Sunny Side Up How Subsidies are Powering Solar Revolution in Tier-2 Indian Cities

When you think of rooftop solar in India, your mind probably goes straight to the bustling metro cities. But the real revolution is happening in the heart of the country's tier-2 and tier-3 towns, where families are making bold strides towards solar energy.

- By Akanksha Ghilahare

With tighter budgets, limited awareness and a maze of red tapism, subsidies are more than just an incentive; they're the lifelines that make rooftop solar not just a dream, but a tangible reality for the middle-class households.

When people talk about rooftop solar in India, the focus is often on big metros—Delhi, Mumbai, Bengaluru but the real story is unfolding in tier-2 and tier-3 cities. Households have to think carefully about every rupee spent in these hubs. Awareness is limited, financing is harder, and even finding someone who can repair a faulty inverter isn't guaranteed. In these cities, subsidies aren't just an incentive—they are the difference between adopting solar or continuing to stick with monthly bills.

Why Subsidies Matter?

For most families, the PM Surya Ghar Muft Bijli Yojana became an entry point. A subsidy of up to ₹78,000 is no small amount; for many middle-class households, it is equal to several months of income. Add to that the state-level incentives—like those in Chhattisgarh, Gujarat, and Rajasthan—and the numbers begin to make sense for families, who, otherwise would have never thought of installing solar.

Suppose a household in Raipur spends ₹2,500–₹3,000 a month on electricity. In this case, without subsidy support, a 3–5 kW rooftop system would feel like a distant dream. With subsidies, the payback period comes down to three or four years. After that, the savings are real and for families with tight monthly budgets, this is a gamechanger.

Life outside the Metros