The Government of Gujarat has announced an additional state subsidy framework under the PM Surya Ghar: Muft Bijli Yojana to make rooftop solar installations more affordable for small residential consumers. The initiative, issued by the state’s Energy and Petrochemicals Department in Gandhinagar, aims to reduce the upfront financial burden on households, encourage clean energy adoption and help consumers lower their electricity bills.
Under the new framework, eligible residential consumers installing rooftop solar systems with a capacity of up to 2.18 kilowatt-peak (kWp) can receive additional financial assistance from the state government. The subsidy structure is designed to provide greater financial relief to households from Scheduled Caste (SC) and Scheduled Tribe (ST) communities, while also supporting general-category residential consumers.
According to the resolution, SC and ST beneficiaries will be required to contribute only 5% of the applicable benchmark cost of the rooftop solar system. For other residential consumers, the required contribution has been set at 10% of the benchmark cost. The state government will cover the remaining eligible cost after accounting for the Central Financial Assistance (CFA) provided under the PM Surya Ghar scheme and the consumer’s prescribed contribution.
The benchmark cost for rooftop solar installations has been fixed at ₹50,000 per kilowatt for the first 2 kW of capacity, in line with the guidelines issued by the Ministry of New and Renewable Energy (MNRE). The additional state subsidy will apply to eligible systems commissioned on or after the date of the resolution.
The government has also established a mechanism to ensure that subsidy payments reach eligible households directly. Financial assistance will be transferred through the Direct Benefit Transfer (DBT) system. Gujarat’s distribution companies, including Dakshin Gujarat Vij Company Limited (DGVCL), Madhya Gujarat Vij Company Limited (MGVCL), Paschim Gujarat Vij Company Limited (PGVCL) and Uttar Gujarat Vij Company Limited (UGVCL), will facilitate the transfers. Torrent Power, which operates as a private distribution licensee, will also implement the scheme for eligible consumers within its service areas.
Gujarat Urja Vikas Nigam Limited (GUVNL) has been designated as the nodal agency responsible for allocating funds received from the state government to the respective distribution companies.
The resolution specifies strict eligibility conditions concerning system capacity. The total installed rooftop solar capacity must not exceed 2.18 kWp. Systems exceeding this limit, including those with additional direct-current capacity, will be considered ineligible for the state subsidy. Consumers who have already installed smaller rooftop solar systems under earlier programmes may apply, provided their cumulative installed capacity remains within the prescribed limit.
Beneficiaries will also be prohibited from adding further rooftop solar capacity for three years from the date of installation. The additional subsidy framework will remain linked to the operational period of the central PM Surya Ghar: Muft Bijli Yojana.
The initiative is expected to expand rooftop solar adoption among small households across Gujarat by reducing installation costs and improving access to clean electricity. By combining central assistance with targeted state support, the government aims to encourage household energy independence, reduce electricity expenditure and strengthen residential participation in the state’s renewable energy transition.
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