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All you wanted to know about Solar Subsidies in India – Solar Rooftop, Solar Water Pump sets and Solar Lights

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Solar Subsidy in India

I have always received many queries from my readers regarding the availability of solar subsidy in India. Though solar energy prices are becoming comparable to the commercial electricity prices in many states of India, it still commands a large upfront spend initially. The government of India had set up JNNSM (Jawaharlal Nehru National Solar Mission) in January 2010 to promote solar energy. In this article I am covering subsidies for solar rooftop panels, solar water pump sets and solar lights. Hope it will help the readers to some extent.

Solar Subsidy For Rooftop Solar

The Government will provide a 30% capital subsidy for rooftop solar installations to residential, government, social and institutional segments only. This subsidy is not available for commercial and industrial customers because they can avail other benefits like accelerated depreciation, tax holidays, excise duty exemptions. India increased its rooftop budget by a significant 730% in January this year. The subsidy level could reach as far as 70% for states such as Sikkim, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, Lakshadweep and Andaman & Nicobar.

These subsidies will be made available through various state government schemes, Solar Energy Corporation of India (SECI) and other financial institutions (like State Bank of India). It is a much needed step by the Government to promote rooftop solar installations in India.

Solar Subsidy for Solar Water Pumps

The Government also provides a 40% subsidy on capital costs of a solar PV system (SPV), subject to a maximum amount. For availing subsidy on a solar system, it is important to select a supplier who is approved by the Ministry of New and Renewable Energy (MNRE). Only the specified PV systems are eligible for the subsidy. This subsidy scheme is available through NABARD.

The subsidy scheme for solar water pumps differs from state to state. In Rajasthan a farmer typically pays just 14% of the cost of a solar water pump. 30% subsidy is provided under JNNSM scheme and upto 56% is provided by Rashtriya Krishi Vikas Yojana and MNRE. The prices of these pump sets are also coming down each year. The Indian state of Kerala will also distribute 1,380 pumps of 3HP capacity at a subsidy of 30%-35%.

Solar Subsidy for Solar Home Lighting

Subsidy available for solar lights in India:

subsidy

Source

Since most part of the cost is being borne by the government as subsidy, it goes without saying that there would be red-tapism involved in India. Since the funds are limited, a limited number of these solar products are being given out to the farmers/ customers. It is a process of selection by the government whom they wish to grant subsidy, hence it does not seem to be a very lucrative offer in a large populated country like India. All being said, the government of India is trying hard to promote solar in India, however I wish the process was a little more transparent.

Please feel free to share your story of availing subsidy from the government, or add on points that have not been covered in this article in the comments section. Or you can also email us at greenworldinvestor@gmail.com. This way the community at large will benefit.

PG

Sneha Shah

I am Sneha, the Editor-in-chief for the Blog. We would be glad to receive suggestions, inputs & comments on GWI from you guys to keep it going! You can contact me for consultancy/trade inquires by writing an email to greensneha@yahoo.in

15 Responses so far | Have Your Say!

  1. Shankar

    Goodbinfo

  2. Namya

    Hi,
    I am an individual and looking for options to install rooftop solar home lighting system. I belong from a place of Jharkhand where due to forest area there is a lot of electricity problem. My requirement is to run a water motor of 1HP and recharge my InfraTubular battery set. Please suggest how you can be helpful to me.

  3. Sneha Shah

    Hello Namya,

    Please check ur inbox. Thanks for reading my blog and contacting me

  4. Cyrus Rupa

    Future of Indian economy belongs to Solar energy.
    We lost many Sun power years.
    Instead of hydro,coal based plants & nuclear etc this Is very safe & eco friendly too.
    Great scope here.

  5. VISHAL

    HI SNEHA . I AM FROM TELANGANA STATE .. I WANT TO SOLAR POLE IN MY PLANT .. CAN U HELP FRO PRICE AND SUBSIDY
    PLS CONT THIS NO
    8466973950

  6. vishal

    Hi sneha, i leave in indore Madhya paradesh 452001 . I want purchase home lighting solar syastem please provide me all data like price , subsidi and bank lon
    Please contact
    9753335025

  7. Sneha Shah

    Hi Vishal,

    Thank you for reading my bloag and writing to me. So are you looking at buying solar lights or solar system to power your lights at home – BR

  8. khilan shah

    hi sneha shah, i leave in bhiwandi city near thane , i am shifting at new home and the benefit is that is on 9th floor so maximum sunlight on floor, so i was thinking to put solar home lighting system TL 300 so what is the procedure of installation and subsidy, and from where i will get this solar panels?

  9. Sneha Shah

    Dear Khilan,

    As far as i know you can avail a bank loan in this reagrd and submit the papers for subsidy through your dealer. The dealer should be MNRE certified too. But I am not sure if it is allowed in urban areas. For this you need to get in touch with solar light supplier accrediated with MNRE. Thanks!

  10. Jay

    Hi Sneha, What’s the subsidy rate for Solar Water Pumps in Gujarat and Maharashtra?.

  11. Sneha Shah

    Dear Jay,

    The Government provides a 40% subsidy on capital costs of a solar PV system (SPV), subject to a maximum amount. For availing subsidy on a solar system, it is important to select a supplier who is approved by the Ministry of New and Renewable Energy (MNRE). Only the specified PV systems are eligible for the subsidy. This subsidy scheme is available through NABARD.

    The subsidy scheme for solar water pumps differs from state to state. In Rajasthan a farmer typically pays just 14% of the cost of a solar water pump. 30% subsidy is provided under JNNSM scheme and upto 56% is provided by Rashtriya Krishi Vikas Yojana and MNRE.

  12. Jayesh shah

    Want to know more about SOLAR LIGHTING SYSTEM…. As I m now in LED LIGHTING INDUSTRIES….. Please inform more about it….

  13. Lakshmi priya.N

    Hai ,i am doing Ph.d., in solar send me articles regarding solar energy products

  14. r singh

    see articles related to PV solar power systems. there is plenty of information related to it