UP rooftop solar subsidy 2026: the ₹15,000 per kW state top-up

Uttar Pradesh is one of the few states in our rates file where the extra money is written in a state document and is visibly being paid. That makes UP quotes easier to sell and easier to get wrong. Customers hear "₹1,08,000 milega" and assume it applies at any size. It doesn't. This post sets out the rule, the numbers at 1, 2 and 3 kW, and when each part of the money arrives.

The short answer

A UP household on PM Surya Ghar gets two subsidies:

• Central: ₹30,000 per kW for the first 2 kW and ₹18,000 for the third kW, capped at ₹78,000 (MNRE scheme guidelines, effective 13 February 2024, verified).
• State: ₹15,000 per kW, capped at ₹30,000 per consumer, in addition to the central subsidy (UP Solar Energy Policy 2022, clause 7.3, verified on 30 September 2026).

Together, by system size:

• 1 kW: ₹30,000 + ₹15,000 = ₹45,000
• 2 kW: ₹60,000 + ₹30,000 = ₹90,000
• 3 kW: ₹78,000 + ₹30,000 = ₹1,08,000
• 5 kW: still ₹78,000 + ₹30,000 = ₹1,08,000

What the policy says

Clause 7.3(a) of the policy reads: "State Government will provide subsidy of Rs 15000/KW to a maximum limit of subsidy Rs 30000/- per consumer." Clause 7.3(b) adds that it "will be in addition to any Central Financial Assistance available from Ministry of New and Renewable Energy."

Two practical points follow from the text:

• The cap is per consumer, not per kW. The state part stops growing at 2 kW.
• The policy has a life. Clause 3.2 keeps it in operation for five years or until the government notifies a new policy. The policy text carries no issue date, so watch UPNEDA's notices rather than counting the years yourself.

Is it still being paid? UPNEDA's own guidance on availing the state subsidy says it releases the state amount after the central subsidy has been disbursed. UPNEDA's State Subsidy List dated 24 September 2026 lists state subsidy amounts for 33,979 installations. 33,977 of them match the formula above exactly, ₹15,000 per installed kW and never more than ₹30,000, and the other two are within ₹75 of it.

Where the cap bites

Look at what each kW earns:

• The first and second kW each earn ₹45,000: ₹30,000 central plus ₹15,000 state.
• The third kW earns ₹18,000, all of it central.
• Every kW above 3 earns nothing.

So in UP, a 2 kW system gets the most subsidy per kW, and a 3 kW system gets the most in total. Above 3 kW the customer pays full price for each extra kW. That is not a reason to undersize a home with a large bill. It is a reason to show the customer, in writing, which part of the system is subsidised.

What the customer pays at MNRE's benchmark

MNRE's benchmark cost is ₹50,000 per kW up to 2 kW and ₹45,000 per kW above that. It is the reference the central subsidy is set against, not a market price, and the guidelines do not say whether it includes GST. We add GST on top at the blended 8.9% that comes from the 70:30 goods and services split (Notification 9/2025-Integrated Tax (Rate), effective 22 September 2025, verified).

• 1 kW: ₹50,000 + ₹4,450 GST = ₹54,450. Less ₹45,000 of subsidy: ₹9,450.
• 2 kW: ₹1,00,000 + ₹8,900 GST = ₹1,08,900. Less ₹90,000: ₹18,900.
• 3 kW: ₹1,45,000 + ₹12,905 GST = ₹1,57,905. Less ₹1,08,000: ₹49,905.

Your price will differ from the benchmark. The subsidy won't.

The bill it saves

UPERC's order of 2 July 2026 sets the FY 2026-27 rate schedule for UP's state DISCOMs. We verified the domestic rates from the copy hosted by PVVNL. The order says one rate schedule covers DVVNL, MVVNL, PVVNL, PuVVNL and KESCO.

Urban metered domestic, per unit, each month:

• Up to 150 units: ₹5.50
• 151 to 300 units: ₹6.00
• Above 300 units: ₹6.50
• Fixed charge: ₹110 per kW of load per month

Rural homes pay less: ₹3.35, ₹3.85, ₹5.00 and ₹5.50 per unit for up to 100, 101 to 150, 151 to 300 and above 300 units, with a fixed charge of ₹90 per kW.

Worked example. An urban household on a 3 kW load uses 450 units a month. The energy charge is 150 × ₹5.50 + 150 × ₹6.00 + 150 × ₹6.50 = ₹2,700. The fixed charge is ₹330.

UPNEDA's rooftop FAQ puts the Uttar Pradesh average at 270 units a month from 2 kW, about 4.5 units per kW per day. Our rates file plans on a more conservative 4. At that rate 3 kW makes about 360 units a month. If those units are set off against consumption, the home imports 90 units: ₹495 of energy charge. The saving is ₹2,205 a month on energy. Against ₹49,905 after both subsidies, that is about 23 months.

How UP settles solar units on the bill is set by the regulator's net-metering rules, which are not in our rates file. Check your DISCOM portal before you promise the saving.

What goes wrong on UP quotes

• ₹1,08,000 promised on a 2 kW system. At 2 kW the total is ₹90,000. The extra ₹18,000 only comes with the third kW.
• One date for both subsidies. The state amount follows the central one. Tell the customer to expect two credits, not one.
• A second system on the same connection. The state cap is per consumer. A home that took the state amount for an earlier system should not be quoted it again until you have checked.
• Rural rates, urban promise. The rural energy charge is lower on every slab, so the saving is lower too. Quote from the customer's own bill.

Frequently asked questions

Is the UP state subsidy still being paid in 2026?

Yes, as far as the public record shows. UPNEDA's State Subsidy List dated 24 September 2026 lists amounts matching ₹15,000 per kW up to ₹30,000.

Does a 5 kW system get more state subsidy than 3 kW?

No. The state part stops at ₹30,000, which is reached at 2 kW. The central part stops at ₹78,000, reached at 3 kW.

When does the state money reach the customer?

After the central subsidy. The 2022 policy's timeline gives UPNEDA 15 days from the joint commissioning report, but UPNEDA's own guidance says it pays once MNRE's central release list arrives. Don't promise a date.

Does the top-up apply in every UP DISCOM area?

It is a state policy and does not name DISCOMs. Registration still runs on the national portal with the consumer number from the bill.

Put your customer's size into the subsidy calculator: it adds the UP top-up with its ₹30,000 cap. The solar cost calculator turns it into a net price.