Solar Subsidy in India 2021

All of your household/industrial appliances are most likely powered by electricity from the state electricity grid, which can be unreliable and harmful to the environment. Wouldn’t it be fantastic if you could generate your electricity using solar panels while also lowering your carbon footprint? In India 2021, every state is providing a solar subsidy.

The Indian government has initiated a project called Solar Rooftop Power Plant to save energy and resources for future generations. We all know that solar energy is not widely used in the home and commercial sectors for obvious reasons. As a result, the Center administration recognized the issue and developed the MNRE solar subsidy plan for the domestic sector, which provides 40% up to 3 KW and 20% for the remaining above 3 KW up to 10 kW.

In addition, farmers in hilly states like Himachal Pradesh, Uttarakhand, and Jammu, and Kashmir can get a 70% subsidy on water pumping systems and a 90% subsidy on irrigation systems.

What is a solar subsidy?

The Indian government has made several attempts to boost the usage of solar in both residential and commercial sectors. To make this campaign more effective, the government has launched a solar subsidy program that will provide financial assistance to anyone who wishes to install a solar solution. This self-consumption subsidy allows you to save anywhere from 40% to 50% on your installation costs.

Anyone who wishes to put solar panels in their home can apply for these grants, which are mostly for installations in single-family homes or neighborhood communities.

Why Solar Subsidy?

With India’s economy growing at a breakneck pace and people’s living standards rising, the net demand for power will skyrocket.

Several international conventions bind the government to treaties. It is working to limit the use of carbon-rich fuels in the energy sector. It is for this reason that the general public is being pushed to use solar energy in huge numbers in their homes.

What better way to do this than to subsidize the expenses of panel purchase and installation? Since then, there has been a slew of tax cuts and pledges from the government aimed at assisting people in making the most of clean energy.

Who can get the subsidy on solar?

Type Of Residential Sector Solar Subsidy
Residential Sector ( Up To 3 KW Capacity ) 40% Of The Benchmark Cost
Residential Sector ( Above 3KW Capacity And Up To 10Kw Capacity ) 40% Up To 3kw Plus 20% For Remaining Above 3KW And Up To 10kW
Group Housing Societies / Residential Welfare Associations (GHS/RWA) etc. For Common Facilities Up To 500kw (@ 10 KWP Per House ) 20% Of The Benchmark Cost

Without subsidies, the average cost of installing a rooftop PV system is roughly Rs 60,000-70,000. After taking advantage of the subsidy, people will only have to pay Rs 40,000-50,000 to install a rooftop PV system. The goal of this solar project is to promote alternative green energy that is nearly 90% cheaper than the electricity provided by the Electricity Department.

What are the documents required to apply for Solar Subsidy?

Soft copy of Identity Proof to be uploaded Online on DISCOM Website.

  • Photo
  • Aadhaar Card
  • PAN Card
  • Electricity Bill

How can you get a subsidy?

The households need to register their details on their DISCOM partners and install the system. One big disappointment of using this subsidy is you only get to choose from a select few panels.

The government has partnered with some manufacturers to make them cheaply available for the commoners, and you can only choose from among them.

And you can only claim a performance warranty of 5 years. To put this in perspective, most panels have a lifespan of 25+ years.

You can apply for the solar panel installation both online and offline as well, or you can contact the respective power distribution company (DISCOM) in your state.

Step 1: Submit an Application for Solar Connection, there is two way to apply – Online & Offline. Some states have developed an online platform to get a solar connection, but some states are still working on window work.

Step 2: Contact the Power Distribution Company (DISCOM)

Solar Subsidy in India

With the growing number of solar panel installations in India, here are some essential points to note about the subsidy scheme in different states, along with some necessary details.

Solar Subsidy in Uttar Pradesh, 2021

The state government has promised a Rs 15,000 per kW subsidy for rooftop solar systems that would be sold to residential customers. By 2022, the state government wants to generate 10,700 megawatts of solar energy, including 4,300 megawatts from rooftop solar projects. In February, the total installed solar power capacity in Uttar Pradesh was 1,095 MW, included 146 MW of solar rooftop capacity.

For group housing society projects with a capacity of 10 kW to 100 kW, the center will provide a 40% discount for the first 3 kW and a 20% subsidy for the rest. The home sector may install RTS plants with capacities greater than 10 kW, but the central subsidy will be limited to 10 kW.

Here are some details regarding the subsidy in the state.

