Solar Dryer Subsidy in India for Farmers, SHGs & FPOs
Looking for a solar dryer subsidy in India? Government financial support may be available when a solar dryer forms part of an eligible food-processing, agricultural value-addition or rural livelihood project. The applicable assistance depends on the applicant, project type, location, eligible project cost and government scheme.
The Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme is one of the main schemes to consider for eligible food-processing projects. Under PMFME provisions applicable in 2026, eligible units can receive a credit-linked capital subsidy of 35% of eligible project cost, up to ₹10 lakh per unit, subject to the scheme's eligibility and implementation conditions. A solar dryer is not automatically eligible for this subsidy simply because it uses solar energy. It must form part of an eligible project and meet the applicable requirements.
Solar dryers can be used by farmers, FPOs, SHGs and food-processing enterprises for products such as fruits, vegetables, spices, herbs and other suitable agricultural produce. MNRE currently identifies solar dryers as decentralised renewable-energy applications that can support livelihoods
Major Solar Dryer Subsidy Schemes in India 2026
Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme
The PMFME Scheme provides 35% credit-linked capital subsidy on eligible project cost, up to ₹10 lakh per unit, for eligible individuals, proprietorships, partnerships, FPOs, NGOs, cooperatives, SHGs and private limited companies setting up or upgrading eligible micro food-processing units.
When a solar dryer forms part of an eligible food-processing or value-addition project, applicants can check whether the equipment and related project costs qualify under the applicable PMFME provisions.
For the applicable individual-unit provision, the beneficiary contribution must beat least 10% of the project cost, with the balance financed through a bank loan, subject to approval and scheme conditions.
The 35% figure should therefore be understood as a subsidy on eligible project cost, not as a flat 35% discount on every solar dryer.
State Rural Livelihood Mission Support (SRLM) Scheme
State Rural Livelihood Missions can support SHGs, FPOs and rural enterprises through different livelihood and food-processing programmes. The type and amount of assistance varies between states and individual programmes.
There is no single 30% or 40% SRLM subsidy that applies to solar dryers across India. Applicants should check the current notification and eligibility conditions of their State Rural Livelihood Mission.
MNRE has documented an example from Assam where a woman food-processing entrepreneur in Dibrugarh obtained a solar dryer through the Assam State Rural Livelihoods Mission (ASRLM) in December 2019. This demonstrates the use of solar dryers through a livelihood programme, but it does not establish a fixed SRLM subsidy percentage for all states.
State Level Solar Dryer Subsidies in India (2026)
State-level support should be checked separately from PMFME. The availability of assistance can depend on the state department, applicant category, type of food-processing activity and current programme.
Rather than applying one subsidy percentage to every state, applicants should verify the latest notification from the relevant agriculture, food-processing, rural livelihood or renewable-energy department.
Maharashtra
The state continues to support solar energy adoption including agricultural solar infrastructure. Renewable energy incentives and allied programs help reduce costs for solar processing systems in rural areas.
Karnataka
Karnataka offers support of around 30% under SRLM-linked rural livelihood and renewable energy assistance programs. These incentives help SHGs, NGOs, and farmer groups adopt solar dryers alongside other clean energy equipment.
Odisha
Odisha keeps up about 30% support through initiatives such as Mission Shakti and Odisha Livelihood Mission in favor of using solar drying systems as means of improving rural businesses.
Uttar Pradesh
Up to 20% assistance is available through livelihood and NGO project support under state rural development schemes. Renewable subsidies strengthen agricultural processing infrastructure.
North East States
States in the Northeast continue to provide around 30% incentives on hybrid and solar-based drying solutions under regional renewable energy missions.
Gujarat
Gujarat continues to offer special 10% support under select livelihood and SHG/NGO focused initiatives that can act as a top-up to central subsidy benefits.
Tamil Nadu
Solar drying units receive 40–50% subsidy (up to ₹3.5 lakh per unit to small and marginal farmers) under the Sub-Mission on Agricultural Mechanization, and SC/ST groups are further supported by the state.
