Introduction
Installing a rooftop solar system in Andhra Pradesh can lower dependence on grid electricity, but the initial installation cost can be a key consideration. Government financial assistance can help eligible households reduce this upfront expense.
The solar subsidy in Andhra Pradesh is primarily available through the centre's PM Surya Ghar: Muft Bijli Yojana (PMSG: MBY), with eligible residential consumers able to apply for central financial assistance through the designated process. This guide covers the subsidy available, eligibility, costs, and how to apply.
Why is Rooftop Solar Worth Considering in Andhra Pradesh?
Solar panels can generate electricity for household use while reducing dependence on grid power. The benefits can include:
- Lower electricity bills through self-generated power
- Better use of available rooftop space
- Reduced dependence on conventional electricity sources
- Potential financial support under the central rooftop solar scheme
- Net metering options for eligible grid-connected systems
The Andhra Pradesh government also continues to support grid-connected rooftop solar through the New & Renewable Energy Development Corporation of AP Ltd (NREDCAP) programmes. NREDCAP has a 2026–27 EOI for empanelment of 1 - 500 kWp grid-connected rooftop solar systems under net metering.
What is the Solar Panel Price in Andhra Pradesh in 2026?
Solar system prices in Andhra Pradesh vary based on system capacity, equipment, installation requirements, and site conditions.
For subsidy calculations, the central government uses a benchmark cost rather than the final market price.
| System Capacity | Benchmark Cost Used for CFA Calculation |
|---|---|
| First 2 kW | ₹50,000 per kW |
| Additional 1 kW | ₹45,000 per kW |
| Above 3 kW | No additional CFA |
These benchmark figures form the basis for calculating central financial assistance under PM Surya Ghar.
Your final installation cost can differ from the benchmark. Request a detailed quotation from an eligible vendor before installation.
What Subsidy Is Available for Solar Panels in Andhra Pradesh in 2026?
The main Andhra Pradesh solar subsidy available to eligible residential consumers comes through the central PM Surya Ghar scheme.
PM Surya Ghar Muft Bijli Yojana: Central Subsidy
The PM Surya Ghar Muft Bijli Yojana provides Central Financial Assistance (CFA) for eligible residential rooftop systems.
| Rooftop Capacity | Central Subsidy |
|---|---|
| Up to 2 kW | ₹30,000 per kW |
| Additional 1 kW | ₹18,000 |
| Above 3 kW | No additional subsidy |
| Maximum for an individual household | ₹78,000 |
The central guidelines provide 60% of the benchmark cost for the first 2 kW and 40% for the additional 1 kW.
Therefore, a household installing a 3 kW eligible system can receive up to ₹78,000 in central assistance.
Does Andhra Pradesh Provide an Additional State Solar Subsidy?
The position has changed in 2026. Earlier, Andhra Pradesh operational guidelines included SGST reimbursement for eligible residential rooftop projects under PM Surya Ghar.
However, a 2026 amendment deleted the provision covering this residential rooftop SGST subsidy.
The earlier 100% SGST reimbursement for eligible residential rooftop solar projects under PM Surya Ghar was deleted through a 2026 amendment to the Andhra Pradesh Integrated Clean Energy Policy's (APICEP) operational guidelines.
Therefore, the earlier SGST benefit should not be presented as a current additional subsidy. Consumers should check the latest NREDCAP notifications before applying.
For the latest AP rooftop solar subsidy updates, check the NREDCAP and the relevant government notifications before applying.
How Does Net Metering Work in Andhra Pradesh?
Net metering allows eligible rooftop solar consumers to export surplus electricity to the grid.
Under Andhra Pradesh's regulatory framework, eligible consumers can use grid-interactive rooftop solar systems under net or gross metering arrangements.
APERC's current regulations include the 2025 first amendment to its 2023 rooftop solar net/gross metering regulation.
The basic process is:
- Your solar system generates electricity.
- Your home uses the electricity generated.
- Surplus generation can flow to the grid.
- The meter records electricity exchanged with the grid.
- Billing is handled according to the applicable metering arrangement.
Eligibility and approval depend on the applicable Distribution Company (DISCOM) requirements.
How to Apply for Solar Subsidy in Andhra Pradesh?
Here are the steps to apply for the solar subsidy in Andhra Pradesh:
Step 1: Register on the National Portal
Visit the official PM Surya Ghar rooftop solar portal and register using your electricity consumer details.
Step 2: Submit Your Application
Enter the required consumer and electricity connection details. Select Andhra Pradesh and the relevant DISCOM. The national portal lists Andhra Pradesh's DISCOMs and their rooftop solar application channels.
Step 3: Obtain DISCOM Approval
Wait for the required technical feasibility or approval from the concerned DISCOM. Do not begin installation without completing the required approval process.
Step 4: Select an Eligible Vendor
Choose a registered vendor through the national portal and proceed with installation after the required approval. The national portal provides access to vendor-related rooftop solar services.
Step 5: Install the Solar System
The selected vendor installs the approved rooftop solar system according to applicable technical requirements.
Step 6: Complete Inspection and Metering
The DISCOM completes the required inspection and commissioning process. A net meter can then be installed where applicable.
Step 7: Receive the Subsidy
After the required commissioning and verification steps, the eligible central subsidy is processed through the scheme's prescribed mechanism.
What Should You Do Next to Claim Solar Subsidy in Andhra Pradesh?
The first step is to check your electricity connection, rooftop suitability, system capacity, and current subsidy eligibility.
The AP solar scheme landscape can change through government notifications. Always verify the latest requirements before making a payment or signing an installation contract.
For reliable solar solutions, Eastman Auto & Power Limited offers solar products and solutions that can support households exploring rooftop solar installations. Check the latest government guidelines, select an eligible vendor, and complete the application through the official portal before installation.
78728 78728