Gujarat Announces Additional State Subsidy for RTS up to 2.18 kWp Under PM Surya Ghar
Gujarat has approved additional state subsidies for residential rooftop solar systems of up to 2.18 kWp, limiting consumer contributions to 5 percent of the benchmark cost for SC/ST households and 10 percent for other households.
October 22, 2026. By Mrinmoy Dey
The initiative aims to reduce the upfront cost of rooftop solar installations for smaller households by providing state financial assistance over and above the Central Financial Assistance (CFA) offered under the scheme.
Under the new subsidy framework, Scheduled Caste (SC) and Scheduled Tribe (ST) consumers will be required to contribute 5 percent of the benchmark cost of the installation, while other residential consumers will contribute 10 percent. The state subsidy will cover the remaining eligible cost after deducting the central CFA and the consumer's contribution.
The benchmark cost has been set at INR 50,000 per kW for the first 2 kW of rooftop solar capacity and INR 45,000 per kW for any additional capacity. The state subsidy amount will be calculated based on these benchmark costs and the applicable central assistance.
The subsidy will be disbursed directly into beneficiaries' bank accounts through Direct Benefit Transfer (DBT) by the state's distribution companies. These include Dakshin Gujarat Vij Company (DGVCL), Madhya Gujarat Vij Company (MGVCL), Paschim Gujarat Vij Company (PGVCL), Uttar Gujarat Vij Company (UGVCL) and private distribution licensee Torrent Power. Gujarat Urja Vikas Nigam (GUVNL) has been designated as the nodal agency responsible for managing and allocating state subsidy funds to the respective distribution companies.
According to the government notification, the additional subsidy will apply only to rooftop solar systems commissioned on or after October 22, 2026. The installed DC capacity must not exceed 2.18 kWp; systems exceeding this limit will not qualify for the state subsidy.
Beneficiaries availing the subsidy will also be prohibited from adding further rooftop solar capacity for three years from the installation date. However, residential consumers who have already installed rooftop solar systems under previous programmes with a capacity below 2.18 kWp can apply for the additional subsidy for further installations, provided their cumulative installed capacity remains within the 2.18 kWp limit.
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