Maharashtra Unveils SMART Solar Scheme Offering up to 95 Percent Subsidy
Maharashtra has launched the Swayampoorna Maharashtra Residential Rooftop (SMART) Solar Scheme to help low-income households consuming less than 100 units of electricity per month become power self-sufficient, offering subsidies of up to 95 percent for installing rooftop solar systems under the state’s new initiative.
October 07, 2025. By Mrinmoy Dey
Under the initiative, around 500,000 households will receive additional state subsidies – over and above the central government’s aid under the PM Surya Ghar Muft Bijli Yojana – to install rooftop solar systems. The program aims to make low-income families self-sufficient in electricity and create a potential source of additional income through surplus power generation.
As per the Maharashtra government resolution (GR), the benchmark cost per kW has been fixed at INR 50,000. Of this, BPL households will contribute only INR 2,500 per kW, with the state government providing INR 17,500 and the central government INR 30,000 – covering about 95 percent of the total cost.
For economically weaker general category consumers, the contribution will be INR 10,000, with the state and central governments contributing INR 10,000 and INR 30,000, respectively, amounting to a total of 80 percent subsidy.
Similarly, Scheduled Caste (SC) and Scheduled Tribe (ST) consumers will each pay INR 5,000, supported by an INR 15,000 state subsidy and INR 30,000 central subsidy, offering them a 90 percent subsidy on installation costs.
As per the GR, the state will allocate INR 330 crore in FY 2025-26 and INR 325 crore in FY 2026–27 to fund the scheme, which will be implemented by Maharashtra State Electricity Distribution Company (MSEDCL).
Jaideep N. Malaviya, Managing Director, Malaviya Solar Energy Consultancy, and Director, International Solar Energy Society, Germany remarked, “The Maharashtra government’s SMART Solar Scheme for BPL families is a welcome initiative. However, it could have been more impactful if it had included solar water heaters, which directly contribute to climate change mitigation by reducing the burning of firewood. In fact, solar PV is nearly four times less efficient than direct solar thermal heating for such applications.”He further added, “From an implementation standpoint, vendors may find it economically challenging to provide a five-year warranty for systems installed in remote areas. Moreover, sustaining technically trained manpower for ongoing maintenance will remain a hurdle unless there’s sufficient installation volume in a particular region.”
Commenting on a personal capacity, Kanchan Bhosale, Deputy Executive Engineer, MSEDCL, said, “The SMART Solar scheme would definitely be helpful to provide electricity to remotely located households which are not accessible and building infrastructure has not been possible so far as it is not financially viable for a DISCOM. Maharashtra, being a large and diverse state, has many such pockets, and these communities too deserve access to reliable power to drive their development. The scheme will certainly benefit this population.”She further added, “Rooftop solar, meanwhile, is steadily gaining momentum. Such schemes bring in the inquisitiveness from different layers of society and definitely help to boost the initiatives taken by the Government.”
Balkrishna Lohokare, Director of Unishark Powertech Solutions opines, “The SMART Solar Scheme is poised to significantly accelerate rooftop solar adoption across Maharashtra by making solar energy more accessible and affordable for households that were previously excluded due to financial barriers. This inclusive approach will create a broader base of solar users, increase public awareness, and normalise solar as a mainstream energy solution. As adoption scales up, it will drive demand for local manufacturing, installation, and maintenance services – stimulating growth across the renewable energy value chain.”He further added that the scheme will encourage innovation in financing models, foster public-private partnerships, and attract new investments into the green energy sector. By building technical capacity at the grassroots level, it will create a skilled workforce and generate sustainable livelihoods. “Over time, this initiative will not only help the state meet its renewable energy targets but also position Maharashtra as a leader in decentralised, community-driven clean energy transformation – setting an example for other states to emulate,” asserted Lohokare.
Akshay Wakade, Founder, Sunarc Enterprises, however, is sceptical about benchmark price set by the government. He remarked, “The government has set a benchmark cost of INR 50,000/kW under the SMART Scheme, which is simply not feasible in current market conditions. Once the scheme is publicised, consumers will naturally expect installers to match these benchmark rates. For instance, a 3 kW rooftop system typically costs between INR 2-2.1 lakh, but due to this pricing benchmark, customers will start demanding installations at around INR 1.5 lakh, which just isn’t realistic.”
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