Solar energy is radiant light and heat from the Sun that is harnessed using a range of ever-evolving technologies such as solar heating, photovoltaics, solar thermal energy, solar architecture, molten salt power plants and artificial photosynthesis. It is an essential source of renewable energy, and its technologies are broadly characterized as either passive solar or active solar depending on how they capture and distribute solar energy or convert it into solar power. Active solar techniques include the use of photovoltaic systems, concentrated solar power, and solar water heating to harness the energy. Passive solar techniques include orienting a building to the Sun, selecting materials with favourable thermal mass or light-dispersing properties, and designing spaces that naturally circulate air. The large magnitude of solar energy available makes it a highly appealing source of electricity.

According to the Ministry of New and Renewable Energy, the Central Government pays 30% of the benchmarked installation cost for rooftop PV systems. This subsidy is applicable in states that are in the general category. However, a subsidy of up to 70% of the benchmarked installation cost is offered in some states that lie in the special category -- North MNRE PV Rooftop Cell. These include states such as Uttarakhand, Sikkim, Himachal Pradesh, Jammu & Kashmir and Lakshadweep. In addition to this, State Nodal Agencies also offers subsidies in various state. This subsidy scheme is applicable for institutional, residential and social sectors. However, it is not applicable to the commercial sector, industrial sector and public sector undertakings. PSUs are eligible to avail incentives on the basis of energy generation

• Subsidy Amount – Up to 3kW – 40% Subsidy
• 4kW to 10kW – 20% Subsidy
• More than 10kW – No any subsidy