Solar Panels Subsidy by Central Government and Application Process

Environment Safety
, ,
1

The central government, through the Ministry of New and Renewable Energy (MNRE), offers financial assistance to make solar panel installations more affordable. Here’s a detailed look at the subsidies available as of 2024:

PM Surya Ghar: Muft Bijli Yojana, a government program in India providing free electricity through solar panels.
PM Surya Ghar: Muft Bijli Yojana, a government program in India providing free electricity through solar panels.1031×720 86.4 KB

Central Financial Assistance (CFA)

The MNRE provides subsidies under the National Portal for Rooftop Solar program. This initiative aims to encourage both residential and institutional adoption of solar energy by reducing the financial burden.

For Residential Sector:

  • Individual Households:
    • Up to 2 kW: A subsidy of ₹30,000 per kW is provided.
    • 2 kW to 3 kW: A subsidy of ₹18,000 per kW for additional capacity up to 3 kW.
    • Total Cap: For systems larger than 3 kW, the total subsidy is capped at ₹78,000.
Example

If a household installs a 4 kW solar system, the subsidy would be:

  • ₹30,000 per kW for the first 2 kW.
  • ₹18,000 per kW for the next 1 kW.
  • Total subsidy = ₹78,000 (as it is capped).
  • Group Housing Societies/Residential Welfare Associations: For common facilities, including EV charging stations, a subsidy of ₹18,000 per kW is available up to a capacity of 500 kW (at the rate of 3 kW per house). This includes individual rooftop plants installed by residents within the GHS/RWA.

Suitable Rooftop Solar Plant Capacity for Households:

  • 0-150 units: 1 – 2 kW
  • 150-300 units: 2 – 3 kW
  • >300 units: Above 3 kW

For Institutional Sector:

  • Institutions: Schools, hospitals, and other non-commercial entities can avail of a 20% subsidy on the benchmark cost for installing solar PV systems.

Implementation and Process

Subsidy implementation is managed by State Nodal Agencies (SNAs) and other designated agencies. The process involves:

  1. Application: Submission to the SNA or designated agency.
  2. Approval: Review and approval based on eligibility.
  3. Installation: Execution by empaneled vendors.
  4. Inspection: Post-installation inspection for compliance.
  5. Disbursement: Subsidy disbursement to the applicant or vendor.

Applying Process

To apply for the subsidy, follow these steps on the National Portal for Rooftop Solar:

  1. Register/Login: Create an account or log in to the portal.
  2. Submit Application: Complete the application form with the necessary details.
  3. Approval and Installation: Upon approval, select an empanelled vendor for installation.
  4. Inspection and Subsidy Release: After installation, an inspection will be conducted and the subsidy will be disbursed accordingly.

Additional Incentives

  • Net Metering: Allows consumers to sell excess electricity back to the grid.
  • Solar Loans: Reduced interest rate loans supported by government schemes.
  • Tax Benefits: Includes accelerated depreciation and tax exemptions.

For the latest information and detailed procedures, call the toll-free helpline number 15555 or visit the National Portal for Rooftop Solar.

1 Like