At a Glance
- Solar Subsidies’ Vital Role
- Who Qualifies?
- The Subsidy Claim Journey
- Updated Subsidy Structure
- State-specific Solar Subsidies
- PM Surya Ghar Muft Bijli Yojana
- Conclusion
Solar Subsidies’ Vital Role
Subsidies in the MNRE Rooftop Solar Initiative by the Government of India play a crucial role in making solar installations financially feasible for consumers. These subsidies reduce the upfront costs, promoting the widespread adoption of clean energy. By lowering the economic barrier, the initiative accelerates market development, job creation, and technological advancements in the solar sector. It contributes to meeting renewable energy targets, enhances energy security through decentralization, and fosters environmental benefits by reducing reliance on fossil fuels, aligning with global efforts to combat climate change. Subsidies serve as a pivotal tool in realising a sustainable and resilient energy future.
Learn more about MNRE’s Rooftop Solar Initiative in this article: Empowering India’s Sustainable Future with the MNRE Rooftop Solar Project
Who Qualifies?
Central financial assistance (CFA or subsidy) is exclusively applicable to grid-connected solar rooftop projects in the residential sector. Sectors such as government, institutional, social, commercial, industrial, etc., do not qualify for CFA. To access solar subsidies, consumers must install systems exclusively through vendors approved by DISCOMs.
The Subsidy Claim Journey
The process commences with the beneficiary registering on the National Portal, followed by submitting an online application to the DISCOM for technical feasibility. Once the application is approved, the beneficiary enters into an agreement with a vendor registered with the DISCOM and proceeds to install the solar system. The National Portal conveniently provides a comprehensive list of vendors available in the beneficiary’s area. Following the installation, the beneficiary submits an online project completion report for inspection and net-meter installation by the DISCOM. Upon successful completion, the DISCOM approves the project, generating an online commissioning certificate. The final step involves the beneficiary submitting a claim request for Central Financial Assistance (CFA) to the Ministry. Upon verification, the CFA/subsidy is credited to the beneficiary’s bank account within 30 working days. This streamlined and user-friendly subsidy claim process ensures a swift and hassle-free experience for those adopting rooftop solar solutions.
Updated Subsidy Structure
The government has heightened the benchmark central financial assistance allocated for residential rooftop solar projects as part of the solar program, aiming to boost project implementation and offset the increased cost of solar panels. The financial support for installations up to 3 KWp has been elevated from the previous Rs 14,588/kWp to Rs 18,000/kWp. This adjustment underscores the government’s commitment to incentivize and promote the adoption of residential rooftop solar systems by providing more substantial financial backing.
Subsidy structures over the years:
| Sl.no | Year | Plant Capacity | Applicable subsidy for General Category States/UTs | Applicable Subsidy for *Special Category States/UTs |
| 1 | 2023 | Up to 3 kW | Rs. 14588/- per kW | Rs. 17662/- per kW |
| Above 3 kWp- 10 kWp | Rs. 7294/- per kW | Rs. 8831/- per kW | ||
| Above 10 kW | Rs. 94822/- fixed | 114803/- fixed | ||
| RWA/GHS (Up to 500 kWp) | Rs. 7294/- per kW @ 10 kWp per house | Rs. 8831/- per kW @ 10 kWp per house | ||
| 2 | 2024 | Up to 3 kW | Rs. 18000/- per kW | Rs. 20000/- per kW |
| Above 3 kW and up to 10 kW | Rs. 9000/- per kW (subsidy limited to 10 kW capacity) | Rs. 10000/- per kW (subsidy limited to 10 kW capacity) | ||
| RWA/GHS (Up to 500 kWp) | Rs. 9000/- per kW @ 10 kWp per house | Rs. 10000/- per kW @ 10 kWp per house | ||
| 3 | 2026 | Upto 2kW | Rs 30,000 per kW | |
| For additional campacity Upto 3kW | Rs 18,000 per kW | |||
| For systems larger than 3kW | Rs 78,000 total subsidy |
PM – Surya Ghar: Muft Bijli Yojna:
A recent initiative, backed by an investment exceeding Rs. 75,000 crores, seeks to enhance solar power utilization and promote sustainable development. The goal is to illuminate 1 crore households by providing up to 300 units of free electricity each month.
State-specific Solar Subsidies
Subsidy amounts for solar systems vary from state to state, contingent upon the respective state’s policies and subsidy schemes. Additionally, the size of the solar panel plays a crucial role in determining the subsidy amount. Comprehensive information regarding state-specific subsidies is available on the official websites of the respective electricity distribution companies.
PM Surya Ghar Muft Bijli Yojana
The PM Surya Ghar Muft Bijli Yojana is a government scheme that aims to provide free electricity to households in India. Under the scheme, households will be provided with a subsidy to install solar panels on their roofs. The subsidy will cover up to 40% of the cost of the solar panels. The scheme is expected to benefit 1 crore households across India. It is estimated that the scheme will save the government Rs. 75,000 crore per year in electricity costs.
Conclusion
Recognizing solar energy as the future, it is imperative to capitalize on available solar panel subsidies for a seamless transition to sustainable practices. Aligned with the Indian government’s ambitious target of installing 10 million households with rooftop solar systems by fiscal year 2026-27, the urgency to adopt solar energy is evident. However, considering the potential cessation of subsidies once this goal is met, the current period presents a critical window of opportunity. Therefore, delaying action may result in missed benefits. The prudent course of action is to seize the present moment and embrace solar energy to not only contribute to a greener future but also take advantage of the existing subsidies before they potentially phase out.
