Introduction: UP Solar Energy Subsidy 2022
The demand for solar power in Uttar Pradesh has surged rapidly due to rising electricity costs, clean energy transition, and government-driven incentives. To accelerate this growth, the state introduced the Uttar Pradesh Solar Energy Subsidy 2022, offering powerful subsidies and financial benefits for rooftop solar, utility-scale projects, farmers’ solar pumps, battery storage systems, and land-based solar parks.
However, despite attractive subsidies, 90% of applicants struggle with documentation, technical compliance, land permissions, grid-approval, or financial structuring—making professional consultancy essential.
Finraja Consultancy Private Limited helps investors, industries, farmers, and EPC developers unlock the maximum subsidy while ensuring smooth end-to-end approvals under UPNEDA and other departments.
Overview of UP Solar Energy Subsidy 2022
The Subsidy targets 22,000 MW of solar capacity by 2026–27, covering:
- Rooftop projects
- Utility-scale solar parks
- PM KUSUM C1/C2 programs
- Solar parks
- Battery storage
- Land lease incentives
- Distributed solar
- Manufacturing & off-grid solar applications
The Subsidy introduces multiple capital subsidies, operational incentives, land benefits, and tax exemptions—but to claim them successfully, precise structuring and documentation are required.
UP Solar Energy Subsidy 2022
The UP Solar Energy Subsidy 2022 provides wide-ranging financial benefits to support solar power investors and consumers. These subsidies span rooftop solar, agricultural pumps, irrigation feeders, large-scale solar parks, floating solar, land procurement, and transmission infrastructure.
The Subsidy is built to:
- Reduce upfront project cost
- Accelerate approvals
- Provide land access
- Support grid integration
- Encourage battery storage
- Promote MSMEs & startups
Uttar Pradesh Solar Subsidy – Complete Benefits
The Uttar Pradesh solar subsidy covers multiple project categories, each with dedicated incentives. Unlike central schemes, these state subsidies are exclusive and available only through proper registration in UPNEDA.
Key incentives include:
- State rooftop subsidy
- Battery storage subsidy
- Land lease benefit
- Transmission line subsidy
- Stamp duty exemption
- Electricity duty exemption
- VGF subsidy (KUSUM C2)
- Large-scale project facilitation
This ensures they get the highest payable subsidy combination.
UP Rooftop Solar Subsidy
Under the Saurya Uttar Pradesh Yojana, the state offers:
₹15,000 per kW (Max ₹30,000 per consumer)
This is in addition to MNRE Central Financial Assistance.
Eligibility includes:
- Residential homes
- Societies (common area systems)
- Solar city program beneficiaries
Benefits include:
- Reduced upfront cost
- Net metering approvals
- Height exemption from building byelaws
UPNEDA Solar Subsidy
As the state’s nodal agency, UPNEDA manages multiple core functions such as registrations, bidding, project approvals, land facilitation, subsidy disbursement, and metering coordination.
Beyond these administrative roles, the agency also oversees subsidy-linked categories including rooftop solar plants, off-grid systems, feeder solarization projects, battery-integrated units, standalone solar power plants, and utility-scale solar parks. Through this structure, developers and consumers receive streamlined support for implementing solar projects across Uttar Pradesh.
Saurya Uttar Pradesh Yojana Subsidy
This state scheme is exclusively for residential rooftop users.
Benefits include:
- ₹15,000/kW subsidy
- Maximum limit ₹30,000
- Integration with MNRE National Portal
- Full support for net metering approvals
- Fast-track DISCOM validation
We help with:
- Vendor verification
- Ensuring eligibility compliance
- UPNEDA portal coordination
- Document preparation
- Avoiding errors in commissioning reports
UP PM KUSUM C1 & C2 Subsidy
The Subsidy includes two major farmer-focused subsidy components:
PM KUSUM C1 – Solarization of On-Grid Pumps
State subsidy:
- 70% for ST, Vantangia & Musahar farmers
- 60% for other farmers
PM KUSUM C2 – Solarization of Agricultural Feeders
State VGF:
- Up to ₹50 lakh per MW
(Over and above central subsidy)
UP Solar Land Lease Subsidy
Land access is the biggest challenge for large investors.
The Subsidy offers:
Government Land Lease Rates
- ₹1 per acre per year (Public Sector Solar Parks – 30 years)
- ₹15,000 per acre per year (Private Developers – 30 years)
Additional benefits:
- Exemption from land conversion (agriculture → non-agriculture)
- Permission to purchase land above ceiling limits
- Help from District Collector for private land leasing
UP Solar Battery Storage Subsidy
UP offers one of India’s highest subsidies for storage projects:
₹2.50 crore per MW (Utility-scale, 4-hour battery systems of 5MW+)
This applies to:
- Hybrid solar + battery projects
- Standalone battery systems charged by solar
- UPPCL/Discom sale projects
This subsidy requires:
- Technical DPR preparation
- Storage calculations (kWh/MWh)
- Grid impact study
- UPPCL compliance
- Detailed costing & engineering
Funding Pattern / Financial Assessment / CFA
A. Residential Rooftop (Saurya Uttar Pradesh Yojana)
Component | Minimum | Maximum |
State Subsidy | ₹15,000/kW | ₹30,000 |
Central Subsidy | ₹18,000/kW | ₹78,000 (depending on system size) |
Beneficiary Contribution | 40–60% | 50–70% |
B. PM KUSUM C1 (On-grid Pump Solarization)
Component | ST/Vantangia/Mushar | Other Farmers |
State Subsidy | 70% | 60% |
Central Subsidy | As per MNRE norms | As per MNRE norms |
Farmer Contribution | 10–20% | 20–40% |
C. PM KUSUM C2 (Feeder Solarization)
Component | Minimum | Maximum |
State VGF | ₹30 lakh/MW | ₹50 lakh/MW |
Developer Equity | 20% | 40% |
Bank Loan | 40% | 60% |
D. Battery Storage Projects (≥5 MW)
Component | Minimum | Maximum |
State Subsidy | ₹2.5 crore/MW | No upper cap (as per project MW) |
Developer Investment | 60% | 80% |
Debt Funding | 20% | 40% |
E. Land Lease & Utility-Scale Solar Parks
Component | Minimum | Maximum |
Govt Land Lease | ₹1/acre/year | Fixed for 30 years |
Private Land Lease | ₹15,000/acre/year | Fixed for 30 years |
Transmission Line Subsidy | 10 km (5–10 MW projects) | 20 km (>50 MW projects) |
Conclusion
The UP Solar Energy Subsidy 2022 provides one of India’s most powerful combinations of rooftop, utility-scale, land lease, battery storage, and agricultural subsidies. However, accessing these benefits requires strong documentation, DPR preparation, financial structuring, UPNEDA coordination, and technical compliance.
Call us now: +91 9373114747 or visit finraja.com/contact for quick assistance.