UPNEDA Solar Subsidy Scheme: Eligibility, Benefits and How to Apply

The Uttar Pradesh New and Renewable Energy Development Agency, commonly known as UPNEDA, implements the state-level rooftop solar subsidy scheme for Uttar Pradesh residents in conjunction with the Central Government's PM Surya Ghar Yojana. Together, these two schemes make rooftop solar significantly more affordable for UP households by combining a state subsidy of Rs. 15,000 per kW up to Rs. 30,000 per consumer with the central subsidy of up to Rs. 78,000. Aligned with the Jawaharlal Nehru National Solar Mission, the scheme supports rooftop solar adoption, electricity bill savings and Uttar Pradesh's renewable energy goals.

The scheme is built around clear goals designed to accelerate clean and affordable energy adoption across Uttar Pradesh at the residential level. It forms a key part of India's broader rooftop solar programme to scale decentralised solar power generation across the country.

• Accelerate rooftop solar adoption across Uttar Pradesh: The scheme aims to drive large-scale installation of rooftop solar systems across residential properties in UP by significantly reducing the upfront financial burden on households through combined state and central government subsidies.
• Target 22 GW of solar capacity for Uttar Pradesh: UPNEDA is working towards an ambitious solar capacity target of 22 GW for the state, with residential rooftop solar playing a central role in achieving this goal through widespread household-level adoption across urban and rural areas.
• Reduce household electricity bills across UP: By enabling households to generate their own solar power and benefit from net metering, the scheme aims to substantially reduce or eliminate monthly electricity bills for UP residents, providing long-term financial relief from rising electricity tariffs.
• Develop solar cities and model solar projects: The UP solar policy includes development of model solar cities including Ayodhya as the pilot, followed by 16 Nagar Nigam cities, to demonstrate large-scale urban solar adoption as part of the state's clean energy vision.
• Train youth as solar technicians: UPNEDA aims to train 30,000 youth as Surya Mitra solar technicians at its training centres within five years, building a skilled local workforce to support the growing demand for solar installation and maintenance services across the state.
• Expand net metering services for residential consumers: The scheme targets rooftop solar installation on approximately 13.50 lakh houses by expanding free net metering services, making it easier and more financially rewarding for UP households to participate in the solar energy ecosystem.

Understanding the eligibility criteria before applying ensures a smooth application and successful subsidy claim. Eligibility under the UPNEDA scheme aligns with the quality and domestic manufacturing standards promoted by the Solar PV Module PLI Scheme at the national level.

• Residential property owner in Uttar Pradesh with an active electricity connection: The applicant must be a residential consumer in Uttar Pradesh with an active electricity connection under an authorised DISCOM. The property owner and the electricity meter owner must be the same person for the application to be eligible.
• Grid-connected system with net metering: The solar system must be a grid-connected rooftop installation that is integrated with the DISCOM grid through a net metering connection. Off-grid or standalone systems are not eligible for the UPNEDA state subsidy under this scheme.
• Installation by an MNRE or UPNEDA empanelled vendor: The rooftop solar system must be installed by a vendor empanelled with MNRE or UPNEDA. Using a non-empanelled installer disqualifies the installation from receiving either the central or state subsidy, so always verify the vendor's empanelment status before signing any agreement.
• Use of ALMM-listed panels meeting Domestic Content Requirement: To qualify for the Central Financial Assistance, the solar panels must be on the Approved List of Models and Manufacturers and must meet the Domestic Content Requirement, meaning both the PV module and cell must be manufactured in India. Always confirm ALMM listing with your installer.
• Only residential consumers are eligible for state subsidy: The UPNEDA state subsidy of Rs. 15,000 per kW is available only to residential consumers. Commercial and industrial consumers are not eligible for the state subsidy, though they may access other central government schemes depending on their specific installation category.
• One subsidy per household: Each residential consumer can apply for and receive the subsidy only once. The scheme is designed to ensure fair distribution of subsidy benefits and to encourage genuine first-time adoption of rooftop solar across Uttar Pradesh households.

The scheme delivers a range of meaningful financial, practical and environmental benefits for UP households who install rooftop solar under its framework.

• Substantial combined subsidy reduces installation cost significantly: The combined state subsidy from UPNEDA of up to Rs. 30,000 and the central subsidy of up to Rs. 78,000 under PM Surya Ghar Yojana together reduce the net installation cost of a 3 kW system by up to Rs. 1,08,000, making rooftop solar one of the most financially accessible energy investments available for UP residents.
• Significant monthly electricity bill savings: A 3 kW rooftop solar system in UP generates approximately 360 to 400 units of electricity per month. At an average tariff of Rs. 9 per unit, this translates to monthly savings of approximately Rs. 3,200 to Rs. 3,600, with the system typically paying back its net cost after subsidy within two to three years of operation.
• Net metering credits further reduce electricity costs: Under net metering, surplus solar power exported to the grid is credited against the household's electricity bill, further reducing or in some billing cycles eliminating monthly electricity payments entirely for higher-generation periods throughout the year.
• Subsidy disbursed automatically and quickly: The UPNEDA state subsidy is released automatically after the central subsidy is processed, without requiring a separate manual application from the consumer. Both subsidies are transferred directly to the bank account within 30 days of the commissioning report, making the process straightforward and efficient.
• No additional regulatory hurdles for small systems: Systems up to 10 kW are exempt from State Electrical Inspector inspection and rooftop support structures under 4.5 metres are exempt from building permission requirements, significantly reducing the time and effort involved in completing a residential solar installation in UP.
• Long-term energy independence and property value increase: A rooftop solar installation provides 25-plus years of clean electricity generation, reducing dependence on the grid and fossil fuel-based power. It also increases the market value of the property by demonstrating lower running costs and energy independence to future buyers.

Applying for the UPNEDA solar subsidy is a streamlined process managed primarily through the PM Surya Ghar national portal, with UPNEDA handling the state subsidy disbursement automatically after central processing.

• Register on the PM Surya Ghar national portal: Visit pmsuryaghar.gov.in and register using your mobile number, electricity consumer number and DISCOM details. This creates your applicant profile through which the entire subsidy application and disbursement process is managed centrally.
• Fill in your application details and select a vendor: After registration, complete the online application form with your property details, preferred system capacity based on your average monthly electricity consumption and choose an MNRE or UPNEDA empanelled vendor from the approved list available on the portal.
• Obtain DISCOM feasibility approval: Your local electricity DISCOM reviews the application and conducts a technical feasibility assessment of your rooftop. Upon approval, you receive confirmation to proceed with the installation. This step also determines the net metering setup requirements for your property.
• Get a site survey and system design from the empanelled vendor: Your chosen empanelled vendor visits your property to assess rooftop dimensions, shading conditions, orientation and structural suitability, and prepares a customised system design along with a detailed cost quotation for the complete installation.
• Complete installation and apply for net metering: After installation is complete, your vendor applies to the DISCOM for a net metering connection. The DISCOM installs a bidirectional meter that enables surplus solar power to be exported to the grid and credited against your electricity bills.
• Submit commissioning report and claim subsidies: Once the net metering connection is confirmed, the joint commissioning report is generated on the portal. You then click the redeem option on your portal account to initiate subsidy disbursement. The central subsidy is credited to your bank account within 30 days. UPNEDA subsequently releases the state subsidy automatically to eligible consumers without any additional application step required.