When we talk about solar energy, we first consider solar system pricing, followed by solar panel subsidy schemes. Today, we will learn about the government’s solar subsidy scheme and the procedures in each state of India.
On the 5th of Jan 2024, govt of India announced increased subsidy on rooftop solar.
In this article, you will learn all about Solar Panel Subsidy in India. We spoke with several solar industry specialists while writing this article to make sure that you get the correct information.
Page Contents
What Does Solar Subsidy Mean?
We all know that solar energy is a free and clean form of energy that minimizes our reliance on natural resources like water and coal. The government intends to install solar panels on every home’s roof so that it can generate its energy. The government provides financial assistance to people who want to put solar panels in their homes.
Eligibility for Subsidy on Solar Panels
On-grid Solar or Off-grid Solar?
If you are wondering what kind of solar system is eligible for receiving the subsidy, On-grid or Off-grid? then here is the answer
- Off-grid setup requires a battery bank, this setup wasn’t eligible for subsidy earlier, nor it is eligible now.
- If you are opting for a system without a battery, an On-grid system where you have a grid-connected with the solar, only then you are eligible for a subsidy.
Residential or Commercial Solar Projects?
Only residential projects are eligible to receive subsidy, commercials projects are not eligible for subsidy.
Even in the residential projects, there are 2 categories,
- Individual Households – One that has its own home and roof. And they want to install solar to fulfill their energy requirements. If this is you then you will get the subsidy.
- Residents Welfare Association/Group Housing Societies – Then there are those people who live in buildings(in flats), which are called group housing societies. In these flats, people do not get a personal roof but instead a common roof. And in a common roof, you cannot install a personal solar setup.
However, there are still subsidy options for such people but only on common facilities that are shared by every house in the society like lifts, lights in common areas, water pumps, etc. You can install solar setup on a common roof for all these common facilities where electricity is required and avail subsidy on it.
How much Subsidy on Solar Panels?
As of 2024, the subsidy process and amount both have been updated.
Below is a circular posted by the Ministry of New and Renewable Energy on the 5th of Jan 2024.
Let’s talk about the amount that you can avail through subsidy. It is divided into two groups, one for Individual households and the second for RWA/Group Housing societies.
Solar Subsidy for Individual Households
Earlier, anyone who applied for a solar subsidy for an individual household used to get 14588/KW for the first 3 KW and after that, till 10kW, will get Rs 7294/KW. No subsidy over 10kW.
But this amount has now been increased to 18000/KW for the first 3 KW and after that, till 10kW, will get Rs 9000/KW in 2024. This new increased subsidy amount is effective from the 5th of Jan 2024.
Below is a table to understand this subsidy amount for different kW solar setups.
| Solar Setup | Subsidy Amount |
|---|---|
| 1 KW | Rs 18000 |
| 2KW | Rs 36000 |
| 3KW | Rs 54000 |
| 4KW | Rs 63000 |
| 5KW | Rs 72000 |
| 6KW | Rs 81000 |
| 7KW | Rs 90000 |
| 8KW | Rs 99000 |
| 9KW | Rs 108000 |
| 10KW | Rs 117000 |
| Above 10KW | Fixed Rs 117000 |
This was the process for people with their own homes.
Solar Subsidy for RWA/Group Housing Societies
The rules are different for RWA/GHS where you don’t have your personal roof. So you cannot install solar for your personal needs.
In such societies, you can install solar setups for common facilities like lifts, water pumps, and lights in common areas
This amount has also been increased to Rs 9000/KW till a maximum of 500 KW solar setup. Beyond that, you won’t get any subsidy.
If your building roof is not spacious enough and you are limited to a setup of 100 KW then you will get the subsidy of Rs 9000*100 = Rs 900000.
The maximum you will get a subsidy of 500 KW if you use all space on your roof, which will be Rs 9000*500 = Rs 4500000.
Below is the table to understand it properly.
| Solar Setup | Subsidy Amount |
|---|---|
| 100KW | Rs 9,00,000 |
| 200KW | Rs 18,00,000 |
| 300KW | Rs 27,00,000 |
| 400KW | Rs 36,00,000 |
| 500KW | Rs 45,00,000 |
| Above 500KW | Fixed Rs 45,00,000 |
You can install a solar setup depending on your requirement, sanction load and the shadow-free area.
