SOLARIXITY KNOWLEDGE CENTRE

RWA, housing society & builder solar subsidy

Common-area rooftop solar, the ₹18,000/kW CFA framework and the conditional developer-to-residents handover route.

Updated 19 October 2026 · Solarixity, by KGDC Enterprises LLP

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Solar panels on a residential rooftop

Solar for the electricity your community shares

A Group Housing Society (GHS) or Resident Welfare Association (RWA) can plan rooftop solar for common facilities such as lighting, pumps, lifts and eligible EV charging. Size the system against the common-meter energy profile, roof availability and the DISCOM-approved connection arrangement. This connection serves shared facilities. Individual apartment electricity bills need to be assessed separately.

The common-facility subsidy framework

ItemStandard CFA provision
Rate₹18,000 per eligible kW
Overall capacity ceilingUp to 500 kW
Household-linked ceiling3 kW per house, subject to the scheme’s aggregate rules
Included useCommon facilities, including EV charging

Individual residents’ rooftop systems count towards the scheme’s combined capacity ceiling. The remaining eligible capacity determines the common-facility subsidy available to the society, subject to installation and approval.

Illustration: a society with 100 homes

The household-linked ceiling is 100 × 3 kW = 300 kW, below the 500 kW overall limit. A proposed 100 kW common-facility installation would have an indicative CFA of ₹18 lakh at ₹18,000/kW, provided sufficient eligible capacity remains after accounting for individual installations and all other conditions are satisfied. The final eligible amount depends on the approved application.

Can a builder or developer claim the subsidy?

Yes. Developers can apply through the residential common-facility route described in MNRE’s clarification of 19 November 2024. The solar asset is handed over to the residents’ collective once formed, and residents receive the subsidy benefit through lower common-facility charges or tariffs. The application includes undertakings covering that handover and benefit; REC may request supporting documents. This route covers eligible residential common facilities, rather than a developer’s commercial premises.

For developers: plan the handover from the start

  • The residential project, household count, common electricity connection and the capacity already supported under the scheme.
  • The applicant’s authority and the undertaking for handover to the GHS, RWA, apartment owners’ association, cooperative society or other residents’ collective.
  • How the subsidy benefit is passed to residents and how ownership, operating responsibility and maintenance will be transferred.
  • A design, cost and cash-flow schedule that separates installation payments from expected CFA release.
  • Metering, commissioning, electrical safety and supporting documents required by the portal and DISCOM.

Plan now for a useful handover

Reserve safe maintenance access, roof load capacity and routes for cables, earthing and water. Agree who monitors generation, pays for maintenance and manages warranty claims after handover. Solarixity can prepare an engineering and commercial proposal for the developer or the residents’ committee.

Official sources

Builder clarification

MNRE clarification dated 19 November 2024: CFA to RWA/GHS cases.