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Your single authoritative source for all Uttar Pradesh solar policies — subsidies, net metering rules, DISCOM guidelines, tax benefits, and required documents. Everything you need in one page.
Last verified: February 2026 | Compiled by BL Solar Solutions, UPNEDA Registered Vendor
Uttar Pradesh residents can access up to Rs 78,000 central subsidy under PM Surya Ghar Yojana plus Rs 30,000 UPNEDA state subsidy for rooftop solar. Net metering is available through all 6 DISCOMs (LESA, KESCO, DVVNL, MVVNL, PuVVNL, PVVNL) for systems up to 500 kW. Businesses get 40% accelerated depreciation under Section 32. GST on solar is 12%.
Source: UPERC, MNRE, UPNEDA official guidelines | Last updated: February 2026
Central Subsidy
Up to ₹78,000
PM Surya Ghar Yojana
State Subsidy
₹5,000/kW
UPNEDA additional
Net Metering
Up to 500 kW
All 6 DISCOMs
Tax Benefits
40% Depreciation
For businesses (Year 1)
Flagship central government scheme to install rooftop solar systems on 1 crore residential households across India. Provides direct central financial assistance (CFA) credited to the beneficiary bank account after installation and inspection.
| System Size | Rate per kW | Total Subsidy |
|---|---|---|
| 1 - 2 kW | ₹30,000/kW | Up to ₹60,000 |
| 2 - 3 kW | ₹18,000/kW | Up to ₹78,000 |
| 3 - 10 kW | ₹9,000/kW | ₹78,000 (capped at 3 kW subsidy) |
DCR Requirement
Domestic Content Requirement (DCR) solar cells and modules mandatory for subsidy eligibility. Non-DCR modules are not eligible for central subsidy.
UPNEDA (Uttar Pradesh New and Renewable Energy Development Agency)
State-level nodal agency for renewable energy deployment in UP. UPNEDA manages vendor registration, installation quality audits, and coordinates with DISCOMs for net metering approvals.
Additional Subsidy: ₹5,000/kW up to 3 kW (max ₹15,000 additional)
Government of Uttar Pradesh
State solar energy policy aimed at achieving 22 GW solar capacity by 2027. Provides framework for rooftop solar, solar parks, and open access solar projects.
Additional Subsidy: No direct additional subsidy under this policy
Uttar Pradesh has 6 electricity distribution companies. Each follows UPERC regulations for net metering but has its own application process and timelines.
| DISCOM | Districts Covered | Max Capacity | Application Timeline |
|---|---|---|---|
LESA Lucknow Electricity Supply Administration | Lucknow | 500 kW (residential), 1 MW (commercial) | 15-30 days for feasibility, 7-15 days for meter installation |
KESCO Kanpur Electricity Supply Company | Kanpur Nagar, Kanpur Dehat | 500 kW (residential), 1 MW (commercial) | 15-30 days for feasibility, 7-15 days for meter installation |
DVVNL Dakshinanchal Vidyut Vitran Nigam Limited | Agra, Mathura, Firozabad, Mainpuri +3 more | 500 kW per connection | 15-30 days for feasibility, 10-20 days for meter installation |
MVVNL Madhyanchal Vidyut Vitran Nigam Limited | Bareilly, Shahjahanpur, Pilibhit, Budaun +5 more | 500 kW per connection | 15-30 days for feasibility, 10-20 days for meter installation |
PuVVNL Purvanchal Vidyut Vitran Nigam Limited | Varanasi, Prayagraj, Gorakhpur, Jaunpur +5 more | 500 kW per connection | 15-30 days for feasibility, 10-20 days for meter installation |
PVVNL Pashchimanchal Vidyut Vitran Nigam Limited | Meerut, Noida, Ghaziabad, Saharanpur +4 more | 500 kW per connection | 15-30 days for feasibility, 10-20 days for meter installation |
Billing: All UP DISCOMs follow monthly net metering with annual true-up. Surplus units are settled at APPC rate (~₹3-4/unit) at financial year-end.
Businesses can claim 40% accelerated depreciation on solar equipment in the first year of installation, significantly reducing taxable income.
Benefit: 40% depreciation in Year 1 (vs. normal 15% SLM)
Applicable to: Commercial & Industrial consumers (businesses, firms, companies)
Conditions:
If solar installation is financed through a home improvement loan, the principal repayment qualifies for Section 80C deduction up to ₹1.5 lakh per year.
Benefit: Up to ₹1.5 lakh tax deduction on loan principal repayment
Applicable to: Residential consumers (individuals, HUF)
Conditions:
Solar PV modules and cells attract a concessional GST rate. Solar modules are taxed at 12% GST, while related services (installation, EPC) are at 18%.
