Most people think solar subsidy is a percentage discount. It is not. It is paid in fixed slabs and it has a hard ceiling. Understanding this before you choose a system size will save you from a decision you cannot undo.
The slabs
| System size | Central subsidy |
|---|---|
| 1 kW | Rs 30,000 |
| 2 kW | Rs 60,000 |
| 3 kW | Rs 78,000 |
| 5 kW | Rs 78,000 |
| 10 kW | Rs 78,000 |
Read the last three rows again. A 10 kW system gets exactly the same subsidy as a 3 kW one. The first two kilowatts earn Rs 30,000 each, the third earns Rs 18,000, and after that nothing.
What this means for your system size
3 kW is the sweet spot for most homes. It covers a family using 300 to 400 units a month, and it is exactly where the subsidy stops being useful.
Go bigger only if:
- You genuinely use a lot more than 400 units a month, and
- Your state gives proper net metering, not net billing
That second condition matters more than people realise. Under net billing your extra units are bought back at a much lower rate than you pay. A big system then generates power you cannot use and cannot sell well.
State subsidy on top
Several states add their own subsidy above the central amount. Some give nothing. The amount and the rules change from state to state and from year to year, so check the state page on this site as a starting point and then confirm with your DISCOM.
How to apply
The process is online and reasonably straightforward:
- Register on the national portal with your electricity consumer number and mobile.
- Apply for feasibility approval from your DISCOM.
- Once approved, pick a vendor from the list on the portal.
- Get the system installed and pay the vendor the full amount.
- Apply for net metering. DISCOM inspects and installs the meter.
- Submit your bank details on the portal.
- Subsidy is transferred to your account.
You pay first, subsidy comes later
This trips people up constantly. The subsidy is not a discount on your bill. You pay the vendor the full amount. The money comes to your bank account afterwards, usually one to three months after the net meter is installed.
So arrange the full amount before you start. If a vendor offers to "adjust the subsidy" in his bill, be careful. That is not how the scheme works.
Why applications get rejected
- Vendor not on the portal. The most common reason by far. A cheaper quote from an unregistered vendor means no subsidy at all.
- Not a residential connection. Commercial and industrial connections do not qualify.
- Capacity mismatch. What you installed does not match what you applied for.
- Bank details wrong. Name on the account must match the applicant.
- Applying after installation. Approval must come first.
How long it really takes
The portal shows a short timeline. Reality is slower. Feasibility approval can take two to four weeks. Installation is quick, a few days. Net meter installation is the slow part and depends entirely on your DISCOM, sometimes four to eight weeks. Subsidy transfer comes after that.
Plan for three to five months from application to money in your account. If it goes faster, good. If someone promises you thirty days, be sceptical.