According to the new clean and green energy policy, 2025, Telangana aims to add 20,000 MW to its existing over 11,000 MW renewable energy generation and storage capacity by 2030. The current renewable energy capacity which stands at 11,399 MW includes 7,889 MW of solar energy (excluding distributed renewable energy) and 2,518 MW of hydro energy, among others.

The solar energy sector is witnessing a boom here mainly due to increased awareness of clean energy supported by solar subsidy in Telangana. If you are planning to get rooftop solar installations, this blog serves as a guide on the latest green energy policy 2025, various incentives, and different kinds of solar subsidy in Telangana available for the household sector.

Key Takeaways from Clean and Green Energy Policy, 2025: Incentives and Solar Subsidies in Telangana

The Telangana government is aggressively promoting solar energy adoption. Distribution Companies (DISCOMs) are set to purchase power from 500 kW to 2 MW solar projects developed by various groups, including women's groups, farmers, and cooperatives. The tariffs for this power procurement will be determined by the Telangana Commission.

Comprehensive Project Incentives

Developers of solar projects in Telangana can benefit from a range of incentives. These include deemed non-agricultural status for project land, exemptions from the Land Ceiling Act for smaller projects, reduced water charges, and exemptions from land and electricity duties in specific cases. Additionally, projects are exempt from obtaining pollution control board clearances.

Financial Support and SGST Reimbursements

To further encourage solar development, the government offers significant financial support in the form of solar panel subsidy in Telangana. Certain decentralized grid-connected project developers are eligible for a 100% reimbursement of the State Goods and Service Tax (SGST) on fixed capital investment (FCI). Other solar projects qualify for a 50% SGST reimbursement.

Moreover, a capital subsidy of 25% of the FCI, capped at ₹300 million per manufacturing plant, is available for manufacturing, captive generating, and captive mine projects. This solar subsidy will be distributed over five years. This is a very important part of the solar subsidy in Telangana program.

Rooftop Solar and Targeted Support

Rooftop solar projects in households, houses under the Indiramma Illu program, government educational institutions, and other government buildings will receive a full 100% net SGST reimbursement. This targeted support aims to accelerate the adoption of rooftop solar systems across various sectors. This wide range of benefits makes the solar subsidy in Telangana very attractive.

Calculate Your Solar Savings!

Solar Subsidy in Telangana: Various Incentives by Central and State Government

Under the government initiatives on the central and state level for the adoption of solar systems by households, the solar subsidy programme is of notable importance. Below are the incentives including various solar subsidy in Telangana:

PM Surya Ghar Muft Bijli Yojana

Under the central government CFA, solar panel subsidy in Telangana offers residential consumers to avail of the central subsidy through the National Portal for Rooftop Solar. The subsidy is up to ₹30,000 per kW for systems up to 2 kW, ₹78,000 for a 3 kW system, and a fixed ₹78,000 for systems above 3 kW.

State Initiative: Solar Panel Subsidy in Telangana

Solar subsidy in Telangana by the government is based on system size. For systems between 1-3 kW, the subsidy is ₹20,000, for 3-5 kW it is ₹40,000, and for 5-10 kW, it is ₹60,000. With solar subsidy in Telangana initiative, you will be able to reduce the installation costs of the solar panel systems and more, apart from central finance assistance you also get solar panel subsidy in Telangana under state initiatives.

PM KUSUM Yojana

Under PM KUSUM Scheme, yet another solar subsidy in Telangana, consists of 3 components:

• Component - A:Requires setting up of 10,000 MW of Decentralized Ground/stilt Mounted Grid Connected solar (or) other Renewable power plants setting up of plants from 500 kW to 2 MW will be set up. PPA will be with DISCOM.
• Component - B:Installation of 1.75 million standalone solar agriculture pumps, this will be implemented on a full-fledged basis.
• Component -C:Solarization of 1 million grid-connected agriculture pumps. This will be executed on a pilot basis for 1 lakh pumps.

