What Are Solar Incentives in India?
Solar power is growing fast in India, and so are the financial benefits of switching to it. From government subsidies to tax breaks, there are several solar incentives in India to help homeowners, farmers, and industries make solar energy more affordable. If you’re considering installing solar panels, these programs can reduce your costs and help you get faster returns.
Let’s explore the major incentives available and how you can take advantage of them.
1. Government Solar Subsidies in India
One of the biggest solar incentives in India is the national subsidy program provided by the Ministry of New and Renewable Energy (MNRE). Under this scheme:
- Homeowners can receive up to 40% subsidy for solar systems up to 3KW.
- