Key takeaways
- On 1 September 2026 the Delhi Cabinet, chaired by Chief Minister Rekha Gupta, approved the second amendment to the Delhi Solar Energy Policy, 2023.
- Delhi's own residential capital subsidy rises from a maximum of ₹30,000 to a maximum of ₹78,000 for a 3 kW system. With the central PM Surya Ghar subsidy of ₹78,000, the combined support at 3 kW is ₹1,56,000.
- Homes that used up to 400 units a month in FY 2025-26 are promised a rooftop system of up to 3 kW at zero cost. The government has identified about 2.3 lakh such households and targets March 2027.
- As of 17 September 2026 we are not aware of any tender, vendor empanelment or live application route for either benefit. In our opinion, delivery will take considerably longer than the announcement suggests.
- The sections marked as our view are the author's opinion only. Actual outcomes may differ.
What the Delhi Government Announced
On 1 September 2026 the Delhi Cabinet approved the second amendment to the Delhi Solar Energy Policy, 2023, announced by Chief Minister Rekha Gupta with Energy Minister Ashish Sood. It contains two headline changes for homeowners. First, the Delhi state capital subsidy for residential rooftop solar, paid on top of the central PM Surya Ghar: Muft Bijli Yojana subsidy, goes up from a maximum of ₹30,000 to a maximum of ₹78,000. Second, domestic consumers whose monthly consumption was up to 400 units in financial year 2025-26 are to get a rooftop solar system of up to 3 kW installed free of cost, subject to technical feasibility. The government says roughly 2.3 lakh (2,30,000) such households have been identified, that the programme should add about 500 MW of rooftop capacity, and that the target date is March 2027.
Delhi Solar Subsidy: From ₹30,000 to ₹78,000
Until now Delhi paid ₹10,000 per kW, capped at ₹30,000 per consumer. Under the amendment, the reported state subsidy is ₹52,000 for a 2 kW system and ₹78,000 for a 3 kW system, which matches the central subsidy rupee for rupee at 3 kW. The government's own worked example prices a 3 kW system at about ₹1.75 lakh: ₹78,000 from the Centre, ₹78,000 from Delhi, and a further top-up of about ₹19,000 for eligible homes so that nothing is paid upfront. For a 2 kW system priced at about ₹1.30 lakh, the split is ₹60,000 central, ₹52,000 Delhi and an ₹18,000 top-up. The same announcement cut the net-metering timeline from 75 days to 25 days and waived application and registration fees for systems up to 10 kW.
Free Solar for Homes Using Up to 400 Units: How It Is Meant to Work
For eligible households the state will stack the central subsidy, the Delhi subsidy and a top-up that covers the gap up to the tendered cost of the plant, so the consumer pays nothing for a system of up to 3 kW. Designated vendors are to provide free operation and maintenance for the first five years, and the household keeps net-metering benefits on the units it generates. A 3 kW system in Delhi typically produces around 300 units a month in suitable conditions. The government has also said that households currently receiving the 200-unit free electricity benefit will continue to receive it after solar is installed. The phrase to notice is tendered cost: the free systems are to be procured through a government tender, not chosen by the homeowner.
Our View: Nothing Is Operational on the Ground Yet
This section onwards is opinion. A Cabinet approval is not a working scheme. As of 17 September 2026 we are not aware of any tender being floated, any vendor being empanelled, any published technical specification, or any application route on the portals for either the free solar programme or the ₹78,000 subsidy. The announcement has been made well in advance of the machinery needed to deliver it. The arithmetic is also demanding: Delhi has about 10,000 rooftop systems installed in total today, and the target is 2.3 lakh more in roughly six months. Tendering, bid evaluation, vendor mobilisation, DISCOM feasibility checks and metering for that many homes will, in our assessment, take far longer than March 2027.
What Happened Last Time: The ₹10,000 to ₹30,000 Increase in 2025
We have watched this sequence before. In May 2025 the Delhi Cabinet approved raising the state subsidy from a ₹10,000 cap to ₹30,000 for a 3 kW system. In our experience as a Delhi installer, it took around five to six months before the higher amount was actually being processed. Consumers who read the headline and installed in the weeks after the announcement were, in the cases we saw, paid only the old ₹10,000. We see a real possibility of the same gap now. If you install today expecting ₹78,000 from Delhi, there is no operational guarantee yet that your file will be settled at the new rate rather than the existing ₹30,000.
Our View: Tender-Based Free Solar Will Be Basic
Work awarded through a large government tender is won on price against a minimum specification. We expect the free systems to be standardised and non-customised: a basic low-height structure, standard modules and inverter, the shortest practical cable routes, and installation teams working to volume targets. That is not a criticism of any particular vendor, it is simply how lowest-cost tendering works. A homeowner who wants an elevated structure that keeps the terrace usable, a specific panel or inverter brand, a layout designed around shadows and water tanks, or a larger system than 3 kW should not expect a tender to provide it. Five years of free maintenance is welcome, but a rooftop plant should last about 25 years, and build quality decides what happens in years six to twenty-five.