The government of Telangana has nominated TSREDCO as the implementing agency and Single Window Mechanism for component A.

Under this Programme, MNRE, GoI has allotted the following schemes to Telangana state under Component A – 500 MW of small Solar grid-connected power projects from 500 kW to max. of 2000 kW.

Instruction for registration of on-grid applications for claiming solar subsidy in Telangana

Technical feasibility report from the concerned DISCOMs is mandatory as the Technical feasibility is itself an Application Form for On-Grid rooftop systems

Eligibility:

• 1 kWp to 10 kWp for Domestic Independent House Only. CFA will be 40% for 1-3KWp thereafter 20%
• 1 kWp to 500 KWp for CFA will be 20% for 1-500KWp
• Common meter in Independent House
• Apartment Common Meter.
• Gated Community / Group Housing having single supply for all
• Plant Location mentioned in the application form is to be filled with full address including pin code, where the system is to be installed.
• A colour photograph should be affixed wherever mentioned in the application form and fill all the details of applicant including pin code number, Mobile Number and Aadhar Card number mentioned in the application should be mandatorily filled.

Key Aspects of Solar Net Metering in Telangana

1. 1. Capacity Limit for Net Metering:
   
   • The maximum capacity for net metering is 1 MWp.
   • Voltage Level Limits:
     • Single Phase (240 V): Up to 5 kWp.
     • Three-Phase (415V): From 5 kWp to 75 kWp.
     • High Tension (HT): Above 75 kWp.
     
     
2. 2. Conditions for Installation:
   
   • The solar system capacity should not exceed 100% of the sanctioned load.
   • The cumulative capacity of all solar systems in an area must not exceed 50% of the local distribution transformer capacity.
   
   
3. 3. Ownership Options:
   
   • Existing Consumers: Must have a 3-phase connection with the DISCOM.
   • Self-Ownership:Individuals can own the solar system.
   • Third-Party Ownership:Third parties can own and operate the solar system.
   
   
4. 4. Billing Mechanism:
   
   • Billing Frequency:Half-yearly, in June and December.
   • Unadjusted Credits:Any unadjusted electricity credits will be paid according to rates set by the Telangana State Electricity Regulatory Commission (TSERC).

Going solar with Truzon Solar in Telangana

Truzon Solar has been a trusted name in the solar industry for the last 16+ years and offers solar solutions for residential, industrial, and commercial sectors to transform energy consumption and take a step towards a sustainable future. Truzon Solar can help you avail of solar subsidy in Telangana by guiding you through the application process, ensuring eligibility, and providing expert installation services to maximize the benefits of government incentives for solar power adoption.

Schedule Your Visit Today!

FAQ:

1. Is there any subsidy on solar panels in Telangana?

Solar panel subsidy in Telangana is available and various schemes offer government subsidies. PM Surya Ghar Muft Bijli Yojana, and PM Kusum Yojana are some notable ones.

2. How to apply for a government subsidy for solar panels in Telangana?

Register on the National Portal for Rooftop Solar and submit an application for installation. Once Telangana’s Discom approves your application, you can submit a work completion report and a request for net meter installation. After the net meter is installed and inspected, submit bank account details and a canceled cheque, the subsidy will be disbursed to your account.

3. What is the capacity for solar net metering in Telangana?

The maximum capacity for net metering is 1 MWp.

4. Whether all power consumers are eligible to install solar rooftop systems to avail net metering facility?

Only those consumers who have electricity supply connection from DISCOMs are eligible.

5. How much space on my roof do I need for a solar PV installation?

The grid connected system of 1KW peak power capacity occupies around 100 sq.ft for solar rooftop installation.

6. How much electricity does a PV system output?

For every kW peak power installed on a South facing roof, the system will generate around 1500 to 1700 units in a year. This reduces by around 20% for an East or West facing roof.