More than three lakh families across Gujarat are set to benefit from an enhanced state subsidy on rooftop solar systems, with the state government announcing on Wednesday, 21 October 2026 that general-category households will bear only 10 per cent of installation costs and those from Scheduled Castes and Scheduled Tribes (SC/ST) just 5 per cent. The decision was cleared at a Cabinet meeting chaired by Chief Minister Bhupendra Patel in Gandhinagar, and the state is expected to commit approximately ₹1,000 crore to the additional subsidy.

What the Subsidy Covers

The enhanced assistance applies to residential rooftop solar systems with a capacity of up to 2 kW. The state government will bridge the gap between the Central subsidy available under the PM Surya Ghar: Muft Bijli Yojana and the beneficiary's prescribed contribution, effectively absorbing the bulk of the installation cost.

For a 1 kW system benchmarked at ₹54,000, a general-category household pays ₹5,400 while an SC/ST household pays just ₹2,700. The Centre contributes ₹32,400, with the state topping up ₹16,200 for general-category and ₹18,900 for SC/ST beneficiaries.

For a 2 kW system benchmarked at ₹1,07,200, the beneficiary's share is ₹10,720 (general) and ₹5,360 (SC/ST). The Central government provides ₹62,800, while the state subsidy stands at ₹33,600 for general-category and ₹38,960 for SC/ST households.

What the Government Said

Spokesperson minister Jitu Vaghani said the decision is aimed at making rooftop solar installations more affordable and helping households reduce their dependence on conventional electricity. 'The decision is aimed at making rooftop solar installations more affordable and allowing more households to reduce their dependence on conventional electricity,' he stated. Families generating surplus power can also earn income by supplying it back to the grid, subject to applicable arrangements.

Gujarat's Solar Track Record

The state has recorded more than 14 lakh rooftop solar installations to date, according to the state government. Of these, over 8.5 lakh have been completed under the PM Surya Ghar scheme — placing Gujarat first nationally under the programme. This latest subsidy expansion builds on that momentum, targeting an additional three lakh households who may have found even the residual cost prohibitive.

Notably, the state's push comes at a time when India is aggressively scaling rooftop solar capacity to meet its 500 GW renewable energy target by 2030. Gujarat, already a renewable-energy bellwether, is now extending affordability to its most economically vulnerable households — a structural shift from earlier phases that disproportionately benefited middle-income and upper-income groups.

Impact on Households and What Comes Next

Beyond reduced electricity bills, rooftop solar gives participating families a potential income stream through net metering, where surplus units fed into the grid are credited. The programme is particularly consequential for SC/ST households in rural and semi-urban Gujarat, where grid reliability has historically been uneven and electricity costs represent a higher share of household expenditure.

With the Cabinet approval now in place, implementation timelines and vendor empanelment details are awaited from the state energy department. Analysts expect the ₹1,000 crore outlay to be disbursed over the next fiscal cycle as installations are verified and subsidies are processed.