Solar Panel Subsidy by Country: What You Can Get in the US, India, Australia and Germany (2026)
Compare solar grants, upfront discounts, tax relief and feed-in tariffs across four countries, with worked examples to calculate your net cost.
Quick answer (as of October 2026): The size of a solar panel subsidy depends almost entirely on where you live. India offers up to ₹78,000 in central assistance for a home system of 3 kW or more. Australia gives an upfront discount through STCs, which is roughly A$1,665 to A$1,800 for a 6.6 kW system in the example below. Germany has no purchase grant for most homes, but charges 0% VAT on solar and pays a feed-in tariff. The US federal credit for home solar ended in 2025.
Scope note: This post covers national programs in four countries. Many states, provinces and utilities add their own offers, and rules change often. Check the official source before you sign anything.
What Counts as a Solar Panel Subsidy?
A solar panel subsidy is any government support that lowers what you pay for a solar system or rewards the power it produces. It usually takes one of four forms:
- Capital grant or upfront discount: support toward the purchase cost (India’s assistance is paid after commissioning; Australia’s STCs are usually discounted on the invoice).
- Tax credit or tax relief: a lower tax bill (the former US federal credit, Germany's 0% VAT).
- Feed-in tariff: a set payment for each kWh you send to the grid (Germany).
- Cheap loans: lower interest rates for solar purchases (India and Germany both have versions).
Each form changes your math differently. A capital grant reduces your eventual net cost, but may be paid after installation. A feed-in tariff adds income over many years. Takeaway: compare the form of the incentive, not just the headline number.
Solar Subsidy by Country at a Glance
| Country | Main national support (October 2026) | Form | Official source |
|---|---|---|---|
| India | Up to ₹78,000 for an eligible residential rooftop system of 3 kW or more | Subsidy paid after commissioning | PM Surya Ghar national portal |
| Australia | STCs, based on system size, postcode and installation year; 5-year deeming period in 2026 | Usually an invoice discount | Clean Energy Regulator |
| Germany | 0% VAT for eligible systems; up to 10 kWp: 7.70 ct/kWh partial feed-in or 12.22 ct/kWh full feed-in for commissioning August–December 2026 | Tax relief and ongoing export payments | Bundesnetzagentur; tax authority; KfW |
| United States | Federal residential solar credit ended after 2025; check state, utility and local offers | Varies by program | IRS; state energy office; utility |
For Solarity's own overview, see the solar subsidies and incentives hub. Official program links appear in each country section below.
India: Solar Subsidy Under PM Surya Ghar
India's central subsidy for home solar is ₹30,000 per kW for the first 2 kW and ₹18,000 for the third kilowatt. That is ₹60,000 for 2 kW and a cap of ₹78,000 for systems of 3 kW or more. The scheme describes this as 60% of the cost for the first 2 kW and 40% of the extra cost between 2 and 3 kW, at benchmark prices.
- Applies to: residential rooftop systems. You apply on the national portal, choose a vendor registered with your electricity distribution company (DISCOM), and request a net meter.
- When you get paid: after the DISCOM inspects the system and the portal issues a commissioning certificate. Confirm the current payment timeline on the portal; the grant is not necessarily available when you pay the installer.
- Loans: the 2024 cabinet note mentions collateral-free loans at about 7% for residential systems up to 3 kW. Check current terms with your bank.
- State top-ups: some states add their own subsidy. Check current eligibility and funding with your state energy agency.
For India-specific cost ranges, see solar cost in India.
Sources: India subsidy amounts and scheme overview (Government of India).
Australia: Solar Subsidy Through STCs
Australia's main subsidy is the small-scale technology certificate (STC), and your installer usually applies it as an upfront discount on your invoice. You sign over your right to the certificates, and the installer sells them later.
How the number is set: the number of STCs depends on system size (kW), your postcode's zone rating, and the deeming period, which is the number of years of generation counted. The deeming period is 5 years for 2026 and falls by one each 1 January, with the scheme set to end after 2030. The worked example below uses an illustrative A$37–40 per certificate; your installer’s quote determines the actual discount, including any fees.
Home batteries: from 1 May 2026, the federal battery rebate uses tiers. Batteries up to 14 kWh get 100% of the STC factor, the next 14 kWh (up to 28 kWh) get 60%, and the band from 28 to 50 kWh gets 15%. Use the Clean Energy Regulator’s battery STC calculator for your entitlement and ask your installer for the actual dollar discount.
Takeaway: the STC discount shrinks every year, so the same system earns less in 2027 than it does today. See solar cost in Australia for pricing context.
Sources: Australian STC entitlement and deeming periods (Clean Energy Regulator) · Solar battery eligibility and tiers (Clean Energy Regulator).
Germany: Solar Incentives (0% VAT and Feed-in Tariff)
Germany’s main national support for home solar comes through tax relief, export payments and financing. Check regional programs separately for any purchase grant.
