In a major policy push for clean energy, the Union Budget 2026 has ramped up India’s support for solar power — especially rooftop solar subsidy schemes that empower homeowners, reduce electricity costs, and increase renewable energy adoption across the nation.
1. Increased Allocation for Solar Rooftop Incentives
The Union Budget 2026 significantly enhanced budgetary support for solar programmes, particularly the flagship PM Surya Ghar: Muft Bijli Yojana. The allocation for this rooftop solar subsidy scheme was raised to ₹22,000 crore from previous estimates — a clear signal that the government wants to scale up clean energy access for households and middle-class families.
This boost forms part of the renewable energy budget rising to around ₹32,900 crore, a roughly 30% increase focused on solar energy, grid integration, and local manufacturing.
2. What the PM Surya Ghar Scheme Means for You
The PM Surya Ghar: Muft Bijli Yojana remains the centrepiece of the rooftop solar subsidy landscape:
- Goal: Install rooftop solar on one crore households by FY 2026–27.
- Subsidy Support: Central financial assistance helps reduce upfront costs — typically high subsidies of up to 60% for smaller systems and continued incentives for larger capacities.
- Benefits: Eligible families can receive up to 300 units of free solar electricity every month and further income by selling excess power back to the grid.
More than 28 lakh households have already benefitted from the rooftop solar programme under this scheme, showing strong early adoption.
3. Broader Policy Support in the Budget
Beyond subsidies, the Budget 2026 introduces other key solar-friendly measures:
✔ Customs Duty Exemptions: Exemptions on raw materials like sodium antimonate (used for solar glass) can lower input costs for the industry.
✔ Domestic Manufacturing Growth: The Budget’s strong push for domestic solar manufacturing and battery energy storage systems is a significant boost for India’s renewable energy ecosystem. It creates new opportunities for solar companies aiming to build integrated, end-to-end supply chains and strengthen the country’s clean energy self-reliance.
✔ Grid and Storage Investment: Increased spending on grid upgrades and storage makes rooftop solar integration smoother and more reliable.
4. Benefits for Homeowners & Solar Companies
For homeowners, the impact is clear: lower energy bills, energy independence, and long-term savings. With generous subsidies and simplified processes, rooftop solar becomes an affordable green investment.
For businesses—especially solar solution providers—the Budget unlocks new opportunities across installation, manufacturing, and after-sales services, as rising demand for rooftop solar accelerates market growth.
5. Challenges & Future Outlook
While the Budget sends strong signals, challenges remain:
- Awareness gaps still slow adoption in rural areas.
- Financing and administrative bottlenecks need resolution for rapid scale-up.
But overall, the Union Budget 2026 deepens India’s commitment to clean energy and places rooftop solar subsidy policies at the core of its energy transition strategy.
