31 October 2026
A Gujarat household can now install a 2 kW rooftop solar system for about ₹10,000. SC and ST households pay about ₹5,000. The central PM Surya Ghar subsidy covers ₹60,000 of the ₹1,00,000 benchmark cost, the new Gujarat state subsidy covers the ₹30,000 that remains, and the homeowner pays the last 10%.
The state cabinet approved this on 22 October 2026 through an Energy and Petrochemicals Department resolution. Around ₹1,000 crore has been set aside and roughly three lakh households are expected to benefit. This guide explains exactly how the 90% is made up, the two conditions that disqualify people most often, and the module requirement that can cost you both subsidies if your installer gets it wrong.
Two separate subsidies stack. The central one has existed since 2024; the state one is new. Both are calculated on MNRE's benchmark cost, not on whatever your installer quotes.
| System size | Benchmark cost | Central subsidy | You pay (general) | Gujarat covers |
| 1 kW | ₹50,000 | ₹30,000 | ₹5,000 | ₹15,000 |
| 2 kW | ₹1,00,000 | ₹60,000 | ₹10,000 | ₹30,000 |
| 2 kW (SC/ST) | ₹1,00,000 | ₹60,000 | ₹5,000 | ₹35,000 |
The central figures come straight from the MNRE operational guidelines for PM-Surya Ghar: Muft Bijli Yojana. The benchmark cost is fixed at ₹50,000 per kW for the first 2 kW of capacity, and central assistance is 60% of that benchmark for the first 2 kWp, which works out to ₹30,000 per kWp. The Gujarat resolution then fills the gap between that, your contribution and the benchmark.
Your share is capped at 10% of benchmark cost for general category households and 5% for SC and ST households. That is where the shorthand "90% subsidy" comes from, and for once the shorthand is accurate.
A 2 kW system in Gujarat generates roughly 260 to 300 units a month, or 3,100 to 3,600 units a year. Gujarat sits among the best states in the country for solar yield, which is why the same system produces noticeably more here than in Bihar or West Bengal.
At a domestic tariff near ₹8 per unit, that is ₹25,000 to ₹29,000 of electricity a year, against a one-time payment of about ₹10,000. The system pays for itself inside six months and then runs for 25 years. There is no other household purchase in India with that arithmetic behind it.
A 2 kW array covers most of the consumption of a home using 250 to 300 units a month: lights, fans, a refrigerator, a washing machine and one air conditioner used seasonally. Households consistently above that should read our 3 kW system guide, though be aware that going larger forfeits this state subsidy entirely. More on that below.
Payment of both subsidies is by Direct Benefit Transfer into your bank account after commissioning. Neither amount passes through the installer, so be careful with any quote presented as "subsidy already adjusted".
Install 2.18 kWp and you get the state subsidy. Install 2.4 kWp and you get nothing from the state, not a reduced amount. The cap is on installed DC capacity, which is the total wattage of the panels, not the inverter rating.
This catches people because installers often oversize the DC array slightly. Four modules of 550 W is 2.2 kWp, which is over the line. Three modules of 725 Wp is 2.175 kWp, which is inside it. Ask for the DC capacity in writing, and check the arithmetic yourself before you sign.
Taking the state subsidy bars you from adding rooftop solar capacity for three years from the installation date. If you expect to buy an electric vehicle or add air conditioning soon, work out your real requirement now. The alternative is a larger system today without the state subsidy, which is a far more expensive proposition.
This is where the most damaging misinformation is circulating, so it is worth being precise.
Subsidised systems under PM Surya Ghar must use DCR modules: panels where both the cells and the module are made in India. MNRE has clarified that relaxations to the ALMM List-II timeline do not relax the DCR requirement. A single non-DCR module in the array makes the whole installation ineligible for central assistance.
Non-DCR panels are permitted on rooftops, but only through the "Give It Up" route, where the consumer formally forgoes central financial assistance. That route is open to residential consumers until the scheme period ends on 31 March 2027, and once an installation is submitted without a DCR certificate the choice cannot be reversed.
Here is the part that matters in Gujarat right now. The state subsidy is calculated as the eligible cost remaining after deducting central assistance and your contribution. Forgo the central subsidy and there is no stack for the state money to sit on top of. Choosing non-DCR panels in Gujarat therefore does not cost you ₹60,000. It costs you ₹90,000.
