The Maharashtra government has approved the Self-Reliant Maharashtra Residential Rooftop (SMART) solar program under which households below poverty line (BPL) will need to pay only ₹2,500 (~$28.20) for a 1 kW rooftop solar system.

The program aims to promote self-generation of electricity among economically weaker and lower-middle-income households.

The program is expected to continue until March 2027.

Subsidy

The subsidy structure varies according to the consumer category. BPL consumers will receive a 35% subsidy on the installation cost. Scheduled caste (SC) and scheduled tribe (ST) consumers in the economically weaker section (EWS) category will receive a 30% subsidy, and general category households consuming less than 100 units a month will receive a 20% subsidy.

Based on an assumed installation cost of ₹50,000 (~$564.03)/kW, BPL households will receive a 35% state subsidy of ₹17,500 (~$197.41) and a 60% central subsidy of ₹30,000 (~$338.42), leaving the household to pay only ₹2,500 (~$28.20).

Economically weaker households consuming less than 100 units per month will receive a 20%–30% state subsidy, depending on the category, in addition to the 60% central subsidy.

Sub-category allocations include a 20% state subsidy of ₹10,000 (~$112.81) for general households and a 30% state subsidy of ₹15,000 (~$169.21) each for SC and ST households. Consumer contributions under this category range from ₹5,000 (~$56.40) to ₹10,000 (~$112.81), depending on state subsidy eligibility.

The central government will provide a subsidy of ₹30,000 (~$338.42) for each category of consumers.

The total financial requirement for the SMART program is ₹6.55 billion (~$73.91 million), with ₹3.30 billion (~$37.23 million) allocated for the financial year (FY) 2025-26 and ₹3.25 billion (~$36.66 million) for FY 2026-27. The funds will be managed through the state electricity department’s account, and the Maharashtra State Electricity Company (MSEB) will oversee implementation.

Central and State Support

Under the PM Surya Ghar: Muft Bijli Yojana, 300 units of free electricity per month will be provided to 10 million households through rooftop solar installations. For Maharashtra, the target is 875,000 households.

Under the central subsidy framework, solar projects with a capacity of up to 2 kW receive a 60% subsidy on the benchmark project cost, while projects with a capacity between 2 kW and 3 kW receive a 40% subsidy.

The program introduces additional state-level support for households classified as economically weaker. The state government will provide direct subsidies to 154,622 BPL households and 345,378 households consuming less than 100 units of electricity per month, totaling 500,000 households.

Implementation and Technical Standards

The MSEB will act as the implementing agency for the program. Each selected household will receive a 1 kW rooftop solar system, following a technical feasibility verification of the installation site.

Solar modules will include radio-frequency identification tags for tracking. Installers must provide five years of operation and maintenance.

The program prioritizes households with valid electricity connections that have not previously received rooftop solar subsidies and are registered on the national portal. Households consuming more than 100 units per month between October 2024 and September 2025 are ineligible.

Priority will be given to BPL households, while other eligible households will be selected on a first-come, first-served basis. In cases where the number of BPL households is below the targeted 154,622 by December 2025, the quota will be adjusted to include households consuming 0–100 units per month.

Regional Focus

The SMART program is designed to extend benefits to remote regions such as Melghat, Nandurbar, and Gadchiroli, ensuring equitable access to renewable energy infrastructure.

All aspects of installation, from tendering to post-installation inspections, financial assistance disbursement, and fund utilization, will be monitored and audited by MSEB. Quarterly progress and financial reports will be submitted to the state government, ensuring transparency and accountability.

India added 2.8 GW of rooftop solar capacity in the first half of 2025, according to Mercom India’s Q2 2025 India Rooftop Solar Market Report. Gujarat, Maharashtra, Uttar Pradesh, Kerala, and Rajasthan led the rooftop solar capacity additions during the quarter.

Recently, The Maharashtra Electricity Regulatory Commission reiterated the regulatory requirement that rooftop solar generation under simultaneous open access must be credited under net metering as per the amended 2023 regulations.