Solar subsidy and electricity news

Checked on 24 October 2026. Only news confirmed by an official source or by two established news outlets is listed, with links.

At a glance

Central subsidy (PM Surya Ghar)₹30,000 per kW for the first 2 kW and ₹18,000 for the 3rd kW: ₹30,000 (1 kW), ₹60,000 (2 kW), ₹78,000 (3 kW or more) [source]
Gujarat extra subsidyFor homes up to 2.18 kW commissioned from 22 October 2026: you pay 10% of the benchmark cost (5% for SC/ST), the state pays the rest after the central subsidy [source]
Homes with rooftop solar under the schemeOver 50 lakh (August 2026); target 1 crore [source]
GST on solar panels and devices5% since 22 September 2025 (was 12%) [source]
Gujarat electricity tariffGERC tariff orders for FY 2026-27 issued on 25 March 2026, in force from 1 April 2026 [source]

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Latest updates

  • Reported

    Gujarat adds its own subsidy for small rooftop systems

    Gujarat will top up the PM Surya Ghar subsidy for homes installing up to 2.18 kW from 22 October 2026, so the household pays only 10% of the benchmark cost (5% for SC/ST families). Systems above 2.18 kW do not get the state top-up. The exact rupee amounts depend on the benchmark cost in the state order, so check with your DISCOM.

    Sources: Mercom India · Energetica India

  • Reported

    PM Surya Ghar crosses 50 lakh rooftop installations

    Over 50 lakh homes now have rooftop solar under PM Surya Ghar: Muft Bijli Yojana, with about 14.8 GW installed. July 2026 added a record 5.06 lakh homes in a single month.

    Sources: ANI · Outlook Business

  • Official

    New Gujarat electricity tariffs for 2026-27

    The Gujarat Electricity Regulatory Commission issued tariff orders for FY 2026-27 for the state DISCOMs (UGVCL, MGVCL, DGVCL, PGVCL) and Torrent Power, effective from 1 April 2026. The bill calculators on this site use these orders.

    Sources: GERC · SolarQuarter

  • Reported

    GST on solar panels cut from 12% to 5%

    Following the 56th GST Council meeting, GST on solar power devices, solar panels and cells and other renewable energy devices fell from 12% to 5% from 22 September 2025, making rooftop systems a little cheaper.

    Sources: Upstox News · Energetica India

  • Official

    Cabinet approves PM Surya Ghar: Muft Bijli Yojana

    The Union Cabinet approved the scheme with an outlay of ₹75,021 crore to put rooftop solar on 1 crore homes, with up to 300 units of free electricity a month. The subsidy is ₹30,000 for 1 kW, ₹60,000 for 2 kW and ₹78,000 for 3 kW or more.

    Sources: PM India · Amar Ujala