When discussing solar energy, you can’t ignore the importance of pricing and subsidies. The government, both at the central and state levels, has big plans to boost solar power capacity. Rooftop solar installations are at an all-time high. Hence, it becomes crucial for you to understand the concept of a solar subsidy in India and its related schemes, incentives, and rebates.
Let’s unravel the key factors fueling the growth of the industry and also delve into the available solar subsidies in India.
Understanding Solar Subsidy in India:
How much subsidy is available for a solar power plant in India? How to get solar energy subsidies in the country? Solar subsidies in India play a pivotal role in making solar power more accessible and affordable for individuals, businesses, and industries.
These subsidies represent financial incentives provided by the government to encourage the installation of solar power systems. The primary objective is to promote sustainable energy practices while reducing dependency on conventional energy sources.
Now, let’s go to the solar panel rates and check their approximate pricing depending on the subsidized rates.
Solar Panel Pricing After Subsidies
Below are a few key pointers outlining the different pricing for solar panel capacities. Please note that actual prices may vary based on factors such as brand, quality, location, and additional components like changes in rebates and subsidy laws.
1 kW Solar Panel Price in India with Subsidy:
- Approximate Cost After Subsidies: 20,000 – 30,000 INR
- Total Cost After Subsidies for 1 kW: 20,000 – 30,000 INR
2 kW Solar Panel Price in India with Subsidy:
- Approximate Cost After Subsidies: 18,000 – 28,000 INR
- Total Cost After Subsidies for 2 kW: 36,000 – 56,000 INR
3 KW Solar Panel Price in India with Subsidy
- Approximate Cost After Subsidies: 16,000 – 26,000 INR per kW
- Total Cost After Subsidies for 3 kW: 78,000 – 108,000 INR
5 kW Solar Panel Price in India with Subsidy:
- Approximate Cost After Subsidies: 16,000 – 26,000 INR
- Total Cost After Subsidies for 5 kW: 80,000 – 130,000 INR
10 kW Solar Panel Price in India with Subsidy:
- Approximate Cost After Subsidies: 14,000 – 24,000 INR
- Total Cost After Subsidies for 10 kW: 140,000 – 240,000 INR
20 kW Solar Panel Price in India with Subsidy:
- Approximate Cost After Subsidies: 12,000 – 22,000 INR
- Total Cost After Subsidies for 20 kW: 240,000 – 440,000 INR
Next, let’s take you through the different types of rebates that are offered to consumers at the time of solar installation.
Types of Solar Subsidies:
1) Central Government Subsidies:
The Ministry of New and Renewable Energy (MNRE) is the central body overseeing solar subsidies in India. There are subsidies and income tax exemptions available for both grid-connected and off-grid solar systems.
2) State Government Subsidies:
Several states offer additional incentives on top of the central government subsidies.
State-specific policies may vary, and it’s essential to be aware of the offerings in your region.
3) Subsidies for Residential, Commercial, and Industrial Installations:
Solar subsidies in India cater to a diverse range of consumers, including residential, commercial, and industrial entities. The amount of subsidy may differ based on the scale and type of installation.
4) Rooftop Solar Subsidies:
Rooftop solar installations for homes and businesses often enjoy specific subsidies.
These subsidies aim to encourage decentralized solar power generation.
A List of Solar Rebates and Incentives
Apart from subsidies, there are additional benefits such as rebates and incentives that further sweeten the deal for solar adopters.
I) Accelerated Depreciation:
Businesses investing in solar power can avail of accelerated depreciation benefits, reducing their tax liabilities.
II) Net Metering:
Net metering allows consumers to sell excess electricity generated by their solar systems back to the grid. Some states offer incentives for net metering, making it financially attractive.
III) Customs Duties and Excise Duty Exemptions:
The government may provide exemptions on customs duties and excise duties for solar equipment, lowering overall installation costs.
IV) Soft Loans and Financing Options:
Financial institutions often collaborate with the government to provide soft loans and attractive financing options for solar projects.
Moving on, we know you want to look at the top renewable energy schemes that are prevalent in India. Fret not, we have covered all the related schemes below.
Renewable Energy Schemes in India
There are various government schemes for solar energy in India. To promote the adoption of clean and sustainable energy sources, here is a list of some key renewable energy schemes in India:
1) Jawaharlal Nehru National Solar Mission (JNNSM): Launched in 2010, JNNSM aims to promote solar power generation in India and achieve the target of 100 GW solar capacity by 2022.
2) Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM-KUSUM): This scheme focuses on promoting solar energy in the agricultural sector by providing financial and water-pumping solutions.
