A Complete Guide to Solar Panel Subsidies in India

Solar technology is progressively evolving and becoming more promising day by day. Therefore, installing Solar power plant could be the best decision you can make financially and environmentally. The cost and technology improvements make the solar system a sustainable option for large organizations and individual consumers.

Though it is crucial to research the technical parameters of a solar panel, the primary step is to analyze the fundamental characteristics of the solar panel. Solar power installation includes a considerable investment, and it is a lifetime decision for your property. It is, therefore, essential to think on all lines.

Factors such asefficiency,warranty,temperature coefficient, andstabilitywill go a long way in determining the number of panels needed and Solar PV suppliers, which will, consecutively, determine the total capital expenditure. However, the government is also undertaking several subsidy schemes to support solar power installations all over the country.

Various incentive solar subsidy schemes, such as aggressive bidding trajectory, Solar Rooftop Scheme, implementation of Solar Park, Solar Defense Scheme, etc., have been laid down to support the government’s bold solar numbers. So let’s find out what solar subsidy is?

What Is A Solar Subsidy?

The Indian government has made some efforts to enhance the installation of solar panels in commercial and residential sectors. The government has started the solar panel subsidy scheme to install solar systems as financial aid to make this initiative more efficient. This solar subsidy for self-consumption allows a saving in your solar power installation of around 40% – 50%.

Today India is one of the leading countries with the maximum solar panel installations rate worldwide. This green initiative has led to a revolutionary transformation where we contribute to preserving our atmosphere. Moreover, it helps in preventing CO2 emissions into the atmosphere. Therefore, this issue is progressively sought in all areas and sectors.

These solar subsidy schemes, intended primarily for solar panel installations in single-family homes or neighborhood communities, can be requested by anybody who wants to install a solar system in their home.

Land covered with golden sun beams, India is firmly embracing its role as a global solar powerhouse. The Indian government's consistent dedication to renewable energy shows its ambitious solar panel subsidy projects in 2024 and 2025. These strategically crafted schemes are meant to enable homes, companies, businesses, and communities to make the most of the solar energy available while lessening the financial load of using solar technology.

Under the PM-KUSUM (Pradhan Mantri Kisan Urja Suraksha) scheme, farmers sponsored to install solar pumps and grid-connected panels cause rural India to see a transforming leap. This double benefit not only lessens reliance on conventional energy resources but also fosters a self-reliant agricultural ecology. For city people, especially for residential and institutional buildings, incentives of up to 40% for rooftop solar installations highlight routes to reasonably priced green energy.

Acknowledging the need to hasten the acceptance of rooftop solar energy, the government has raised the financial support for the residential sector. Aimed at addressing the increasing cost of solar panels and motivating families to use solar energy, support for capacities up to 3 kW has been enhanced to Rs 18,000 per kW for general states and Rs 20,000 for special category states.

REC Ltd, designated as the agency to implement the programme, has approved approximately Rs 15,000 crore for eight central public sector undertakings to facilitate the installation of rooftop solar projects. Aiming to activate 10 million rooftop projects across the country, REC pledges to grant up to Rs 1.2 lakh crore. The states like UP, Chhattisgarh, Rajasistan, Maharashtra and MP have already started making significant efforts to make the solar mission possible.

Anticipating 2025, India's solar aspirations are driven by incentives tailored to each state that supplement government subsidies. States blessed with solar abundance — Gujarat, Rajasthan, Tamil Nadu — have already taken on initiatives catered to their particular energy demands. To promote general acceptance, they include net metering rules, tax incentives, and interest-free loans.

The effects are several: lower carbon footprints, energy savings, and a more determined willingness to reach India's ambitious 500 GW renewable energy goal by 2030. Subsidies provide the last push for millions to switch to sustainable energy while technological developments lower the cost of solar panels.

The solar subsidy storyline of 2024 and 2025 is a saga of hope and resiliency, therefore reflecting India's relentless march towards sustainability. The government ensures that the promise of solar energy becomes an actual possibility for everybody by removing financial obstacles and supporting inclusiveness.

Benefits of Solar Subsidy

There are mainly three parties involvedin the procedure:

Customer Benefits

The solar subsidy is only available for residential homes (single-family homes and large apartments), not for the commercial and industrial sectors. Additionally, a solar subsidy is available on Grid Connected Solar System (Without Battery System). Since installing a solar system is a significant investment, financial aid provides an incentive for people to invest and alleviates some of the burdens.

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

Homeowners can install solar panels and claim solar subsidies through the state DISCOM. Theywill share customer details and register the nearest channel partner to install a solar panel through a solar subsidy scheme.

The solar installation company will provide five years of performance warranty, then after you are self-responsible for your solar system. However, this solar subsidy is not available for commercial and industrial customers because they can avail of additional benefits like accelerated depreciation, tax holidays, excise duty exemptions, etc.

Keep reading: Solar Power Plant Warranty Policy

Channel Partner Benefits

Channel Partners can acquire more benefits from a large customer base and more business. It is difficult for an ordinary person to understand the process of getting a solar subsidy even if they need it. It is now that the channel partner steps in. Channel partners work with the customer and government departments and speed up the process of obtaining a solar subsidy for the consumer.

DISCOMS Benefits

The demand for energy consumption decreases in residential areas and increases in commercial spaces. Indeed, we know that commercial areas require more energy than residential areas. The customer is happy because he received his financial assistance. The channel partner is satisfied as he got a new customer. The government is happy, as it is one step closer to its solar target installation.

How To Avail Of The Subsidy?

Both central and state offer solar subsidy schemes for installing solar rooftop systems. The central government pays a 30% solar subsidy to states to install solar systems for general categories. However, for states like Himachal Pradesh, Uttarakhand, Jammu & Kashmir, Sikkim, and Lakshadweep, the solar subsidy of up to 70% is provided by the central government.

To qualify for the solar subsidy, the average cost of installing solar rooftop systems without a solar subsidy would need to be around Rs 60,000 to 70,000. The customer should generate 1100 kWh – 1500 kWh to avail generation-based incentive per year.

A person interested in obtaining a solar subsidy must follow specific protocols. First, he will have to contact their electricity provider or apply online with essential documentation. Then the electricity provider will visit the installation site for review and approval. After approval from the provider, customers can avail the solar subsidy amount.

The government has announced a 40% subsidy for up to a 3 kW system. The solar subsidy is available for residential homeowners who install on-grid solar systems. The state DISCOM company provides it after submitting the full installation documents on their portal.

Conclusion

Several organizations have invested in the solar business as solar energy has become mainstream. However, solar involves a considerable investment, and it becomes vital for consumers to choose a solar company in India capable of honoring their commitment.

Gettingsolar panelsinstalled is now easier with the government’s solar subsidy and support. It has now become a solution for all Indian homes. However, it is worth recognizing that solar panels are not economical. While they pay for your investment in the long run, they require a significant first-time investment.

Solar System installation is an essential process, and it is helpful only when performed by experts. Insolation Energy is India’s most renowned solar energy company that provides complete professional assistance for installing your solar panel system.Therefore, Insolation energy is the best bet for gettingyour solar panelsinstalled for your homes or industries.

11.January.22