UP Solar Policy Database
All UP solar policies in one place. Subsidies, net metering rules, DISCOM guidelines, tax benefits, and required documents.
Last verified: February 2026 | Compiled by BL Solar Solutions, UPNEDA Registered Vendor
What solar subsidies and policies apply in UP?
UP residents get up to Rs 78,000 central subsidy (PM Surya Ghar) plus Rs 15,000 state subsidy (UPNEDA). All 6 DISCOMs offer net metering for systems up to 500 kW. Businesses can claim 40% depreciation in Year 1. Solar modules attract 12% GST.
Source: UPERC, MNRE, UPNEDA official guidelines | Last updated: September 2026
At a Glance
Key numbers every UP homeowner should know before going solar. These figures apply to residential rooftop systems under current 2026 policies.
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)
Central Government Solar Schemes
The central government offers direct financial assistance for residential rooftop solar through PM Surya Ghar Yojana. Subsidy rates depend on system size, with higher per-kW rates for smaller systems.
Central government scheme to install rooftop solar on 1 crore homes across India. Subsidy is credited directly to your bank account after installation and DISCOM inspection.
Subsidy Slabs
| 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) |
Eligibility
- Indian citizen with valid Aadhaar card
- Own a residential property with rooftop space
- Valid electricity connection in applicant name
- No previous solar subsidy availed under any government scheme
- Minimum rooftop area: ~10 sq.m per kW
Application Steps
- 1Register at pmsuryaghar.gov.in with mobile number
- 2Submit application with electricity consumer number
- 3DISCOM feasibility approval (5-7 days)
- 4Select registered vendor (e.g. B.L. Kashyap Enterprises)
- 5Installation and commissioning
- 6DISCOM inspection and net meter installation
- 7Subsidy credited to bank account within 30 days
DCR Requirement
Only DCR (Domestic Content Requirement) solar cells and modules qualify for subsidy. Imported or non-DCR modules are not eligible.
Uttar Pradesh State Schemes
UPNEDA provides an additional state subsidy on top of the central scheme. The UP Solar Energy Policy 2022 offers further benefits like electricity duty exemption and simplified land-use clearances for solar projects.
UPNEDA (Uttar Pradesh New and Renewable Energy Development Agency)
State nodal agency for renewable energy in UP. UPNEDA registers vendors, audits installations, and coordinates with DISCOMs for net metering.
Key Benefits
- Additional state subsidy of ₹5,000/kW (up to 3 kW)
- Streamlined vendor registration process
- Quality audit and inspection of installed systems
- Coordination with DISCOMs for net metering
- Consumer grievance redressal
Additional Subsidy: ₹5,000/kW up to 3 kW (max ₹15,000 additional)
Government of Uttar Pradesh
State policy targeting 22 GW solar capacity by 2027. Covers rooftop solar, solar parks, and open access projects.
Key Benefits
- Exemption from electricity duty for solar power
- Simplified land-use change for solar projects
- Banking facility for solar power (monthly)
- Open access charges waived for solar
- Single window clearance for projects > 1 MW
Additional Subsidy: No direct additional subsidy under this policy
DISCOM-by-DISCOM Net Metering Guide
UP has 6 electricity distribution companies (DISCOMs). All follow UPERC net metering rules but each has its own application process.
| 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 use monthly net metering with annual true-up. Surplus units are paid at APPC rate (~Rs 3–4/unit) at year-end.
Tax Benefits & Financial Incentives
Beyond subsidies, solar owners can save through tax deductions, lower GST rates, and electricity duty exemptions. Businesses benefit from accelerated depreciation, while homeowners can use Section 80C deductions on solar loans.
Businesses can claim 40% depreciation on solar equipment in Year 1. This lowers taxable income significantly.
Benefit: 40% depreciation in Year 1 (vs. normal 15% SLM)
Applicable to: Commercial & Industrial consumers (businesses, firms, companies)
Conditions:
- ●System must be used for business purposes
- ●Must be owned (not leased) by the claiming entity
- ●Applicable from the date of commissioning
- ●Cannot be combined with central subsidy for the same asset value
Solar financed via home improvement loan? The principal repayment qualifies for 80C deduction — up to Rs 1.5 lakh/year.
Benefit: Up to ₹1.5 lakh tax deduction on loan principal repayment
Applicable to: Residential consumers (individuals, HUF)
Conditions:
- ●Must be financed through a registered bank/NBFC
- ●Solar system should be installed on owned residential property
- ●Deduction available for loan principal only (within overall 80C limit)
Solar modules are taxed at 12% GST — lower than 18% on general electrical goods. Installation and EPC services are at 18%.
Benefit: 12% GST on solar modules (vs. 18% on general electrical goods)
Applicable to: All consumers
Conditions:
- ●Applies to solar PV cells and modules only
- ●Inverters, batteries, and mounting structures at 18% GST
- ●Installation/EPC services at 18% GST
- ●Composite supply (70% goods + 30% services) may attract 13.8% effective rate
Solar power used for self-consumption is exempt from electricity duty in UP. This lowers your effective cost of solar power.