Solar Subsidy for Special States in India
The government of India has increased the subsidy amount further for the areas with difficulties in reaching. These states are Mizoram, Manipur, Tripura, Meghalaya, Nagaland, Assam, Arunachal Pradesh, Sikkim, Uttarakhand, Himachal, UT of J&K, Ladakh, Lakshadweep, and Andaman & Nicobar Islands.
These are the states with hilly areas or disconnected from the mainland. If you apply for the solar subsidy for individual households in these states, you’ll get Rs 20000/KW for the first 3KWs followed by Rs 10000/KW for the next 7KWs.
Let’s understand this with the table
| Solar Setup | Subsidy Amount |
|---|---|
| 1 KW | Rs 20000 |
| 2KW | Rs 40000 |
| 3KW | Rs 60000 |
| 4KW | Rs 70000 |
| 5KW | Rs 80000 |
| 6KW | Rs 90000 |
| 7KW | Rs 100000 |
| 8KW | Rs 110000 |
| 9KW | Rs 120000 |
| 10KW | Rs 130000 |
| Above 10KW | Fixed Rs 130000 |
The amount for RWA/GHS is also different here, it is Rs 10000/KW and the maximum limit is 500 KW. Below is the table to understand this as well.
| Solar Setup | Subsidy Amount |
|---|---|
| 100KW | Rs 10,00,000 |
| 200KW | Rs 20,00,000 |
| 300KW | Rs 30,00,000 |
| 400KW | Rs 40,00,000 |
| 500KW | Rs 50,00,000 |
| Above 500KW | Fixed Rs 50,00,000 |
This is the solar subsidy amount for 2024 by the central government. But in some states, the state govt (e.g.- Uttar Pradesh) also provides subsidies which will increase your amount when you get subsidies from both the state and the centre.
Solar Subsidy Application Process in India 2024
The government of India launched a dedicated portal for rooftop solar called the National Portal for Rooftop Solar. This portal was launched on 30 July 2022.
Through this portal, you can apply for the subsidy. Here is the step-by-step process.
- Firstly, you have to download the Sandes app and then register with all the following documents (e.g.- state, electricity consumer no, mobile, email, etc.)
- Once your registration is done, you can log in through your Electricity consumer number and mobile number.
- Then you have to apply from the solar rooftop portal for the process and wait for the feasibility approval from your DISCOM. Feasibility approval means you are eligible to install solar panels.
- After that, you can contact a registered vendor from this same portal to begin the process of installation. You can get the details of nearby registered vendors on this portal only. You can connect with them and ask everything about the process, installation cost, and other information, etc. You can choose any vendor as per your comfort. The finalized vendor cannot be changed later on hence it has to be chosen wisely. If you wish to change the vendor later then you have to cancel the whole application and start from scratch.
- Once this installation is done, you have to apply for a net meter from this same portal.
- Once the net meter is installed, DISCOM will visit for inspection, and based on it, they will generate a commissioning certificate from the portal.
- Once you get the commissioning certificate, you will have to submit your bank details and a cancelled cheque through this portal.
- The subsidy amount will be given to the beneficiary account. You will get the subsidy amount in your bank account within 30 days.
Note: This whole process should be done by you only through this portal, vendor will not do this. Though, you can get help from your vendor.
You have to create your account and apply with your documents. Wrong documents or misled information can lead to the application rejection.
Why Does The Government Provide Solar Subsidy?
Earlier, India set a goal of installing 40 gigawatts of solar panels on residential structures by 2021, but just 5 gigawatts have been installed so far. Now, The Indian government has set a goal of installing 280GW of solar panels by 2030, which means that 10GW should be installed per year.
The government has launched new initiatives to encourage the installation of solar panels at residences, such as allowing any client to have solar panels installed by any solar dealer, distributor, or company, and then sending a photo of the installation to the local electricity board.
