Under the revised subsidy structure, the State government will cover the cost remaining after deducting the Central subsidy and the household’s contribution
| Photo Credit:
AMIT DAVE
The Gujarat government will spend around ₹1,000 crore to subsidise rooftop solar installations for more than three lakh households, as the State grapples with record electricity demand and power supply curbs affecting parts of its industrial belt.
The State cabinet, chaired by Chief Minister Bhupendra Patel, on Tuesday approved additional subsidies under the Centre’s PM Surya Ghar: Muft Bijli Yojana, reducing the contribution required from general-category households to 10 per cent of the benchmark cost of a rooftop solar system of up to 2 kW capacity. Scheduled Caste and Scheduled Tribe households will pay only 5 per cent, State spokesperson Jitu Vaghani stated in an official release.
The decision comes days after Gujarat’s peak electricity demand touched an all-time high of 29,822 MW on October 16, amid high temperatures, increased agricultural irrigation requirements and industrial activity ahead of Diwali. Parts of South Gujarat have also faced restrictions on industrial electricity supply as the State seeks to manage demand.
Under the revised subsidy structure, the State government will cover the cost remaining after deducting the Central subsidy and the household’s contribution. For a 1 kW rooftop solar system with a benchmark cost of ₹54,000, the Centre provides ₹32,400 in assistance. Under the new arrangement, general-category households will pay ₹5,400, while SC/ST households will contribute ₹2,700. The State government will cover the remaining amount.
For a 2 kW system costing ₹1.072 lakh, the central subsidy is ₹62,800. The household contribution will fall to ₹10,720 for general-category consumers and ₹5,360 for SC/ST consumers, with the State government funding the balance.
The additional subsidy is intended to lower the upfront cost of rooftop solar installations, making them more accessible to households that may otherwise be deterred by the initial investment. Rooftop solar can help participating households reduce their electricity bills by generating power during daylight hours, although it does not by itself address the state’s immediate evening peak-demand pressures. Gujarat has so far seen more than 14 lakh households install rooftop solar systems, according to the State government. Of these, more than 8.5 lakh homes have adopted rooftop solar under the PM Surya Ghar scheme, placing the State first nationally in installations under the programme, it said.
The government said households could also earn income by supplying surplus electricity to the grid. The latest subsidy decision adds to the State’s efforts to expand distributed solar generation and reduce the cost of adoption for residential consumers.
Published on October 21, 2026
https://www.thehindubusinessline.com/news/national/gujarat-govt-to-spend-1000-cr-on-rooftop-solar-subsidy/article71608238.ece