  • State subsidy amount- Rs. 15,000-20,000 Up to 10kW
  • Rooftop solar system size- Up to 10 kW

Solar Subsidy in Kerala, 2021

Kerala has aimed to turn the homes into power stations by installing solar panels in every house possible. The center would give a 20% subsidy for group housing society projects and residential welfare organizations with a capacity of up to 500 kW. If a customer desires to build the plant in its entirety, they can receive a subsidy of up to 40% of the plant’s cost.

  • Central subsidy Amount – 40% for the first 3kW and 20% on remaining 7kW
  • Size of the Rooftop Solar System – Up to 10kW
  • Price for the customer – 12% of capital cost, if monthly consumption is 120 units, 20% for 150 units, and 25% for 200 units

Solar Subsidy in Maharashtra, 2021

In Maharashtra, the solar subsidy is done by the MEDA, helping people get easy installations of solar panels by assisting them financially over subsidy. Here is some information related to the installation.

  • State subsidy amount – 30% of the standard cost
  • Rooftop solar system size – Up to 10 kW

Solar Subsidy in Haryana, 2021

Haryana (Department of Renewal Energy) has initiated an electricity-saving initiative named Solar Rooftop Power Plant to preserve and resources for future generations.

As a result, the Haryana government recognized the issue and announced a solar subsidy of 30% of the benchmark cost. In addition, in hilly regions like Himachal Pradesh, Uttarakhand, and Jammu, and Kashmir, farmers can get a 70% discount on water pumping systems and a 90% subsidy on irrigation systems.

  • State Subsidy amount- 30% of the standard cost
  • Rooftop solar system size- Up to 10 kW

Solar Subsidy in Bihar, 2021

Bihar government has joined this green venture and provides the necessary subsidy over solar panel installation in the state. Here is some information you should know before installing the solar panel.

  • State Subsidy amount- 25% subsidy over the installation cost
  • Rooftop solar system size- minimum 1kW

Solar Subsidy in Gujarat, 2021

In Gujarat, the solar subsidy is done by the Gujarat Energy Development Agency (GEDA), helping people get easy installations of solar panels by assisting them financially over subsidy. Here is some information related to the installation.

  • Central government offers a 30% subsidy on the total cost of solar panels
  • Government offers a subsidy of Rs. 10,000/KW in addition to that offered by the central government to increase our state’s solar installation
  • The maximum subsidy given under the residential rooftop solar project scheme in Gujarat will be Rs. 20,000
  • The total amount to be borne by the customer will be the original cost less than Rs. 20000 per KW

Solar Subsidy in Odisha, 2021

In Odisha, the solar subsidy is done by the Odisha Renewable Energy Development Agency (OREDA), helping people get easy installations of solar panels by assisting them financially over subsidy. Here is some information related to the installation.

  • Upto 3KW = 40% solar subsidy on Rooftop Solar
  • Above 3 kW and up to 10 kW= 40% for first 3 kW and 20% for balance capacity
  • Above 10 kW = 40% for first 3 kW and 20% for next 7 kW. No subsidy beyond 10 kW capacity

Solar Subsidy in Madhya Pradesh, Andhra Pradesh, Jharkhand, & Rajasthan 2021

The government announced a 40% subsidy for up to 3 kW systems, but due to the lack of funding during the pandemic, it was difficult to get. It is provided to homeowners who install on-grid solar systems in their homes. After submitting the entire installation documentation on their portal, it is delivered by the state Discom company.

  • State Subsidy amount- 40% subsidy over the installation cost
  • Rooftop solar system size- Up to 3 kW

How Can We Help?

Hope this information about State-Wise Solar Subsidy in India 2021 helps you.

If you are planning to start a solar business or install a solar solution, you can connect with Ornate Solar to get the best assistance with the best prices for solar panels and inverters. We are the official partner of Canadian Solar panels & Renewsys solar panels in India. We are also the official distributor of SolarEdge inverters with DC optimizers, Enphase microinverters, Fronius On-Grid Inverters, and Havells solar inverters in India.

For more information, please give us a call at 011 4353 6666.

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About The Author

Kamini Gupta is the Content Developer at Ornate Solar. She is a solar enthusiast and has worked with several well-known solar brands and experts in India. She is also a poet and a storyteller and has performed in many open mics events.

kamini ornate

About The Author

Kamini Gupta is the Content Developer at Ornate Solar. She is a solar enthusiast and has worked with several well-known solar brands and experts in India. She is also a poet and a storyteller and has performed in many open mics events.