Solar Panel Subsidy Scheme in Different States of India 2024
1. Solar Panel Subsidy in Maharashtra
MEDA is in charge of Maharashtra’s solar project subsidy. Maharashtra currently has more than 1800 MW of installed solar energy capacity, with rooftop solar nearing 230 MW. It boasts the country’s fourth-largest installed rooftop solar power-producing capacity. The state’s strategy of giving financial aid for the use of solar energy in cottages and micro businesses is being strengthened.
2. Solar Panel Subsidy in Rajasthan
The government announced a 40% subsidy for systems up to 3 kW, but because of the pandemic, getting funding was problematic. Residential homeowners who install on-grid solar systems are eligible for the incentive. After submitting the entire installation documentation on their portal, the state DISCOM business will offer it.
3. Solar Panel Subsidy in Kerala
The centre would give a 20 percent subsidy for group housing society projects and residential welfare organizations with a capacity of up to 500 kW. If a customer desires to build the plant in its entirety, they can receive a subsidy of up to 40% of the plant’s cost.
4. Solar Panel Subsidy in Haryana
Haryana (Department of Renewal Energy) has initiated an electricity-saving initiative named Solar Rooftop Power Plant to preserve the resources for future generations. Solar System Plants are provided to every residential, institutional, social sector, private, commercial, and industrial sector in the state under this scheme.
5. Solar Panel Subsidy in Uttar Pradesh
In Uttar Pradesh, there is a subsidy for solar panels. Uttar Pradesh is one of India’s largest and poorest states, although it receives a lot of sunlight. The state plans to build solar parks on public land in various sections of the state. In India, Uttar Pradesh has the seventh-largest installed rooftop solar power-producing capacity.
6. Solar Panel Subsidy in West Bengal
In India, West Bengal is a pioneer in solar technology. WEBEL, a government-owned company, was one of the country’s first solar energy panel manufacturers. Solar rooftop systems must be installed by all big housing societies in West Bengal (with a total contract demand of more than 500 kW) to meet a minimum of 1.5 percent of their total electrical load. The subsidies are available following SECI criteria.
7. Solar Panel Subsidy in Madhya Pradesh
The government announced a 40% subsidy for up to 3 kW systems, but due to the lack of funding during the pandemic, it was difficult to get. It is provided to homeowners who install on-grid solar systems in their homes. After submitting the entire installation documentation on their portal, the state DISCOM company will deliver it.
8. Solar Panel Subsidy in Andhra Pradesh
The government announced a 40% subsidy for systems up to 3 kW, but because of the pandemic, getting funding was problematic. Residential homeowners who install on-grid solar systems are eligible for the incentive. After submitting the entire installation documentation on their portal, the state DISCOM business will offer it.
9. Solar Panel Subsidy in Jharkhand
The government announced a 40% subsidy for systems up to 3 kW, but because of the pandemic, getting funding was problematic. Residential homeowners who install on-grid solar systems are eligible for the incentive. After submitting the entire installation documentation on their portal, the state DISCOM business will offer it.
10. Solar Panel Subsidy in Bihar
The government announced a 40% subsidy for systems up to 3 kW, but because of the pandemic, getting funding was problematic. Residential homeowners who install on-grid solar systems are eligible for the incentive. After submitting the entire installation documentation on their portal, the state DISCOM business will offer it.
Advantages of Solar Subsidy
In this process, three parties are involved: DISCOMS, Registered Vendors and customers.
Customers are pleased because they receive financial assistance, the registered vendor is pleased because they gain new customers, and the government is pleased because it is one step closer to achieving its solar target.
How does DISCOMS benefit from solar subsidy?
Residential power usage decreases, allowing them to provide more in the commercial sector. Commercial locations, we know, use more electricity than residential areas and pay higher rates as well.
How Registered Vendors benefit from solar subsidy?
A broader consumer base and more business benefit channel partners. Even though he desperately wants the subsidy, it is difficult for the average person to figure out how to receive it. The channel partner enters the picture at this point. He makes every effort to collaborate with the customer and government departments to speed up the process of obtaining a subsidy for the consumer.
Conclusion
This was the solar subsidy process in India for 2024. Without a subsidy, the typical cost of installing a grid-connected rooftop PV system in 2024 should be around Rs 50,000.
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