Solar Panel Subsidy In India, 2022
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Solar Panel Subsidy In India, 2022

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 as efficiency, warranty, temperature coefficient, and stability will 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.


Benefits of Solar Subsidy


There are mainly three parties involved in 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. They will 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.




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. 


Getting solar panels installed 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 getting your solar panels installed for your homes or industries.

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