Keyur Rakholiya Rooftop Solar Programme Phase II is MNRE's Grid Connected Rooftop Solar Programme approved in 2019 to expand rooftop solar in India. For residential systems it offered Central Financial Assistance of 40% up to 3 kW and 20% from 3 to 10 kW. From 2024, PM Surya Ghar: Muft Bijli Yojana replaced it for new residential subsidy applications.
Subsidy Structure (2024)
| System size | CFA % | Cap per kW |
|---|---|---|
| 1-3 kW | 40% | ₹14,588/kW |
| 3-10 kW | 20% | ₹7,294/kW |
| > 10 kW | 0% | n/a |
Key Takeaways
- Rooftop Solar Programme Phase II: MNRE residential subsidy scheme.
- 40% subsidy first 3 kW; 20% next 7 kW; 0% above 10 kW.
- Apply via National Portal for Rooftop Solar.
- Requires ALMM-listed equipment, DISCOM-empaneled installer.
- Major growth driver for Indian residential solar.
How the Subsidy Actually Gets Calculated
The CFA under Phase II is not a flat percentage of whatever the installer quotes, it’s a percentage of the MNRE-published benchmark cost per kW, up to the caps shown in the table above. That distinction matters for anyone sizing a system: if a household’s actual installation cost runs higher than the benchmark, the subsidy is still capped at the benchmark figure, so the homeowner absorbs the difference.
Because the 40% tier only applies to the first 3 kW and the 20% tier only to the next 7 kW, the blended subsidy percentage falls as system size grows, which is one reason most Phase II residential quotes cluster around the 3 kW and 5-6 kW size bands rather than scaling arbitrarily.
Worked Example
Take a 5 kW residential system quoted near the MNRE benchmark cost. The first 3 kW qualifies for 40% CFA against the ₹14,588/kW cap, and the remaining 2 kW (within the 3-10 kW band) qualifies for 20% CFA against the ₹7,294/kW cap.
Adding those two tiers together gives the total CFA disbursed for that installation, a blended subsidy rate meaningfully below 40% once the whole 5 kW is accounted for. This tiered structure is why a proposal-stage design needs to model system size against the CFA bands early, rather than treating the subsidy as a single flat discount applied to the full quote.
Related Reading
Because Phase II sits inside the broader Indian rooftop compliance stack, it’s worth reading alongside Solar Permits India: State-Wise Processing Times, which covers how DISCOM approval timelines vary by state once a Phase II application clears the National Portal, and the Solar Permit Design FAQ for the broader plan-set questions EPCs run into during DISCOM technical feasibility review.
For a look at how residential system sizing plays out on the ground in India, Heaven Green Energy’s home solar sizing guide and its Gujarat rooftop solar overview both walk through how households land on a 3 kW versus 5-10 kW installation before the CFA tiers are even applied.
The scheme paid CFA on systems that used DCR modules, with net metering applications handled by the local DISCOM.
Disclosure: Heaven Green Energy is a Heaven Designs group company.
Frequently Asked Questions
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