Andhra Pradesh is quickly becoming one of India’s leading states in adopting solar energy. With the government’s strong push toward renewable power and attractive subsidy programs, homeowners and businesses now have a golden opportunity to install rooftop solar panels at an affordable cost.
In 2025, both the Central Government and the Andhra Pradesh State Government are offering special financial support under schemes like the PM Surya Ghar: Muft Bijli Yojana and state-level grants. These programs aim to make solar energy accessible to every household, reduce electricity bills, and promote a cleaner environment.
In this article, Solar6 explains the latest solar subsidy offers, eligibility, application process, costs, and benefits available to Andhra Pradesh residents in 2025.
Why Andhra Pradesh Is Moving Toward Solar Power
Andhra Pradesh receives sunlight for almost 300 sunny days per year, making it one of the best states in India for solar installations. The state’s energy demand is rapidly increasing, especially in residential and industrial sectors. Rooftop solar helps reduce pressure on the grid, cuts transmission losses, and supports a sustainable future.
The government’s vision is clear: every home should generate its own electricity. This not only lowers household expenses but also empowers citizens to contribute to the fight against climate change.
Central Government Scheme: PM Surya Ghar – Muft Bijli Yojana
Overview
The PM Surya Ghar: Muft Bijli Yojana is the flagship national solar subsidy scheme launched by the Government of India in 2024 and expanded across states in 2025. The main goal is to provide up to 300 units of free electricity every month for households that install rooftop solar panels.
Key Benefits
- Subsidy up to ₹78,000 for solar systems up to 3 kW capacity.
- The Central and State Governments combined assistance for different household categories.
- Free installation and maintenance for 5 years for economically weaker households.
- Direct Benefit Transfer (DBT) of subsidy into the beneficiary’s bank account.
- Net Metering facility, allowing households to sell excess power back to the grid.
Eligibility
- The applicant must be a resident of India and own the house/rooftop.
- The property must have a valid electricity connection in the applicant’s name.
- The consumer must not have availed any other central subsidy for solar previously.
Subsidy Structure
| System Capacity | Approx. System Cost | Central Subsidy | Total Savings |
| 1 kW | ₹60,000–₹70,000 | ₹30,000 | ~45% subsidy |
| 2 kW | ₹1.10 – ₹1.20 lakh | ₹60,000 | ~50% subsidy |
| 3 kW | ₹1.40 – ₹1.60 lakh | ₹78,000 | ~50–55% subsidy |
These figures may vary slightly depending on approved vendor rates and DISCOM charges.
Andhra Pradesh State Solar Subsidy & Grants
The Andhra Pradesh government provides additional state-level benefits alongside the Central scheme to encourage widespread adoption.
State Subsidy Highlights (2025)
- Additional ₹20,000 subsidy for Backward Class (BC) households installing 2 kW rooftop systems.
- Free solar system installation (up to 2 kW) for SC/ST families under the joint Central + State initiative.
- Waiver of application and net-metering fees for systems up to 10 kW capacity.
- Free maintenance for 5 years for eligible families.
- Interest-free loans in selected districts through cooperative banks and renewable energy programs.
- Model Solar Villages are being developed in at least five per district to promote community adoption.
Total Subsidy Example for a 2 kW System
Let’s take a simple case:
| Particulars | Amount (Approx.) |
| System Cost | ₹1,20,000 |
| Central Govt Subsidy | ₹60,000 |
| Andhra Pradesh State Subsidy | ₹20,000 |
| Total Subsidy | ₹80,000 |
| Final Cost to Consumer | ₹40,000 only |
Documents Required
To apply for a rooftop solar subsidy in Andhra Pradesh, you will need:
- Aadhar Card and PAN Card
- Latest Electricity Bill
- Property Ownership Proof
- Bank Account Details (for subsidy transfer)
- Passport Size Photograph
- Category Certificate (for SC/ST/BC applicants)
Application Process (Step-by-Step)
- Visit the National Portal for Rooftop Solar (https://pmsuryaghar.gov.in).