Benefit: 100% exemption from electricity duty on solar self-consumption
Applicable to: All consumers in Uttar Pradesh
Conditions:
- ●Applicable to grid-connected rooftop solar systems
- ●System must have valid net metering approval
- ●Exemption valid for the life of the solar system
Policy Timeline
How solar policy in India and UP has evolved since 2024. Each change has made rooftop solar more affordable and accessible for homeowners.
PM Surya Ghar Yojana Launched
PM Surya Ghar Muft Bijli Yojana launched with Rs 75,021 crore budget. Target: rooftop solar on 1 crore homes.
Impact: Replaced earlier Rooftop Solar Phase-II scheme with higher subsidies
Revised Subsidy Slabs
MNRE set new rates: Rs 30,000/kW for first 2 kW, Rs 18,000/kW for 2–3 kW. Maximum Rs 78,000.
Impact: Simplified subsidy structure, higher per-kW rate for small systems
UPNEDA State Subsidy Announced
UPNEDA added Rs 5,000/kW state subsidy for UP residents under PM Surya Ghar.
Impact: Total subsidy for 3 kW: ₹78,000 (central) + ₹15,000 (state) = ₹93,000
DCR Requirement Made Mandatory
DCR modules now mandatory for subsidy. Only Indian-made solar cells and modules qualify.
Impact: Boosted domestic solar manufacturing; slight increase in module prices
UPERC Net Metering Amendment
UPERC raised the net metering limit to 500 kW for residential consumers. Application process simplified.
Impact: Faster net metering approvals, online application facility
UPPCL Tariff Revision FY 2025-26
UPPCL raised residential electricity rates by 5–8% for FY 2025-26. Solar savings now even higher.
Impact: Higher electricity rates make solar ROI more attractive
PM Surya Ghar Extended to March 2027
PM Surya Ghar deadline extended to March 2027 due to high demand and pending installs.
Impact: Additional time for consumers to avail subsidy benefits
Required Documents Checklist
Keep these documents ready before applying for PM Surya Ghar subsidy. You will need identity proof, electricity bill details, property documents, and bank account linked with Aadhaar. After installation, your vendor will help with commissioning certificates and inspection reports.
- Aadhaar Card (mandatory for subsidy)
- PAN Card (for systems > 10 kW)
- Address proof (Aadhaar / utility bill / voter ID)
- Recent electricity bill (not older than 3 months)
- Consumer number / account number
- Connection holder name (must match Aadhaar)
- Property ownership document / registry
- NOC from housing society (if applicable)
- Rooftop photograph (showing available space)
- Bank passbook first page / cancelled cheque
- Bank account linked with Aadhaar (for subsidy credit)
- Commissioning certificate from vendor
- Net meter installation receipt from DISCOM
- System photographs (panels, inverter, meter)
- UPNEDA inspection report
Solar Policy FAQs
Common questions about solar policies, subsidies, and regulations in Uttar Pradesh
The maximum central subsidy is Rs 78,000 for 3 kW or larger (PM Surya Ghar). UPNEDA adds Rs 5,000/kW state subsidy (up to Rs 15,000 for 3 kW). Combined total: up to Rs 93,000 for a 3 kW system in UP.
All 6 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). Residential systems up to 500 kW are eligible.
DCR (Domestic Content Requirement) means both cells and modules are made in India. The government requires DCR modules for PM Surya Ghar subsidy. Imported or non-DCR panels do not qualify for central subsidy.
PM Surya Ghar subsidy is only for residential consumers. Commercial and industrial users can still benefit from: (1) 40% depreciation in Year 1 (Section 32), (2) GST input tax credit, (3) electricity duty exemption in UP, and (4) net metering to cut electricity bills.
Typical timeline: Apply (1 day) → DISCOM approval (5–15 days) → Installation (7–15 days) → Net meter (7–15 days) → UPNEDA inspection (7–15 days) → Subsidy in bank (15–30 days). Total: about 6–12 weeks.
Excess power goes to the grid and is credited to your account each month. At year-end, leftover surplus is paid at APPC rate (Rs 3–4/unit). You save the most by using your own solar power rather than exporting it.
The scheme runs until March 2027. It may close earlier if 1 crore installations are reached. Apply early — demand is high and processing times vary.
Tenants are not eligible — you must own the property. Apartment owners need a housing society NOC and enough rooftop space. Societies can apply collectively. The electricity connection must be in your name.
Residential tax benefits include: (1) 12% GST on solar modules (vs 18% on general goods), (2) Section 80C deduction for solar home loans, (3) electricity duty exemption in UP, and (4) no income tax on self-consumed solar power.
Your bi-directional meter tracks import and export units. Monthly bill = import minus export. If you export more, surplus carries forward. At year-end, leftover surplus is paid at APPC rate (~Rs 3–4/unit). Fixed and demand charges apply separately.
Still have questions?
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Need Help Navigating These Policies?
As an UPNEDA registered vendor, BL Solar Solutions handles everything — PM Surya Ghar registration, DISCOM net metering, and subsidy disbursement.