Mahavitaran Slashes Rooftop Solar Cost to ₹45,450 per kW, Saving Consumers ₹15,000

Maharashtra has taken a decisive step to make residential solar more affordable, with Mahavitaran (MSEDCL) finalising a new benchmark rate of ₹45,450 per kW for rooftop solar installations under the Swayampurna Maharashtra Residential Rooftop Solar (SMART) scheme.

The revised pricing, approved through a competitive tender process, is nearly ₹15,000 lower than the prevailing market rate of ₹60,000 per kW and ₹4,550 below the state’s earlier estimated project cost of ₹50,000 per kW. The approval was granted during a board meeting in Mumbai chaired by CMD Lokesh Chandra, in the presence of Additional Chief Secretary (Energy) Abha Shukla.

A Direct Financial Relief for Households

The cost correction is expected to benefit nearly 5 lakh Below Poverty Line (BPL) and economically weaker section (EWS) households. By reducing upfront capital costs, the SMART scheme aims to ease entry barriers for small domestic consumers who have traditionally found rooftop solar financially out of reach.

With installation costs now fixed at ₹45,450 per kW, consumers will see a significantly lower out-of-pocket expense after applying eligible subsidies. The move also narrows the gap between subsidised rooftop systems and open-market offerings, where prices have remained around ₹60,000 per kW.

Central and State Subsidies Improve Economics

The pricing revision complements the central government’s Pradhan Mantri Surya Ghar Muft Bijli Yojana (PMSMBY), launched in February 2024 to accelerate residential solar adoption nationwide. The scheme provides direct subsidies of ₹30,000 for 1 kW, ₹60,000 for 2 kW, and ₹78,000 for 3 kW systems.

A standard 1 kW rooftop solar system typically generates around 120 units per month. For many small households, this output can match or exceed monthly electricity consumption, reducing bills to zero. Surplus generation can be exported to the grid, allowing consumers to earn additional income through net metering arrangements with Mahavitaran.

To further strengthen affordability for vulnerable segments, the Maharashtra government is extending additional state-level assistance under the SMART scheme specifically for BPL and EWS consumers.

Scaling Rooftop Solar Across the State

The cost rationalisation comes at a time when Maharashtra’s rooftop solar segment is expanding steadily. As of January 2025, rooftop solar capacity in the state has surpassed 5 GW, forming a substantial share of the overall installed solar base of 19.1 GW.

By lowering installation costs and ensuring vendor transparency through empanelment lists published on its official website and SMART portal, Mahavitaran is seeking to accelerate adoption across residential categories. Maharashtra launched SMART rooftop solar subsidy scheme last year, which entails subsidies of up to 95% for low-income households that consume less than 100 units of electricity per month. 

The revised pricing framework is expected to deepen rooftop solar penetration, particularly among small and economically weaker consumers.