Solar Dryer Subsidy Support From Raheja Solar Food Processing
Raheja Solar Food Processing (RSFP) supports farmers, food processors, SHGs and FPOs in exploring applicable government subsidy schemes for solar dryer projects. Depending on the applicant, location and project requirements, schemes such as PMFME, State Rural Livelihood Mission (SRLM) programmes and other state-level agriculture or food-processing schemes may be applicable.
RSFP can support customers with the relevant solar dryer specifications, quotations and project information required for subsidy planning and application. The applicable scheme, eligibility, subsidy amount and approval remain subject to the current guidelines and decision of the concerned government authority.
For an eligible PMFME project, the current subsidy provision is 35% of eligible project cost, subject to a maximum of ₹10 lakh per unit.
Eligible Project Cost
35% Calculation
Subsidy Before Maximum Limit
₹5 lakh
₹5 lakh × 35%
₹1.75 lakh
₹10 lakh
₹10 lakh × 35%
₹3.50 lakh
₹20 lakh
₹20 lakh × 35%
₹7 lakh
₹30 lakh
₹30 lakh × 35%
₹10.50 lakh
For an individual unit, the applicable maximum is ₹10 lakh, so a project with an eligible cost of ₹30 lakh would not receive ₹10.50 lakh under this provision. The subsidy would be subject to the ₹10 lakh ceiling and all other scheme requirements.
The calculation should be based on the eligible project cost approved under the scheme, not simply the selling price of the solar dryer.
How to Apply for Solar Dryer Subsidy - Step-by-Step Process
The application process depends on the scheme and state. For a PMFME-linked food-processing project, applicants generally need to establish the project, prepare the required documents and complete the applicable financing and approval process.
1
Check Eligibility
Check eligibility on schemes such as the PMFME Scheme, State Rural Livelihood Mission, or state renewable energy missions. Small entrepreneurs, SHGs, NGOs, and farmers FPOs normally qualify.
2
Choose the Solar Dryer
Select a solar dryer based on your crop and capacity needs. Approved manufacturers such as Rudra Solar Energy help you choose a model that meets scheme rules.
3
Arrange Documents
Keep basic documents ready including identity proof, bank details, land or unit details, and the product quotation.
4
Implementation under Scheme
Submit your application either to the concerned office of the agriculture department (District Industries Centre / SRLM) or through online portals.
5
Get Approval
Approval will be granted after scrutiny of the application and site verification if necessary.
6
Installation of Solar Dryer
Installation of the solar dryer takes place post-approval at your premises.
7
Receive the Subsidy
Once installation is verified, the subsidy amount is released directly or adjusted through the loan.
Benefits of Using Solar Dryers
Hygienic drying of fruits, vegetables, spices, herbs, fish, flowers, and grains
Reduces post-harvest losses and spoilage
Retains natural color, taste, and nutrients
Increases shelf life and storage options
Lowers energy costs with solar power
Improves income and market opportunities for farmers and SHGs
MNRE has documented a solar dryer livelihood project in Uttarakhand involving a cooperative of approximately 200 farmers, most of whom were women. The cooperative used the dryer for products including rosemary, lemongrass, turmeric, parsley and other crops.
Who Can Apply for Solar Dryer Subsidy in India
Eligibility depends on the specific government scheme.
Small and Marginal Farmers
Can explore applicable agriculture and food-processing support for value addition and post-harvest processing.
Farmer Producer Organizations (FPOs)
Can explore individual or common-infrastructure support depending on the project structure and applicable scheme.
Self-Help Groups (SHGs)
Can explore PMFME and State Rural Livelihood Mission support for eligible food-processing activities.
Agri-Entrepreneurs & Micro Units:
Eligible micro food-processing enterprises can explore PMFME credit-linked subsidy provisions.
NGOs & Rural Cooperatives
May qualify under specific PMFME components where the project and applicant meet the scheme requirements.
Partnership & Private Firms:
Partnerships and private limited companies are among the categories listed under the applicable PMFME credit-linked subsidy provision.
PMFME Support for SHGs
PMFME also provides seed capital of ₹40,000 per SHG member, subject to a maximum of ₹4 lakh per SHG, for working capital and purchase of small tools under the scheme's SHG support provision.