If an installer offers you cheaper non-DCR panels "with subsidy", that combination does not exist. Ask for the module model number, confirm it is DCR, and verify the model on the ALMM list. Our guide to BIS certification explains how to check a module's registration number properly.
DCR modules carry a significant premium because India's cell manufacturing capacity lags far behind its module capacity. A Karnataka tariff order using April 2026 prices assumed ₹22.3 per watt for DCR modules against ₹13.8 per watt for non-DCR, and cells make up roughly 60% of what a module costs to build.
Under this scheme that premium is largely absorbed by the subsidy stack rather than by you, because your contribution is capped at a percentage of the benchmark rather than being a share of the actual module price. It is one of the few situations in Indian solar where the DCR premium is somebody else's problem. Our guide to solar panel technology in India covers what separates the cell types you will be offered.
Different reports of this announcement quote slightly different rupee amounts. Some give the 1 kW benchmark as ₹54,000 with central assistance of ₹32,400, and the 2 kW benchmark as ₹1,07,200 with ₹62,800 central. The MNRE guidelines fix the benchmark at ₹50,000 per kW for the first 2 kW, which produces the ₹30,000 and ₹60,000 figures used in this guide, and those reconcile with the state shares of ₹15,000 and ₹30,000 reported in the trade press.
The difference is a few hundred rupees on your contribution either way. Confirm the final figures with your DISCOM before you sign, because the state component was announced recently and the application mechanics were still being communicated to the DISCOMs at the end of October.
Credence Solar manufactures BIS-certified modules at a 2.2 GW facility in Rajkot, and holds BIS approval up to 745 Wp. For DCR availability on a specific project, or for module specifications, contact our team or download the product datasheets. Homeowners buy through local installers and dealers rather than from us directly, so ask your installer which model they are quoting.
Gujarat has made a 2 kW rooftop system close to free for residential consumers: roughly ₹10,000 for general households and ₹5,000 for SC and ST households, against electricity worth around ₹25,000 a year. The scheme is capped at 2.18 kWp, applies only to systems commissioned on or after 22 October 2026, and locks you out of adding capacity for three years.
The one decision that can undo all of it is the module. DCR panels are mandatory for the central subsidy, and because the state money is calculated on top of the central money, non-DCR panels forfeit both. Get the model number in writing, check it against the ALMM list, and confirm the DC capacity before anyone drills a hole in your roof.
About ₹10,000 for general category households and about ₹5,000 for SC and ST households, where the system is within 2.18 kWp and commissioned on or after 22 October 2026. The central PM Surya Ghar subsidy covers ₹60,000 of the ₹1,00,000 benchmark cost and the Gujarat state subsidy covers the remaining ₹30,000.
Effectively yes, for small systems. The Energy and Petrochemicals Department resolution of 22 October 2026 caps the consumer's contribution at 10% of benchmark cost for general households and 5% for SC and ST households, with the state covering whatever remains after central assistance. It applies only to systems up to 2.18 kWp.
No. Central assistance requires DCR modules, where both cells and module are made in India, and a single non-DCR module makes the installation ineligible. Because the Gujarat subsidy is calculated after deducting central assistance, losing the central subsidy means losing the state subsidy too. Non-DCR panels are only permitted via the "Give It Up" route, which forgoes subsidy altogether.
You lose the state subsidy entirely, not proportionally. The cap is on total installed DC capacity, so check the panel wattage multiplied by the number of panels rather than the inverter rating. Central PM Surya Ghar assistance still applies to larger systems at the usual rates of ₹30,000 per kWp up to 2 kW and ₹18,000 for the third kW.
Roughly 260 to 300 units a month, or 3,100 to 3,600 units a year, which is worth about ₹25,000 to ₹29,000 annually at a domestic tariff near ₹8 per unit. Gujarat's solar yield is among the highest in India, so the same system generates more here than in eastern or hill states.
Not for three years from the installation date. Beneficiaries of the state subsidy are barred from adding rooftop capacity during that period. If you expect consumption to rise, for instance with an electric vehicle, size the system accordingly now or weigh a larger system without the state subsidy.
