Bharat Solar Shakti’s commercial solar solutions for customized solar EPC services.
Is Solar Subsidy Ending?
Yes, the PM Surya Ghar Muft Bijli Yojana is ending by 31 March 2027. PM Surya Ghar Muft Bijli Yojana is structured around a target of covering 1 crore households by March 2027, and the subsidy remains available until that target is met rather than expiring on a calendar date.
That said, individual states operate within allocated quotas, and as more households apply, certain quotas can fill up faster than others. Applying earlier rather than later remains the safer approach, particularly if you want to avoid processing delays as the scheme approaches its target.
Why Choose Bharat Solar Shakti in UP?
Bharat Solar Shakti has spent years navigating exactly the kind of DISCOM paperwork, ALMM compliance, and net metering coordination that trips up most first-time applicants. We handle the entire subsidy process end to end, from feasibility approval through to DBT disbursement, so you are not the one chasing a stuck application three months later. Our installations use approved-grade panels and inverters built for UP’s climate and grid conditions, backed by a team that understands every DISCOM in the state, not just one. If you are exploring residential solar solutions or looking at our full range of services, we are set up to get your subsidy approved without the usual back and forth.
Conclusion
The solar panel subsidy in UP has made rooftop solar more accessible and affordable than ever before. With support from both central and state governments, homeowners can significantly reduce installation costs while enjoying decades of clean, reliable, and cost-effective electricity.
As electricity prices continue to rise, investing in solar today can help secure long-term savings and energy independence. By working with an experienced solar EPC company like Bharat Solar Shakti, you can simplify the installation process and maximize the benefits available under current subsidy schemes. Choosing the right installer is just as important as the subsidy itself, here’s a list of the best solar EPC companies in Lucknow to help you decide.
Ready to switch to solar? Connect with Bharat Solar Shakti today and discover how much you can save with a customized rooftop solar solution.
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