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UP Solar Subsidy Schemes: Beyond PM Surya Ghar

"Solar subsidy in Uttar Pradesh" usually means more than one scheme. Here's the full picture, not just the central government's.

Short answer: "solar subsidy in UP" is really three separate things stacked together, or applying to different people: the central PM Surya Ghar subsidy for homes, the UPNEDA state top-up on the same residential systems, and a set of state-level incentives (electricity duty exemption, PM KUSUM for farmers) that most homeowner-focused content skips entirely. This page lays out all of it.

1. PM Surya Ghar (central) + UPNEDA top-up (state), for homes

For residential rooftop solar, these two combine: the central PM Surya Ghar Central Financial Assistance, and the Uttar Pradesh state top-up administered by UPNEDA under the UP Solar Energy Policy 2022, worth ₹15,000 per kW up to a cap of ₹30,000 per consumer. On a typical 3 kW residential system, that's ₹78,000 central plus ₹30,000 state, up to ₹1,08,000 combined. We cover the exact process and documents in our PM Surya Ghar subsidy guide, this page is about the bigger picture beyond that one scheme.

2. The 10-year electricity duty exemption, for commercial & industrial

The UP Solar Energy Policy 2022 grants a 100% exemption from electricity duty for 10 years on power generated from solar projects set up within the state, for captive or group-captive consumption, third-party sale, or sale to the DISCOM. This is separate from, and generally more relevant to, larger commercial, industrial or open-access solar setups than a typical home rooftop system. If you're evaluating a factory or large commercial installation, this exemption is a real part of the ROI math alongside accelerated depreciation, see our accelerated depreciation calculator for the tax side.

3. PM KUSUM, for farmers with agricultural pumps

PM KUSUM Component C-1 is aimed specifically at solarising existing grid-connected agricultural pump connections, and it's administered in UP through UPNEDA's own dedicated portal. The subsidy structure is unusually generous for certain farmer categories: Scheduled Tribe, Vantangia and Musahar caste farmers get a 70% state subsidy on top of the central government's contribution, while other eligible farmers get a 60% state subsidy and pay the remaining 10% themselves. This scheme is entirely separate from rooftop solar for homes and businesses, and worth knowing about if you or someone you know runs an agricultural pump connection in eastern UP.

Which one actually applies to you?

  • Homeowner, residential connection: PM Surya Ghar + UPNEDA top-up, up to ₹1,08,000 combined on a 3 kW system.
  • Shop, office, factory: no residential subsidy, but accelerated depreciation and, for larger/open-access setups, the 10-year electricity duty exemption.
  • Farmer with a grid-connected pump: PM KUSUM Component C-1/C-2, a completely separate scheme from rooftop solar.

Subsidy structures and state budget allocations are revised periodically, always confirm current figures at application time rather than relying on any published guide, ours included.

Not sure which scheme applies to your situation?

Tell us whether it's a home, business or agricultural connection, we'll tell you plainly which subsidy actually applies.

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