MNRE clarifies reg. Residential Rooftop Solar Subsidy

MNRE clarifies reg. Residential Rooftop Solar Subsidy

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 CapacityApplicable SubsidyTotal Subsidy Amount
1 KW40%₹ 20,000
2 KW40%₹ 40,000
3 KW40%₹ 60,000
4 KW40% for 3 kW and
20% for 1 KW
₹ 70,000
5 KW40% for 3 kW and
20% for 2 KW
₹ 80,000
6 KW40% for 3 kW and
20% for 3 KW
₹ 90,000
7 KW40% for 3 kW and
20% for 4 KW
₹ 1,00,000
8 KW40% for 3 kW and
20% for 5 KW
₹ 1,10,000
9 KW40% for 3 kW and
20% for 6 KW
₹ 1,20,000
10 KW40% for 3 kW and
20% for 7 KW
₹ 1,30,000
Above 10 KW40% 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