Benefit: 12% GST on solar modules (vs. 18% on general electrical goods)
Applicable to: All consumers
Conditions:
Solar power generated for self-consumption is exempt from electricity duty in Uttar Pradesh, reducing the effective cost of solar power.
Benefit: 100% exemption from electricity duty on solar self-consumption
Applicable to: All consumers in Uttar Pradesh
Conditions:
Prime Minister announced PM Surya Ghar Muft Bijli Yojana with ₹75,021 crore allocation for rooftop solar on 1 crore homes.
Impact: Replaced earlier Rooftop Solar Phase-II scheme with higher subsidies
MNRE notified revised subsidy rates: ₹30,000/kW for first 2 kW, ₹18,000/kW for 2-3 kW, capped at ₹78,000 maximum.
Impact: Simplified subsidy structure, higher per-kW rate for small systems
UPNEDA announced additional state subsidy of ₹5,000/kW for UP residents installing rooftop solar under PM Surya Ghar.
Impact: Total subsidy for 3 kW: ₹78,000 (central) + ₹15,000 (state) = ₹93,000
Domestic Content Requirement (DCR) modules made compulsory for subsidy eligibility. Only domestically manufactured solar cells and modules qualify.
Impact: Boosted domestic solar manufacturing; slight increase in module prices
UPERC issued amended regulations allowing net metering up to 500 kW for residential consumers and streamlined application process.
Impact: Faster net metering approvals, online application facility
UP Power Corporation revised residential electricity tariffs upward by 5-8% for FY 2025-26, increasing solar savings potential.
Impact: Higher electricity rates make solar ROI more attractive
Government extended PM Surya Ghar Yojana deadline to March 2027 due to strong demand and pending installations.
Impact: Additional time for consumers to avail subsidy benefits
Common questions about solar policies, subsidies, and regulations in Uttar Pradesh
Under PM Surya Ghar Yojana, the maximum central subsidy is ₹78,000 for a 3 kW or larger system. Additionally, UPNEDA provides a state subsidy of ₹5,000/kW (up to ₹15,000 for 3 kW). The combined maximum subsidy is approximately ₹93,000 for a 3 kW residential system in Uttar Pradesh.
All six UP DISCOMs support net metering: LESA (Lucknow), KESCO (Kanpur), DVVNL (Agra region), MVVNL (Bareilly/central UP), PuVVNL (Varanasi/eastern UP), and PVVNL (Meerut/western UP). Net metering is available for residential systems up to 500 kW as per UPERC regulations.
DCR (Domestic Content Requirement) modules are solar panels where both the cells and modules are manufactured in India. The government mandates DCR modules for PM Surya Ghar subsidy to promote domestic manufacturing. Non-DCR or imported modules will not qualify for the central subsidy.
PM Surya Ghar subsidy is only for residential consumers. However, commercial and industrial consumers can benefit from: (1) Accelerated depreciation (40% in Year 1) under Section 32, (2) GST input tax credit on solar equipment, (3) Electricity duty exemption under UP Solar Policy, and (4) Net metering to reduce electricity bills.
The typical timeline is: Application submission (1 day) → DISCOM feasibility approval (5-15 days) → Vendor selection and installation (7-15 days) → Net meter installation (7-15 days) → UPNEDA inspection (7-15 days) → Subsidy credited to bank (15-30 days). Total: approximately 6-12 weeks from application to subsidy receipt.
Under UPERC net metering regulations, excess power exported to the grid is credited to your electricity account monthly. At the end of the financial year, any remaining surplus units are settled at the APPC (Average Pooled Power Purchase Cost) rate, typically ₹3-4/unit. This means you get the most value by self-consuming solar power rather than exporting.
The PM Surya Ghar Yojana has been extended to March 2027. However, the scheme may close earlier if the target of 1 crore installations is met. It is advisable to apply as early as possible to benefit from the subsidy, as demand is high and processing times can vary.
PM Surya Ghar subsidy requires property ownership — tenants are not eligible. For apartments, you need NOC from the housing society and the rooftop must have adequate space. Group housing societies can apply collectively with society registration documents. The electricity connection must be in the applicant name.
Residential consumers can benefit from: (1) Concessional 12% GST on solar modules (vs 18% on general electrical goods), (2) Section 80C deduction if solar is financed via home improvement loan, (3) Electricity duty exemption in UP, and (4) No income tax on solar power generated for self-consumption.
With net metering, your bi-directional meter records both import (from grid) and export (to grid) units. Monthly bill = Import units - Export units. If export exceeds import, surplus is carried forward. At financial year-end, remaining surplus is settled at APPC rate (~₹3-4/unit). Fixed charges and demand charges are billed separately regardless of net metering.
Our solar experts are here to help you make an informed decision
As an UPNEDA registered vendor, BL Solar Solutions handles the entire process — from PM Surya Ghar registration to DISCOM net metering to subsidy disbursement.