Himachal Pradesh has rolled out an ambitious solar panel subsidy scheme under the PM Surya Ghar: Muft Bijli Yojana, offering up to 60% subsidies for rooftop solar installations. The initiative aims to make Himachal a Green Energy State by 2027, promoting clean energy and reducing electricity costs for residents. The state is also setting up model solar villages and expanding solar projects.
Himachal Pradesh Unveils Solar Subsidy Scheme to Boost Green Energy
Himachal Pradesh has taken a significant step toward its goal of becoming a Green Energy State by 2027 with the launch of a solar panel subsidy scheme under the centrally sponsored PM Surya Ghar: Muft Bijli Yojana. The state government is offering substantial financial incentives to encourage households to adopt rooftop solar systems, aiming to reduce electricity costs and promote renewable energy adoption across urban and rural areas.
Under the scheme, a 60% subsidy is provided for rooftop solar systems up to 2 kW, while systems between 2 kW and 3 kW are eligible for a 40% subsidy, capped at 3 kW capacity. For instance, a 2 kW system can receive up to ₹90,000, and a 3 kW system up to ₹1.08 lakh in subsidies, making solar power accessible to middle- and low-income households. The initiative, backed by both central and state governments, is designed to ease the financial burden of installation and encourage widespread adoption.
In addition to household subsidies, the state is implementing the Green Panchayat Scheme, which includes installing 500 kW solar power plants in 100 panchayats. This project, facilitated by the Himachal Pradesh Energy Development Agency (HIMURJA), involves revenue-sharing arrangements to benefit local panchayats, the state government, and other stakeholders. The cabinet has also approved a 5% interest subsidy for solar projects ranging from 100 kW to 1 MW in tribal areas and a 4% subsidy for projects between 250 kW and 2 MW in non-tribal regions, further incentivizing larger-scale solar initiatives.
To showcase the potential of solar energy, Himachal Pradesh plans to establish a model solar village in every district at an estimated cost of ₹1 crore each. In Shimla district, four villages—Tyawal, Chhakdel, Nerwa, and Sunda Bhaura—have been shortlisted, with one to be selected for the pilot project. This initiative aims to demonstrate the benefits of clean energy and inspire other regions to follow suit.
The state’s broader vision includes integrating renewable energy solutions like solar power, electric vehicles, and hydropower to achieve energy self-reliance. Chief Minister Sukhvinder Singh Sukhu has reiterated the government’s commitment to transforming Himachal Pradesh into a clean energy hub, with a ₹905 crore budget allocation for 2025-26 to bolster solar and hydro projects. The state is also offering a 50% subsidy on e-taxis, e-buses, and e-trucks to reduce greenhouse gas emissions from the transport sector, which contributes 16-20% of the state’s emissions.
Despite the enthusiasm, challenges remain. Similar schemes in other states, like Karnataka, have faced hurdles due to misconceptions about fully subsidized systems and complexities in vendor selection and loan processes. In Himachal, the government is working to streamline applications and raise awareness to ensure rural households, in particular, take advantage of the subsidies. The state’s sunny climate, combined with these financial incentives, positions it well to lead India’s renewable energy transition.
Disclaimer: This article is based on recent news reports, government announcements, and policy updates available from reliable sources, including The Tribune, Hindustan Times, and SolarQuarter. Information is accurate as of July 4, 2025, and subject to change based on further developments.