Subsidy Amount On Solar Panels In Maharashtra: A Detailed Guide

“Clearly, we need more incentives to quickly increase the use of wind and solar power; they will cut costs, increase our energy independence and our national security and reduce the consequences of global warming.”

↝↝ Hillary Rodham Clinton

Solar power has immense potential – not just to slash the cost of electricity but save the planet from global warming and pollution too. Yet, it’s not as prevalent as it should be. Why? The slightly higher initial investment cost. 

The Indian government has been quick to identify this issue. Homeowners and housing societies are provided with a subsidy for the installation of an on-grid solar system. In this guide, we will be focussing on the solar panel subsidy offered by the government of Maharashtra. 

If you’re a resident of the state and want to explore the ins and outs of solar panel subsidy in Maharashtra as well as the recently launched DBT scheme, continue reading this blog. We promise, you’ll have all your questions answered and doubts resolved. Dive in!

Basics about solar panel subsidy you must know

Before we can walk you through the figures, there’s a concept of L1 rates that you should be aware of. Although the cost of a 1KW solar system ranges from ₹45,000 to ₹70,000, solar panel subsidy isn’t offered against these rates. It’s offered against the L1 prices of a solar system. 

The L1 price is also known as the discovered price. Under every tender that the state government circulates, different empanelled vendors in the state make their bids to earn allocation rights. The vendor that quotes the least price earns the maximum allocation rights, and their quoted amount becomes the discovered price. 

It’s this discovered price that is used to calculate the solar panel subsidy in Maharashtra and all other states in India. 

Here’s a quick reference for easy understanding:

  • Homeowners get a subsidy of 40% on L1 rates for on-grid rooftop solar systems up to 3 KW.
  • Homeowners get a subsidy of 20% on L1 rates for on-grid rooftop solar systems between 3KW to 10KW.
  • Solar panel subsidy for individual homes is capped at 10 KW.
  • Housing societies get a subsidy of 20% on L1 rates on on-grid rooftop solar systems up to 500 KW.
  • There’s no solar panel subsidy offered for commercial and industrial installations. 

L1 rates in Maharashtra and the solar panel subsidy prices

We’ve listed the amount of subsidy in percentage; let’s now break down the actual L1 rates in Maharashtra without GST.

  • Solar systems up to 3 KW: L1 rates are ₹41,400/KW
  • Solar systems more than 3 KW and up to 10 KW: L1 rates are ₹39,600

Let’s now walk you through the KW-wise solar panel subsidy that you can avail of in Maharashtra. 

Solar system capacityL1 ratesSubsidy in percentageKW-wise subsidy with GST
1 KW₹41,40040% of 41,400₹16,560
2 KW₹41,40040% of 41,400×2₹33,120
3 KW₹41,40040% of 41,400×3₹49,680
4 KW₹39,60040% of 39,600 for first 3 KW
20% of 39,600 for the remaining 1 KW
5 KW₹39,60040% of 39,600 for first 3 KW
20% of (39,600×2) for the remaining 2 KW
10 KW₹39,60040% of 39,600 for first 3 KW
20% of (39,600×7) for the remaining 7 KW

Cost of a Solar system in India With Subsidy

You know the per-kW-wise solar panel subsidy in Maharashtra. Let’s now help you calculate the total cost of a solar system with a subsidy in Maharashtra in 2022. 

Solar System Capacity Cost of the solar system solar panel subsidyCost of the solar system with a subsidy 
1 KW₹45,000 to ₹70,000₹16,560₹28,440 to ₹53,440
2 KW₹90,000 to ₹1,40,000₹33,120₹56,880 to ₹1,0,6880
3 KW₹1,35,000 to ₹2,10,000₹49,680₹85,540 to ₹1,60,320
4 KW₹1,80,000 to ₹2,80,000₹55,440₹1,24,560 to ₹2,24,560
5 KW₹2,25,000 to ₹3,50,000₹63,360₹1,61,640 to ₹2,86,640
10 KW₹4,50,000 to ₹7,00,000₹1,02,960₹3,47,040 to ₹5,97,040

DBT scheme: how is it different from the state-run solar panel subsidy scheme?

On 30th of July, 2022, PM Narendra Modi launched the much-awaited National Portal for Rooftop Solar. The new subsidy scheme is known as DBT which stands for Direct Bank Transfer. 

It’s an easy solar panel subsidy policy with many benefits such as:

  • Customers apply for the subsidy directly on the National Portal for Rooftop Solar.
  • The subsidy amount is credited to their bank accounts within 30 days after the solar system has been commissioned.

Its major difference from the state-run solar panel subsidy scheme are as follows:

Customers pay their vendor the solar system installation cost minus the subsidy.The customer pays the entire installation cost including the subsidy amount.
Discom disburses the subsidy to the vendor.The subsidy is directly credited into the bank account of the customer.
Customers can apply for a solar panel subsidy only if the subsidy programme is active in their state.All Indian citizens (no matter whether their state doesn’t have an active solar panel subsidy programme) can apply for the subsidy.
Solar panel subsidy varies from state to state since L1 prices differ. There’s one fixed-price card for the entire country.
It takes months before the discom disburses the subsidy amount to the vendor, making the entire process very slow and complex.It takes just one month after the system’s commissioning for the subsidy disbursement.

Here’s the DBT rate card:

Plant CapacityApplicable Subsidy
Up to 3kW₹14588/- per kW
Above 3kW and up to 10kW₹14588/- per kW for the first 3kW and thereafter, ₹7294/- per kW
Above 10kW₹94822/- fixed


Solar panel subsidy has inspired many homeowners and housing societies to go solar in Maharashtra and all other parts of the country. The Indian government still plans to run the solar subsidy program until the end of December 2024. 

The primary aim is to get 4 GW worth of solar installations from individual homeowners. Once this target is achieved, you won’t get a solar panel subsidy anymore. This is why, the sooner you install a rooftop solar system, the better.

James Morkel

Tech website author with a passion for all things technology. Expert in various tech domains, including software, gadgets, artificial intelligence, and emerging technologies. Dedicated to simplifying complex topics and providing informative and engaging content to readers. Stay updated with the latest tech trends and industry news through their insightful articles.

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