At a Glance
- Solar Subsidies’ Vital Role
- Who Qualifies?
- The Subsidy Claim Journey
- Updated Subsidy Structure
- State-specific Solar Subsidies
- PM Suryodaya Yojana
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
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 three KWp has been elevated from the previous Rs 14,588/kWp to Rs 18,000/kWp. Furthermore, for projects ranging from three KW to 10 KW, the assistance has seen an increase from Rs 7,294/kWp to Rs 9,000/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:
|Applicable subsidy for General Category States/UTs
|Applicable Subsidy for *Special Category States/UTs
|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
|RWA/GHS (Up to 500 kWp)
|Rs. 7294/- per kW @ 10 kWp per house
|Rs. 8831/- per kW @ 10 kWp per house
|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
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. Access to rooftop solar portals for electricity distribution companies can be obtained at: DISCOM Portal Links
PM Suryodaya Yojana
The introduction of the PM Suryodaya Yojana underscores India’s commitment to achieving its national objective of securing 50 per cent of its cumulative power capacity from non-fossil fuel sources by 2030. Prime Minister Narendra Modi announced the PM Suryodaya Yojana subsequent to the Ram temple ceremony in Ayodhya, outlining a dedicated focus on the installation of rooftop solar systems in one crore households. Building on this announcement, Union Minister of MNRE, RK Singh, revealed a substantial incentive by declaring a 60% subsidy from the central government for solar rooftop installations under the newly proposed PM Suryodaya Yojana. Notably, this subsidy is set to increase to 70% for consumers in hilly, north-eastern states, and union territories, demonstrating a targeted approach to address specific regional needs. The current solar subsidy for all consumers stands at 40% of the project cost, making the proposed increase a significant boost to encourage widespread adoption of solar technology, especially in challenging terrains.
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 4 GW of rooftop solar systems by 2024, 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.