For most housing societies, electricity bills for lifts, water pumps, corridor lighting, and clubhouses are among the biggest recurring expenses. Installing a rooftop solar system can cut these bills by 50–80%, but many societies hesitate because of the high upfront cost.
The good news? The Government of India, along with several state governments, offers solar subsidies for housing societies. These subsidies can reduce the initial investment by 20–40%, making solar more affordable and helping RWAs (Resident Welfare Associations) and Group Housing Societies (GHS) move toward clean, renewable energy.
In this guide, we’ll explain in simple words:
- Who is eligible for the subsidy
- The step-by-step application process
- State-wise benefits
- Challenges and how to overcome them
Who Can Get a Solar Subsidy? (Eligibility)
Not every society automatically qualifies. To receive the solar subsidy for housing societies, you must meet certain conditions:
- Eligible Groups:
- Group Housing Societies (GHS)
- Resident Welfare Associations (RWAs)
- System Size:
- Usually between 10 kW and 500 kW rooftop solar systems.
- This means small societies with very low demand may not qualify, while very large commercial-like setups may fall outside residential schemes.
- Usage Rule:
- Solar must be used for common facilities such as lifts, water pumps, basement fans, corridor lighting, and clubhouses.
- It cannot be used for commercial tenants inside the society.
- Registration Requirement:
- The society must be officially registered and apply through the local DISCOM (power distribution company).
Important Note: Individual flats generally don’t get subsidies under this category. The subsidy applies when the entire society installs a solar plant for common use.
How to Apply for Solar Subsidy (Step-by-Step Process)
The application process can look complicated, but when broken down into steps, it’s manageable. Here’s how it usually works:
Step 1: Society Approval
- The society’s RWA or governing body must pass a resolution approving solar adoption.
- This ensures that all residents are aware and onboard.
Step 2: Site Survey & Proposal
- An EPC partner (like us) will visit the society, check the rooftop area, analyze your electricity bills, and prepare a feasibility report.
- This report includes system size, expected savings, and cost.
Step 3: Apply Through DISCOM Portal
- Every state has an online portal where societies must register the solar project.
- This is where the subsidy application begins.
Step 4: Submit Documents
- Society registration certificate
- Resolution copy from RWA/AGM
- KYC documents (PAN, Aadhaar of authorized signatory)
- Technical proposal from EPC company
Step 5: DISCOM Approval
- The DISCOM reviews the proposal and issues a Technical Feasibility Approval (TFA).
Step 6: Installation
- Once approval is received, the EPC company installs the solar plant, including panels, inverters, mounting structures, and wiring.
Step 7: Inspection & Net Metering
- After installation, DISCOM officers inspect the system.
- A net meter is installed to measure how much electricity you consume and how much you export back to the grid.
Step 8: Subsidy Disbursement
- Once the plant is commissioned, the subsidy is transferred directly to the society’s bank account within a few weeks to a few months.
Tip: Working with an experienced EPC company saves a lot of time because they handle the entire paperwork and follow-up process.
State-Wise Subsidy Benefits for Housing Societies
Subsidy amounts vary depending on the state and local DISCOM policies. Here’s a snapshot of common benefits:
| State | Subsidy/Benefit for Housing Societies | Notes |
|---|---|---|
| Delhi | ₹10,000 per kW up to 500 kW | One of the most generous schemes |
| Maharashtra | 20–25% of project cost | Process via MEDA & DISCOM |
| Karnataka | ₹9,000–₹12,000 per kW | BESCOM portal |
| Tamil Nadu | ₹8,000–₹10,000 per kW | State + MNRE support |
| Gujarat | 20–40% subsidy | Strong residential solar program |
| Other States | Central MNRE rules apply | Check local DISCOM websites |
Since subsidy amounts are revised every year, it’s important to check the latest official portal for your state.
Common Challenges (And How to Overcome Them)
While subsidies are helpful, many societies face delays and rejections because of:
- Lengthy Approvals – DISCOM approvals can take weeks or months.
- Incomplete Documentation – Missing AGM resolutions or society registration papers.
- Confusion About Eligibility – Many RWAs don’t know if they qualify.
- Unreliable Vendors – Choosing a non-empaneled vendor may result in subsidy rejection.
The easiest way to overcome these is to work with a professional EPC partner who is already registered with DISCOM and experienced in subsidy applications.
Why Subsidy + Solar is the Best Deal for Societies
Let’s take a 100 kW solar project as an example:
- Without Subsidy: ₹45 lakhs investment
- With Subsidy: ~₹30–35 lakhs investment
- Annual Savings: ₹12–15 lakhs
- Payback Period: Just 2.5–3 years with subsidy (vs. 4 years without)
This means societies not only save money but also achieve faster ROI and higher annual returns. In fact, solar projects with subsidy often achieve 25–30% ROI per year, much higher than fixed deposits or other safe investments.