In the past few years, India has witnessed an increasing focus on the development of solar energy in India and its adoption in residential and commercial sectors. This is due to a multitude of reasons like limited conventional energy reserves, its local environmental and social impact, energy access, and tackling the challenge of climate change.

These reasons coupled with solar panel government subsidy have fuelled the demand for solar rooftop installation in residential sectors, recently. Solar PV technology is an attractive option that comes with 25-30 years of life and promotes the idea of zero fuel costs and reduced carbon footprint.

In this blog let’s look into various solar panel government subsidy in India and solar panel subsidy schemes that are relevant to the residential sector.

What is a solar panel government subsidy?

A solar panel government subsidy is an incentive by the government that gives a financial boost for solar panel installation in the household sector. These solar panel subsidy schemes can take the form of tax incentives, rebates, or grants, to make solar power accessible and cost-efficient for businesses and households alike. This will benefit them to reduce some a mount from their initial investment which can be a motivator to take steps to install solar solutions to meet the energy needs.

Solar panel subsidy in India for on-grid solar for domestic consumers

The Government of India, through the Ministry of New & Renewable Energy (MNRE PM Surya Ghar), provides solar panel subsidy schemes as Central Financial Assistance (CFA). These subsidies are given as a percentage of the benchmark price set for each on-grid project capacity. Notably, CFA subsidies are currently available only to domestic consumers.

It's important to highlight that the solar panel government subsidy is limited to the lower value between the MNRE PM Surya Ghar's determined benchmark price and the tender-discovered price (specific to each state). Here are the benchmark prices and central financial assistance/subsidies for on-grid project capacities per kWp:

For capacities above 3kW Solar Panel Systems on-grid projects, the solar panel government subsidy is available for domestic consumers, but limited to the first 3 kWp only.

Savings from solar per 2 months

Please note that solar production and savings etc. are completely dependent on solar power absorption and weather conditions, and hence no claims or guarantees can be made for the actual production in the actual site conditions.

Type of solar panel government subsidy in India

1. PM Surya Ghar Muft Bijli Yojana

This solar panel government subsidy is administered by national and state agencies. It aims to promote rooftop solar installations for households. DISCOMs will facilitate net meters, conduct inspections, and support the solarization of government buildings. The maximum amount of subsidy under this scheme is Rs.78,000.

2. PM-KUSUM Scheme

It was launched in 2019 and expanded in 2024. This solar panel government subsidy initiative aims to provide for farmers and plans to add 30,800 MW solar capacity. It includes decentralized solar power plants, standalone agriculture pumps, and solarization of grid-connected pumps.

3. New Solar Power Scheme under PM JANMAN

Focused on PVTG habitations, this solar panel government subsidy seeks to electrify 1 lakh un-electrified households and multi-purpose centers with solar systems. CFA support is limited to Rs. 50,000 per un-electrified household for Solar Mini-Grids and is limited to Rs. 1 lakh per Multi-Purpose Center (MPCs).

These initiatives collectively enhance the landscape of offering solar panel subsidy in India, promoting sustainable energy across diverse regions.

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FAQs:

1. Is there a government subsidy for solar panels in India?

Yes, solar panel government subsidy in India is available for households and farmers both.

2. Is there a subsidy for commercial solar panel installations under the Indian government's solar scheme?

Yes, commercial solar installations in India are eligible for subsidies under the Grid-connected Rooftop Solar Scheme (Phase-II). The subsidy covers 40% for the first 3 kW and 20% for additional capacity up to 10 kW.

3. What is the cost of 4kW solar panel in India with subsidy?

The average price of 4kW solar panel in India with subsidy will come around INR 244000. Please note the cost differs from vendor to vendor.

4. How can someone apply online to receive the PM Surya Ghar Yojana subsidy?

To apply for the Rooftop Solar Scheme or the PM Surya Ghar Muft Bijli Yojana visit the official website of PM Surya Ghar Muft Bijli Yojana and click on the ‘Apply for Rooftop Solar’ button.