Great news for homeowners in Andhra Pradesh and across India! From January 1, 2026, the central government has announced a 23% increase in the Central Financial Assistance (CFA) subsidy for rooftop solar installations under the PM Surya Ghar: Muft Bijli Yojana. This major boost makes solar panels more affordable, helping middle-class families generate free electricity (up to 300 units/month) and reduce power bills by thousands annually.
With the scheme extended till FY 2026-27, eligible residents can now get up to ₹78,000 (or higher post-increase) in direct subsidy – a golden opportunity to go solar before electricity costs rise further!
Know Complete Details of Solar Panel Subsidy Increase 2026
The PM Surya Ghar: Muft Bijli Yojana (launched in 2024) targets 1 crore residential rooftop solar installations by March 2027. Key updates from January 2026:
- 23% CFA Hike: Subsidy raised to make 1-3 kW systems even cheaper (benchmark: earlier ₹30,000/kW up to 2 kW, ₹78,000 cap for 3 kW+; now enhanced).
- Subsidy Structure: 60% of benchmark cost for up to 2 kW, 40% for additional capacity (2-3 kW).
- Expected New Amounts: Around ₹36,000-₹40,000/kW for 1-2 kW (post-23% increase), capped at ~₹95,000-₹1 lakh for 3 kW+ systems.
- Total Outlay: ₹75,021 crore; over 1.45 crore registrations already.
- Eligibility: Indian citizen, own house with suitable roof, valid electricity connection, no prior rooftop solar subsidy availed.
Andhra Pradesh DISCOMs (APSPDCL/APCPDCL) fully support as State Implementation Agencies – additional SGST reimbursement possible.
How Much Savings & Benefits in Andhra Pradesh
- 1 kW System: Earlier ~₹30,000 subsidy → now ~₹36,900 (23% more); total cost after subsidy ~₹40,000-₹50,000.
- 2 kW System: Earlier ~₹60,000 → now ~₹73,800; monthly free power up to 300 units.
- 3 kW System: Earlier ~₹78,000 → now potentially ₹95,000+; save ₹5,000-₹8,000/month on bills.
- Payback: 4-6 years; free power for 25+ years.
- Other Perks: Net metering, loan up to ₹10 lakh at low interest, job creation in solar sector.
In Vijayawada (Andhra Pradesh), high summer bills make this subsidy a big relief!
How to Apply for Solar Subsidy in Andhra Pradesh (Step-by-Step)
Simple online process via national portal:
- Visit pmsuryaghar.gov.in (official PM Surya Ghar portal).
- Register with mobile number, Aadhaar, email.
- Select state (Andhra Pradesh) and DISCOM (APSPDCL/APCPDCL).
- Fill application: Roof details, electricity bill number, system capacity (1-3 kW recommended).
- Choose registered vendor (list available on portal).
- Upload documents: Aadhaar, electricity bill, roof ownership proof, bank details.
- Submit and get application ID.
- Vendor installs system; DISCOM inspects and commissions.
- Subsidy credited directly to bank account within 30 days via DBT.
Helpline: 15555 (toll-free).
Tip: Apply early – registrations already over 1.45 crore; vendors may have waiting lists.
How It Affects You – Big Benefits for Andhra Pradesh Residents
- Middle-Class Families: Cut ₹3,000-₹8,000 monthly electricity bill; ROI faster with 23% extra subsidy.
- Vijayawada Homeowners: High solar potential + net metering – sell excess power back to grid.
- Eco-Friendly: Reduce carbon footprint; support Viksit Bharat green energy goal.
- Edge Cases: Rural homes eligible; renters can apply with owner NOC; commercial not covered (only residential).
- Nuances: Subsidy capped at 3 kW; choose empanelled vendor for quality.
This 23% increase makes 2026 the best year to go solar in Andhra Pradesh!
Planning rooftop solar in Vijayawada? How much bill reduction do you expect? Comment below and share your views!
Stay updated with us for all latest solar subsidies, PM Surya Ghar rules and green energy updates in 2026.