Our View: The 200-Unit Free Electricity Subsidy May Not Survive
Officially, the 200-unit free electricity benefit continues, and we want to be clear that the government has said so. Our opinion is different on where this leads. Delhi currently gives domestic consumers a 100 percent subsidy up to 200 units and a 50 percent subsidy up to 400 units, which costs the exchequer thousands of crores every year. Free solar is aimed at exactly the households that receive that subsidy. Once a home has a free 3 kW system generating around 300 units a month, the argument for also paying its electricity subsidy becomes much weaker. We think there is a strong possibility that, after free solar is rolled out, the 200-unit and 50-percent-up-to-400-unit subsidies are reduced or withdrawn. Free solar also makes that politically manageable, because it becomes difficult for consumers or the opposition to raise a hue and cry when the household has already been handed a free power plant. This is a forecast, not a fact, and nothing of the kind has been announced.
What Should Delhi Homeowners Do Now?
If your consumption was up to 400 units a month in FY 2025-26 and you are comfortable with a standard 3 kW system, it is reasonable to wait and watch for the official application process, while accepting that the wait may be long. Do not pay anyone who claims to be able to register you for free solar today; no such process has been published. If your consumption is above 400 units, the free scheme does not apply to you, and every month of waiting is a month of full electricity bills. In that case, size the system on your own bill, treat the central ₹78,000 and the existing Delhi ₹30,000 as the working assumption, and regard anything higher as a bonus if it arrives. Whichever route you take, confirm the live position on the PM Surya Ghar National Portal, the Delhi Solar Portal and with your DISCOM before you pay an advance.
Frequently asked questions
Has the Delhi solar subsidy increased to ₹78,000?
Yes, on paper. On 1 September 2026 the Delhi Cabinet approved raising the state rooftop solar subsidy from a maximum of ₹30,000 to a maximum of ₹78,000 for a 3 kW residential system, on top of the central ₹78,000. As of 17 September 2026 we have not seen an operational process for claiming the higher amount.
Who is eligible for free solar in Delhi?
Domestic consumers whose monthly electricity consumption was up to 400 units in financial year 2025-26, subject to technical feasibility of the roof. The government says about 2.3 lakh households have been identified. The free system is up to 3 kW.
How do I apply for the Delhi free solar scheme?
As of 17 September 2026 no application process, tender or vendor list has been published. Watch the Delhi Solar Portal and your DISCOM (BSES Rajdhani, BSES Yamuna or Tata Power-DDL) for the official route, and do not pay any agent who offers to register you.
If I install solar now, will I get ₹78,000 from the Delhi government?
There is no guarantee yet. When the subsidy was raised from ₹10,000 to ₹30,000 in 2025, implementation took about five to six months in our experience, and consumers who installed soon after the announcement were paid the old amount. Plan on the existing ₹30,000 and treat a higher payout as upside.
Will the 200 units free electricity subsidy continue after free solar?
The Delhi government has said it will continue. Our opinion is that there is a strong possibility the 200-unit free and 50-percent-up-to-400-unit subsidies are reduced or withdrawn after free solar is rolled out. That is a forecast only; nothing has been announced.
Is the free government solar system as good as a privately installed one?
In our view, tender-based systems will meet a basic specification and will not be customised to the roof. Homeowners who want elevated structures, chosen brands, shadow-specific design or more than 3 kW will generally need a private installation.
What is the total solar subsidy in Delhi for a 3 kW system?
Under the September 2026 Cabinet decision it is ₹78,000 from the Centre under PM Surya Ghar plus ₹78,000 from Delhi, a total of ₹1,56,000. Until the new rate is operational, the working figure is ₹78,000 plus ₹30,000, a total of ₹1,08,000.
Author's opinion, not a statement of fact
The sections marked as our view reflect the personal opinion of the author, based on Y2 Solar's experience installing rooftop solar in Delhi. They are not statements of fact about government policy or intent. The actual implementation, timelines, specifications and the future of Delhi's electricity subsidies may be different from what is expected here. Verify the current position on the official portals before making a decision.
Decision pathway
Continue with the definitive service guide.
This article explains one part of the decision. Current service scope, next steps and conversion guidance are maintained on the canonical parent page.
PM Surya Ghar and Delhi subsidySources, review and limitations
Guidance is informed by Y2 Solar project and approval experience. Costs, generation, savings, eligibility and timelines are estimates or process guidance—not guarantees. Confirm changing scheme and utility requirements on the official portals before procurement or submission.
- The Tribune: zero-cost rooftop solar for 2.3 lakh households
- Renewable Watch: Delhi clears free rooftop solar scheme
- Millennium Post: subsidy break-up by system size
- The Tribune (May 2025): Cabinet okays ₹30,000 subsidy
- PM Surya Ghar National Portal
- Delhi Solar Portal
Not sure whether to wait or install?
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