Guide to Solar Subsidies in India

Solar Panel Subsidy In India - A Comprehensive Guide

Guide to Solar Subsidies in India

All of your household appliances are most definitely driven by energy from the state power grid, which can be inconsistent and environmentally damaging. Wouldn't it be pretty awesome if you could produce your own power using a solar panel while also significantly lowering your carbon footprint?

With soaring monthly energy costs and limited fossil fuel reserves, a solar panel and solar inverter are the technology of the future. Despite the fact that many people appreciate its relevance, many are hesitant to adopt solar panels due to the high initial expenses.

And here is when India's government comes into play. They are incentivizing residents to install solar panels by providing solar subsidies.

What is the solar subsidy in India?

The solar subsidy is a government of India program intended to bring clean and green power, such as solar electricity, to every corporate and private sector in the country. This will ultimately lead to significant savings while also effectively removing your increasing reliance on the government grid.

By March 31, 2022, the MNRE (Ministry of New and Renewable Energy - Central Government) has set an ambitious target of installing 227 Gigawatt (22,70,00,000 kilowatt).

To accomplish that goal, the government is assisting solar energy in a number of different ways. A total of Rs.5,000 crore has been reserved by the government for solar subsidies exclusively.

What is the amount of Solar Subsidy accessible?

According to the MNRE's latest revelation, all consumers are eligible for benefits for a 30 percent to 90 percent discount on the initial capital investment required. Nonetheless, how much of a subsidy you will obtain on solar panels is governed by the wattage and style of the solar system you install.

Given below is an assessment of how much money you'll earn for installing a solar system of a certain capacity.

  • 1kW Solar System - 3kW Solar System = 40% Subsidy

  • 4kW Solar System - 10kW Solar System = 20% Subsidy

  • More than 10kW Solar System = No Subsidy

Who are eligible to enjoy the benefits of the subsidy?
  • Residential homes (including individual homes and large apartments) are eligible to apply for the subsidy, but not industrial and commercial buildings.

  • Only Grid Connected Solar Systems are qualifying for a solar subsidy (Without Battery System).

  • NPOs (non-profit organizations), including old age homes, orphanages, and other similar organizations, are also qualified.

  • The subsidy program is open to farmers who intend to install solar pumps in their farms.

  • Solar subsidy plans are open to educational institutions such as schools, colleges, and universities.

How many states provide solar energy system subsidies?

Solar system subsidies are available in almost every state of India.

What are the positives of obtaining a subsidy?

The client is delighted because he received financial assistance, the channel partner is glad because he acquired a new customer, and the government is content because it is one major step towards achieving its photovoltaic target.

  • When you install a solar panel system under a subsidy program, the solar installation firm will give a 5-year performance guarantee, after which you will be accountable for the solar system on your own.

  • Because installing a solar system is such a significant expenditure, financial aid encourages individuals to do so and alleviate part of the financial strain.

  • A wider clientele and more business benefit channel partners. Even though someone genuinely wants the subsidy, it is challenging for the regular individual to figure out how to obtain it.

The channel partner comes into the equation at this stage. He makes every effort to collaborate with the customer and government authorities in order to accelerate the entire process of obtaining a subsidy for the client.

  • Residential power usage lowers, allowing DISCOMS to provide more in the corporate sector. Commercial locations, we understand, use more electricity than residential neighborhoods.


We all are very well aware that solar energy is a sustainable and pure form of energy that actually lowers our dependency on natural assets like water and coal.

We must consider taking advantage of the available subsidies and install a solar panel backed by a solar inverter. We believe in a long-term future powered by renewable energy with the best solar inverter and solar panels. Please contact us if you have any questions or would like to have a free quotation.