- 0% VAT: since 1 January 2023, qualifying solar equipment and installation can benefit from 0% VAT. The rules cover installations on or near homes and certain other buildings; systems up to 30 kWp benefit from a simplified eligibility assumption. The standard VAT rate is 19%.
- Income tax: qualifying small systems, including systems up to 30 kWp on a single-family home, can be exempt. An aggregate 100 kWp limit per taxpayer also applies.
- Feed-in tariff (EEG): the Bundesnetzagentur lists 7.70 ct/kWh for partial feed-in and 12.22 ct/kWh for full feed-in for eligible rooftop systems up to 10 kWp commissioned from 1 August through 31 December 2026. Check the schedule for your commissioning date; do not use an older rate for a new installation.
- Future rules: proposals for later installations should not be treated as confirmed entitlements. Check the regulator’s current schedule before signing a contract.
- Loans: the KfW 270 program offers financing through a financing partner. Apply before starting the project or entering a binding purchase commitment, subject to the program’s rules.
For local pricing, see solar cost in Germany.
Sources: German solar tax rules (Ministry of Finance, Baden-Württemberg) · Current EEG feed-in tariff rates (Bundesnetzagentur) · KfW 270 solar financing.
United States: Solar Incentives After the Federal Credit Ended
The federal residential clean energy credit, which covered 30% of home solar costs, is no longer available for expenditures after December 31, 2025. If your system was completed by the end of 2025, you may still claim it on your tax return (IRS Form 5695). If not, do not subtract 30% from your estimate.
- State and local programs: rebates, tax exemptions or incentive programs, such as the California SGIP for storage and the New York Megawatt Block.
- Utility programs: net metering or export credits. The rules differ by utility.
- Federal business credits: these follow separate rules for companies and are not covered here.
Use the Solarity page on the ended federal credit and read your utility's rules. For costs, see solar cost in the USA. Takeaway: in the US, your location now matters more than any federal rule.
Sources: Residential Clean Energy Credit and Form 5695 (IRS).
How Do You Work Out Your Net Cost After a Solar Subsidy?
Your net cost is the installer’s quote minus eligible capital subsidies or discounts, plus any extras. Keep cash required at installation separate from the eventual net cost: India’s central assistance is paid after commissioning. Ongoing feed-in payments are annual income, not an upfront discount.
Worked example. The quotes below are example inputs, not market prices. Replace them with your own quotes.
- Write down your installer quote in your currency.
- Subtract each eligible capital subsidy or discount once, noting when it is paid.
- Add back anything you must pay that the subsidy does not cover.
- Treat tariff income as a yearly figure, not an upfront discount.
| Example | India | Australia | Germany | United States |
|---|---|---|---|---|
| Inputs | 3 kW system; ₹2,00,000 quote | 6.6 kW; Zone 3; installed in 2026 | €10,000 net quote | US$20,000 quote |
| Subsidy calculation | ₹78,000 central assistance | 6.6 × 1.382 × 5 = 45.606 → 45 whole STCs; assumed A$37–40 each | Eligible 0% VAT; no 19% added | US$0 federal residential credit in 2026 |
| Result | ₹1,22,000 after subsidy, before state top-ups | A$1,665–1,800 discount, before any agent fees | €10,000 rather than €11,900 at 19% VAT | US$20,000 minus any eligible state or utility offer |
| Ongoing benefit | Lower electricity bill | Lower bill and retailer export credits | Illustrative exports: 3,000 kWh × €0.0770 = €231/year | Depends on utility export rules |
The Australian example uses a Zone 3 rating of 1.382 and rounds down to whole certificates. Confirm your postcode and entitlement with the Clean Energy Regulator. Actual STC value and fees vary. The German export calculation is an illustration at the current partial-feed-in rate, not a guaranteed annual payment.
Use your own numbers: the Solar Savings Calculator takes your country, location and monthly electricity bill, and shows ranges for cost, savings and payback. Calculate My Solar Savings, then confirm your subsidy with the official source above.
What Changes How Much Solar Subsidy You Get?
- System size: India's subsidy tops out at 3 kW. Australia's STCs rise with kW.
- Install date: Australia's deeming period and Germany's tariff change on set dates.
- Location: state, postcode and utility rules differ in all four countries.
- Type of building: most programs cover homes, with separate rules for businesses.
- Order of steps: India and Germany require applying before purchase or installation for some benefits.
Common Mistakes When Claiming a Solar Subsidy
- Counting an incentive that ended. Do this check first in the US.
- Using a blog's number as a quote. Only your installer or the official calculator can confirm your amount.
- Missing the application step. India needs a portal registration and registered vendor. Germany's KfW needs an application before the contract.
- Confusing a tariff with a grant. A feed-in tariff pays you over years and does not lower your upfront bill.
- Assuming it will stay the same. Australia's discount drops each year, and Germany's tariff is under reform.