3) National Wind-Solar Hybrid Policy: Introduced to encourage the development of hybrid projects that combine wind and solar power generation, optimizing land use and grid infrastructure.
4) Bharat Rural Livelihoods Foundation (BRLF): BRLF supports off-grid and decentralized renewable energy projects in rural areas, aiming to improve energy access and livelihoods.
5) Grid-Connected Rooftop Solar Program: Implemented to encourage the installation of rooftop solar panels on residential, commercial, and industrial buildings to promote decentralized power generation.
6) National Biogas and Manure Management Programme (NBMMP): Focused on promoting the use of biogas for cooking and organic manure production in rural areas.
7) National Biomass Cookstoves Initiative: Aims to replace traditional cookstoves with more efficient and cleaner biomass cookstoves to improve indoor air quality and reduce biomass consumption.
8) Hydro Power Policy: Policies supporting the development of hydropower projects, with a focus on sustainable and environmentally friendly practices.
9) FAME India Scheme (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles): While not exclusively for renewable energy, FAME India encourages the adoption of electric vehicles to reduce dependence on fossil fuels.
10) Green Energy Corridor Project: An initiative to strengthen the transmission infrastructure for renewable energy, ensuring the smooth integration of renewable power into the national grid.
11) Bioenergy Mission: Aim to promote the use of bioenergy, including biofuels and biomass power, as a sustainable energy source.
12) Remote Village Electrification Program: Focused on providing renewable energy solutions to remote and off-grid villages, improving energy access, and reducing dependence on conventional sources.
13) Solar Water Pumping Program: Encourages the use of solar energy for agricultural water pumping to reduce dependence on conventional electricity and diesel pumps.
14) National Offshore Wind Energy Policy: Envisages the development of offshore wind energy projects to harness the potential of wind resources along the coast.
Please keep in mind that it is not an exhaustive list. The schemes are subject to rapid change due to transitioning laws of the government schemes. You must refer to appropriate local state authorities for the relevant information.
Finally, let’s go through the frequently asked questions about a solar subsidy in India.
FAQs on Solar Subsidy in India
Who is eligible for a solar subsidy in India?
Residential consumers, commercial establishments, and industries are eligible for solar subsidies. The eligibility criteria may vary between states.
How much is a solar energy subsidy in India?
The solar energy subsidies vary greatly among different state authorities. Different state governments provide subsidies anywhere between 40 to 60% of the total projected cost of solar panels.
To avail of solar subsidies, there are multiple steps like registration, documentation, and compliance with technical specifications.
How can I get a subsidy on a solar panel?
Both grid-connected and off-grid solar installations, including rooftop solar, are eligible for subsidies. The scale of the installation may influence the amount of subsidy. You have to apply online to check the legal procedure and technical requirements.
Is there any subsidy for solar energy in India?
Yes, businesses can benefit from subsidies like accelerated depreciation, which helps reduce tax liabilities. Additionally, individuals may enjoy income tax benefits on the interest paid on loans taken to install solar systems.
Are solar rebates still available in all states of India?
While most states offer solar subsidies, the extent and nature of the incentives may vary. It’s crucial to check with local authorities and the Department of Renewable Energy as the policies are subject to change.
What solar rebates are available right now?
Discoms and state authorities offer direct benefit transfers for residential consumers to encourage them to install rooftop solar systems. Depending on the capacity, there are subsidies of different amounts, like INR 14588, 7294, and 94822.
Please refer to government websites for accurate and updated information.
Are there any performance criteria for subsidized solar installations?
Yes, subsidized solar installations must often meet performance criteria outlined by the MNRE and state agencies. Regular monitoring and compliance are essential.
Solar subsidy in India plays a pivotal role in advancing the country’s renewable energy goals. As we navigate the transition towards a sustainable future, understanding the available subsidies, rebates, and incentives becomes crucial.
It is recommended to stay updated with the latest policies, consult with local authorities, and consider seeking professional advice for the optimal utilization of solar subsidies in India.
Do you want to unlock the power of solar energy investments and leverage the financial benefits provided by the government? Get in touch with Sustvest today to build a larger goal of a greener and more sustainable India in 2023 and beyond.
Founder of Sustvest
Hardik completed his B.Tech from BITS Pilani. Keeping the current global scenario, the growth of renewable energy in mind, and people looking for investment opportunities in mind he founded SustVest ( formerly, Solar Grid X ) in 2018. This venture led him to achieve the ‘Emerging Fintech Talent of the Year in MENA region ‘ in October 2019.