- Register using your electricity connection number and mobile number.
- Select Andhra Pradesh as your state and choose your DISCOM (APSPDCL, APEPDCL, etc.).
- Upload documents and system details.
- Select an empanelled vendor authorized to install solar systems under the scheme.
- After inspection, the system is installed, and net metering is set up.
- Once installation is verified, the subsidy amount is credited directly to your bank account.
Benefits of Installing Solar Panels in Andhra Pradesh
- Huge Savings on Electricity Bills – Generate your own power and reduce grid consumption by up to 90%.
- Free Electricity for 25 Years – Solar panels have a long lifespan with minimal maintenance.
- Government Subsidy Support – Up to 80–100% subsidy for eligible households.
- Environment Friendly – Every 1 kW solar system reduces 1.5 tons of carbon emissions per year.
- Increased Property Value – Homes with solar installations have higher resale value.
- Energy Independence – No more power cuts; self-reliant clean energy generation.
- Income from Net Metering – Earn credit for the excess electricity you supply back to the grid.
Solar Cost and Payback Period in Andhra Pradesh
The cost of a solar system depends on capacity and equipment quality. However, with subsidies, the effective payback period is short.
| System Size | Net Cost After Subsidy | Average Monthly Savings | Payback Period |
| 1 kW | ₹30,000–₹35,000 | ₹700–₹900 | 3–4 years |
| 2 kW | ₹40,000–₹45,000 | ₹1,200–₹1,800 | 3 years |
| 3 kW | ₹60,000–₹70,000 | ₹2,000–₹2,500 | 3–3.5 years |
After the payback period, the electricity you generate is essentially free for the remaining 20+ years.
Focus on Rural and Low-Income Households
The 2025 solar subsidy policy in Andhra Pradesh especially benefits rural households, small farmers, and economically weaker sections.
Under the PM Surya Ghar Yojana, thousands of homes in villages are being equipped with 1 kW and 2 kW rooftop systems completely free of cost. The program ensures equal access to energy and aims to light up every rural home with solar power.
Solar Companies and Installation Support in Andhra Pradesh
Approved and empanelled vendors handle the entire process from supply, installation, and grid connection to maintenance. Residents can choose trusted companies that are MNRE-certified and recognized by APSPDCL or APEPDCL.
Before selecting a company, always verify:
- Registration number on the PM Surya Ghar portal
- Warranty period (minimum 5 years on the complete system)
- After-sales service availability
Reliable vendors also assist in filling applications and ensuring faster subsidy disbursement.
Challenges and Tips for Consumers
While government subsidies make solar affordable, a few practical issues need attention:
Installation Delays – High demand can cause slight delays; apply early.
Roof Suitability – Ensure your rooftop has enough shade-free area (at least 100 sq. ft per kW).
Vendor Verification – Use only government-approved vendors.
Metering Process – Wait for DISCOM approval for grid connectivity.
Maintenance – Clean panels regularly for best performance.
Future Outlook for Solar Energy in Andhra Pradesh
By 2030, Andhra Pradesh aims to achieve over 10 GW of rooftop solar capacity.
The government plans to:
- Expand solar subsidy programs for both residential and commercial sectors.
- Introduce smart energy monitoring systems in urban areas.
- Encourage battery storage systems for better power management.
- Promote community solar parks in rural zones.
The vision is to make Andhra Pradesh a solar-powered state, reducing carbon emissions and boosting local employment through green energy jobs.
Conclusion
The year 2025 marks a turning point for solar adoption in Andhra Pradesh. With attractive central and state subsidies, households can now install rooftop solar systems at a fraction of the actual cost.
Whether you are from a rural village or an urban city, solar energy is now affordable, reliable, and profitable. By taking advantage of schemes like the PM Surya Ghar: Muft Bijli Yojana and the Andhra Pradesh State Grants, and partnering with trusted solar experts like Solar6, you can enjoy free electricity for decades, contribute to a greener planet, and secure your energy future with confidence.