Solar may also not be a fit if your roof is heavily shaded or you plan to move soon. Read Understanding Solar Incentives and Tax Credits for background, and Net Metering Explained to see how exported power is credited. When you are ready to compare installer quotes, Get Free Installer Quotes.
Final Thoughts
A solar panel subsidy is only one piece of the price, and it changes by country, year and even postcode. India gives a capped grant, Australia gives a shrinking discount, Germany offers tax relief and a tariff, and the US now depends on state and utility programs. Do the net-cost math with your own quote, and verify the rules on the official site before you commit. To see your ranges, use the Solar Savings Calculator.
Related reading: Understanding Solar Incentives and Tax Credits · Net Metering Explained · How to Choose the Right Solar Installer
Estimates only. Actual cost depends on roof condition, shading, installer quotes, and local policies. Not financial advice. Incentives can change; verify with official sources.
Frequently asked questions
What is the solar panel subsidy in India in 2026?
India's central subsidy for home rooftop solar is ₹30,000 per kW for the first 2 kW and ₹18,000 for the third kW. That means ₹60,000 for 2 kW and a cap of ₹78,000 for 3 kW and above, at benchmark prices. You apply on the national portal and use a vendor registered with your electricity distribution company. Payment follows commissioning and inspection. Some states add their own subsidy, and rules can change, so check the portal for current amounts before you buy. Your own system cost still depends on your quote.
Is there a solar subsidy in the US in 2026?
There is no federal home solar credit for expenditures made after December 31, 2025. The 30% residential clean energy credit ended, so you should not subtract it from your 2026 estimate. Some states, cities and utilities still run their own incentives, such as rebates, tax exemptions or export credits. These vary a lot, so check your state energy office and your utility. If your system was finished in 2025, you may still claim the credit on your tax return using IRS Form 5695, and a tax adviser can confirm your case.
How do STCs work in Australia?
STCs are certificates created by small solar systems. Your installer usually applies their value as a discount on your invoice and sells the certificates later. The number depends on your system size in kW, your postcode's zone rating, and the deeming period. The deeming period is 5 years for 2026 and drops each year until the scheme ends after 2030. Because the STC price moves, the illustrative 6.6 kW Zone 3 example gives A$1,665 to A$1,800 before fees at an assumed A$37–40 per certificate, and your quote will show the exact amount.
Does Germany give a subsidy for solar panels?
Germany supports eligible home solar through 0% VAT, feed-in payments and KfW financing. For eligible rooftop systems up to 10 kWp commissioned from August through December 2026, the regulator lists 7.70 ct/kWh for partial feed-in and 12.22 ct/kWh for full feed-in. Check the official schedule for your installation date and any local grants separately.
What is the difference between a subsidy, a tax credit and a feed-in tariff?
A capital subsidy reduces your net purchase cost. India’s central assistance is paid after commissioning; Australia’s STC discount is usually applied to the invoice. A tax credit or tax relief lowers your tax bill or the VAT charged, as with Germany's 0% VAT. A feed-in tariff pays you for each kWh you send to the grid, so it adds income over time rather than cutting the price. When you compare offers, convert each one to a yearly or total figure with the same assumptions, and note when each one starts and ends.
Can I get a solar subsidy and a loan together?
Often yes, but the rules differ by country and program. In India, the national scheme mentions low-interest loans for residential systems up to 3 kW, separate from the subsidy. In Germany, KfW loans can finance a system that also benefits from 0% VAT. In Australia, the STC discount is applied to the invoice, so a loan finances the remaining amount. Always confirm with your lender and the program rules, and check whether you must apply before signing a contract.
Does the solar subsidy change every year?
Yes, in many places. Australia's STC deeming period drops by one year each January until 2030, so the discount shrinks. Germany's feed-in rates fall on a schedule and are under reform. India's scheme amounts are set at benchmark prices and can be revised. US state programs open and close with funding. Rules also differ between cities and utilities, so two neighbors can qualify for different offers. Treat any number in a blog as a snapshot, note its date, and check the official source on the day you sign a contract.
Is a solar battery eligible for a subsidy?
In Australia, home batteries qualify for a federal rebate that uses the same STC logic. From 1 May 2026, batteries up to 14 kWh earn 100% of the factor, the next 14 kWh earn 60%, and the 28 to 50 kWh band earns 15%. In the US, programs such as California's SGIP support storage, but they vary. India and Germany have different rules, so check local programs. Compare the cost of a battery against its savings before you decide, since a rebate does not guarantee a payback. Ask your installer to show the price both before and after the rebate.
How do I find out which solar subsidy applies to me?
Start with your country's official source: the national rooftop solar portal in India, the Clean Energy Regulator in Australia, the Bundesnetzagentur and KfW in Germany, and your state energy office and utility in the US. Then ask installers to show every incentive on the quote, as a separate line from the base price. You can also try the Solarity Solar Savings Calculator, which lists incentives to check next to cost and payback ranges. Keep a record of the date you checked each source, because rules can change before your install date.