This seed capital provision is different from the 35% credit-linked capital subsidy for eligible units and should not be presented as a solar dryer subsidy.
Funding Support Beyond Subsidies
Applicants can also explore financing options alongside applicable subsidy programmes.
Bank finance: PMFME's credit-linked subsidy structure involves bank financing for the eligible project, subject to approval.
State government programmes: Agriculture, food-processing and rural livelihood departments may have additional support for eligible activities.
SHG and FPO financing: Groups can explore financing arrangements available through their respective livelihood and financial programmes.
Different schemes have separate eligibility requirements, so one form of financial support should not automatically be treated as a guaranteed additional subsidy.
Tips for Choosing the Right Solar Dryer
Match the capacity with crop volume:Choose a dryer based on the quantity of produce available for each batch and expected annual utilisation.
Check the product requirements:Fruits, vegetables, spices and herbs can have different drying requirements.
Review drying conditions: Check temperature range, airflow, ventilation and moisture removal for the intended products.
Check construction and food-contact materials:Trays and product-contact surfaces should be suitable for food processing.
Consider installation requirements: Review available space, solar exposure, orientation and access to the installation site.
Check maintenance requirements:Understand cleaning, servicing, spare parts and operating requirements before purchase.
Compare the complete project cost: For a subsidy application, consider the full eligible project cost rather than looking only at the dryer quotation.
Keep the subsidy rules in mind: Confirm whether the selected equipment and project costs are eligible before placing the order.
RSFP Solar Dryer vs Other Drying Machines
Choosing a drying system depends on energy availability, product requirements, operating costs and the scale of processing. Solar dryers can reduce dependence on purchased electricity or fuel, while electric, diesel and other fuel-based dryers provide different operating and temperature-control options.
Feature
RSFP Solar Dryer
Electric Dryers
Diesel Dryers
Fuel-Based Dryers
Energy Source
Solar energy, with minimal dependence on grid electricity
Electricity
Diesel fuel
Biomass or other fuels
Type of Dryer
Cabinet, tunnel and hybrid solar dryer options
Cabinet, tunnel and hot-air dryers
Cabinet, tunnel and hot-air dryers
Cabinet, tunnel and tray dryers
Drying Process
Uses solar heat with controlled drying conditions depending on the model
Uses electrically generated heat
Uses heat generated from diesel fuel
Uses heat generated from biomass or other fuels
Product Quality
Designed for controlled and uniform drying when operated under suitable conditions
Temperature can be controlled according to the dryer
Temperature depends on the system and operating conditions
Drying performance depends on fuel type and system design
Environmental Impact
Uses renewable solar energy and can reduce dependence on fossil fuels
Depends on the source of electricity
Higher dependence on fossil fuels
Depends on the fuel used
Subsidy Support
May qualify under applicable food-processing, livelihood or state schemes, subject to eligibility
Depends on the applicable scheme
Depends on the applicable scheme
Depends on the applicable scheme
Operational Cost
Low running cost after installation, with maintenance requirements
Electricity costs vary with usage
Fuel and maintenance costs
Fuel and maintenance costs vary by system
Common Questions About Solar Dryer Subsidy in India
Yes, financial assistance may be available when a solar dryer forms part of an eligible food-processing, agricultural value-addition or livelihood project. However, there is no single nationwide subsidy that automatically applies to every solar dryer.
Under PMFME, eligible units can receive a 35% credit-linked capital subsidy on eligible project cost, up to ₹10 lakh per unit, subject to the applicable scheme conditions. MNRE also recognises solar dryers as decentralised renewable-energy applications for livelihoods.
The subsidy amount depends on the applicable scheme, applicant category and eligible project cost.
For an eligible PMFME individual unit, the credit-linked capital subsidy is 35% of eligible project cost, subject to a maximum of ₹10 lakh per unit. For example, if the eligible project cost is ₹20 lakh, 35% would be ₹7 lakh.
The calculation is based on the eligible project cost approved under the scheme, not automatically on the purchase price of the solar dryer.
A solar dryer may be considered when it forms part of an eligible food-processing or value-addition project.
