When we discuss solar energy, we think about the solar system’s pricing, and then after the subsidy scheme of solar panels. Let’s today know about the government solar subsidy in India. In this article, we will discuss.
- How can I get a subsidy on solar?
- Where can I apply for a solar subsidy?
- Who is the right person for this scheme?
- How much can I get the subsidy amount?
What is the meaning of Solar Subsidy?
We know that Solar Energy is free & clean energy, reducing the dependency on natural resources, such as Water and Coal. The government wants to install solar power in each house through which each home’s roof will produce self-energy. Government supports financially to install solar energy in residential homes.
Why government gives Solar subsidy?
As per discussion with solar industry experts, the government started this scheme to promote solar in residential rooftop sectors, but Solar Subsidy gradually utilities day-by-day due to its policy & procedures in 2021. It has no more clarity about this.
There are three parties involved in the process: 1. Customers, 2. Channel Partners, and 3. DISCOMS.
#1. Customer Benefits
The solar subsidy in India is only available on Residential Homes (Individual Homes & Big Apartments), not commercial and industrial sectors. A solar subsidy is only public on Grid Connected Solar System (Without Battery System). As installing a solar system is a considerable investment, the financial assistance motivates people to invest and burdens their shoulders.
- Subsidy Amount – Up to 3kW – 40% Subsidy,
- 4kW to 10kW – 20% Subsidy &
- More than 10kW – No subsidy
Homeowners can only install a solar system and claim subsidy through the state DISCOM. They will share customer details and register the nearest channel partner.
This subsidy is not available for commercial and industrial customers because they can benefit from accelerated depreciation, tax holidays, and excise duty exemptions.
#2. Channel Partner Benefits
Channel Partners benefit from a more extensive customer base and more business. It is difficult for an ordinary person to figure out the processes of getting the subsidy though he very much desires it. It is now that the channel partner comes into the picture. He tries to work with the customer and the government departments and expedite getting a subsidy for the customer.
#3. DISCOMS Benefits
Power consumption demands reduce in residential sectors, and they can give more in a commercial area. We know that Commercial areas need more electricity than residential.
The customer is happy as he got his financial aid. The channel partner is satisfied as he got a new customer. The government is pleased, too, as it is one step closer to its solar target installation.
Let’s see some demerits of the subsidy scheme:
#1. Customer’s Demerits: I think there are two significant demerits if we install a solar system through a government subsidy scheme.
- Less Warranty: If you install a solar system through a government solar subsidy scheme, you will get a full system warranty is five years. You will change an inverter after 5 – 7 years.
- No Option for Top Brands – If you install a solar system through this scheme, you cannot force desired solar panel & inverter brands, such as Loom Solar, Luminous, Microtek, and Exide Enphase, Solar Edge, etc.
#2. Channel Partner’s Demerits: As per discussion with industry experts, they face the following problems:
- Big Investment
- Not Assurity of Returning Subsidy Amount from DISCOMs after giving subsidy amount
- System Service & Warranty for next five years
Solar Panel Subsidy Cost Estimation
Both central and state offer subsidy schemes to people for installing solar rooftop systems. The central government pays a 30% subsidy for these systems to conditions in general categories. For particular states like Uttarakhand, Sikkim, Himachal Pradesh, Jammu & Kashmir, and Lakshadweep, up to 70% is given by the central government.
To avail of subsidy, the average cost of installation of rooftop PV system without subsidy should be around Rs 60,000 – 70,000. To avail of generation-based incentives, the customer should generate 1100 kWh – 1500 kWh per year.
A person who is interested in getting a subsidy needs to follow some protocols. He will have to contact their electricity provider (or may even apply online with necessary documentation), who will visit the installation site for a review and give approval. Then the electricity provider calls for inspection. Customers can then avail the subsidy amount.
How to Verify Authorized Vendors/Channel Partners by DISCOMS?
I am sharing few guides to verify authorized vendors/channel partners that you can contact them. You have to visit your DISCOM websites, search a trusted channel partners list in your area and then get them.
Solar System Cost as Per MNRE Cost
The government has revised the solar system price every year. We are sharing with you for your reference. Most probably, you will get a similar solar system price through solar subsidy.
To know more about Solar Subsidy in India, you can contact Solar EPC Company in UP for proper guidance.