The top 3 states for solar energy in India, namely Gujarat, Rajasthan and Madhya Pradesh. However, it is Karnataka which leads in terms of PV installed capacity with two projects of 3 MW each, at Kolar and Belgaum. In fact, a 35,000 km² area of Rajasthan’s the Thar Desert has been set aside for solar power projects sufficient to generate 700 to 2,100 gigawatts.
E.g.:
Madhya Pradesh
The top 5 districts with the best solar irradiation in Madhya Pradesh are given below.
| Sl. No | District | Average annual radiation (kWh/m2/day) |
| 1 | Neemuch | 5.49 |
| 2 | Alirajpur | 5.46 |
| 3 | Mandsaur | 5.41 |
| 4 | Ashoknagar | 5.4 |
| 5 | Shivpuri | 5.4 |
Gujarat
The top 5 districts with the best solar irradiation in Gujarat are given below.
| Sl. No | District | Average annual radiation (kWh/m2/day) |
| 1 | Patan | 5.44 |
| 2 | Mehsana | 5.41 |
| 3 | Banaskantha | 5.38 |
| 4 | Porbandar | 5.32 |
| 5 | Amreli | 5.31 |
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Rather than insolation incentives are more important for solar PV plant developers, economically speaking, especially now a few region-specific NSM incentives have been announced by the MNRE.
Under the latest National Solar Mission guidelines released by the government, for off-grid / rooftop solar PV installations of a maximum capacity of 100 Wp per site, and for mini-grids for remote electrification with a maximum capacity of up to 250 kW, some regions were allotted a special subsidy:
+This subsidy is calculated on the basis of a cost benchmarked by MNRE, and is notionally equal to 30% of benchmarked cost of solar power systems for solar power systems across India.
1. For special category states viz. NE, Sikkim, Himachal Pradesh, and Uttarakhand, subsidy is fixed at Rs. 90 per Wp (with battery storage), and at around Rs. 70 per Wp (without battery storage) for 2010.
2. For Solar PV plants in micro-grid mode/local distribution network, to meet unmet community need for power in unelectrified rural areas, a capital subsidy of Rs 150/Wp will be provided, and it is stated that a capital subsidy of up to 90% of installation cost can potentially be availed.
3. In Difficult-to-reach areas such as Lakshadweep, Andaman and Nicobar Islands, and districts on India’s borders, the subsidy availed will also be 90%. Under the same guidelines, in difficult-to-reach areas such as Lakshadweep, Andaman and Nicobar Islands, and districts on India’s borders, the capital subsidy availed will be 60% of benchmarked costs for solar thermal installations for off-grid solar CSP installations.
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