Under the applicable PMFME provision, eligible units can receive 35% credit-linked capital subsidy on eligible project cost, up to ₹10 lakh per unit. The equipment, project activity and expenditure must meet the relevant eligibility and eligible-cost requirements.
It should not be treated as an automatic 35% subsidy on every solar dryer purchase.
MNRE currently identifies solar dryers as decentralised renewable-energy applications for livelihoods. However, this does not mean that every solar dryer automatically receives a fixed MNRE subsidy.
Any financial assistance should be checked against the specific current central or state programme applicable to the project.
Eligibility depends on the specific government scheme. Depending on the programme, applicants may include farmers, individual micro food-processing units, SHGs, FPOs, cooperatives and other eligible organisations.
The applicant's activity, project type, location, equipment and eligible project cost must meet the conditions of the selected scheme.
Farmers may be eligible for financial assistance when a solar dryer forms part of an eligible agricultural, food-processing, value-addition or livelihood project.
Being a farmer alone does not guarantee a subsidy. Eligibility depends on the applicable scheme, applicant category, project activity and eligible expenditure.
SHGs can explore PMFME and State Rural Livelihood Mission programmes for eligible food-processing and livelihood activities.
Under PMFME, SHGs can receive ₹40,000 seed capital per member, up to ₹4 lakh per SHG, for working capital and the purchase of small tools, subject to scheme conditions. This seed capital should not be described as a fixed solar dryer subsidy.
Eligible SHG-related food-processing activities may also qualify for other PMFME support.
FPOs can explore PMFME support when a solar dryer forms part of an eligible food-processing or common-infrastructure project.
Under the PMFME common-infrastructure component, eligible FPOs/FPCs and other qualifying organisations may receive 35% credit-linked capital subsidy on eligible project cost, up to ₹3 crore, subject to the applicable conditions.
The required documents vary according to the scheme and applicant category. They may include identity and address proof, bank details, business or organisation documents, project reports, equipment quotations and financial records.
Additional documents may be required by the implementing department or lending institution. Applicants should check the latest document requirements for the specific scheme before applying.
A new food-processing unit may qualify for government assistance if it meets the eligibility requirements of the applicable scheme.
Under PMFME, eligible new and existing micro food-processing units can receive support under the applicable provisions. If a solar dryer forms part of the proposed processing project, its eligibility and cost treatment must be assessed under the relevant scheme.
An existing eligible food-processing business may be able to receive support for upgrading or expanding its processing activity.
Under the applicable PMFME individual-unit provision, eligible units can receive 35% credit-linked capital subsidy on eligible project cost, up to ₹10 lakh per unit, subject to the scheme conditions.
Not necessarily. Different government schemes have separate rules regarding eligible expenditure, financial assistance and the combination of benefits.
Applicants should confirm whether the specific schemes permit combined assistance for the same equipment or project cost before including both amounts in their financial calculations.
For the applicable individual-unit provision, the beneficiary contribution is at least 10% of the project cost. The remaining requirement is financed through a bank loan, subject to approval and the scheme conditions.
The financing structure can differ for group and common-infrastructure projects.
A Tamil Nadu Agriculture Department document for the 2022–23 Sub-Mission on Agricultural Mechanization proposed ₹3 lakh maximum subsidy assistance per solar dryer for solar dryers with a floor area of approximately 400 to 1,000 sq. ft. The document relates to that specific programme year, so applicants should check the latest Tamil Nadu government notification for current 2026 assistance.
Solar dryer subsidy is a general term used for government financial assistance that may support a solar-drying project.
PMFME subsidy refers specifically to financial assistance available under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme.
PMFME does not provide a universal subsidy simply because equipment is a solar dryer. The equipment must form part of an eligible food-processing project and meet the relevant scheme conditions.
Yes. An Odisha Livelihoods Mission programme document lists solar dryers as an indicative low-cost primary-processing machine along with de-seeders, rice hullers, packing machines, grinders and dal mills.
The document does not establish a universal 30% solar dryer subsidy, so the current programme conditions should be checked before calculating financial assistance.
Designed and Developed by Raheja Solar Food Processing
