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UP Solar Energy Subsidy 2022: Rooftop, KUSUM, Land Lease & Battery Storage Benefits

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.

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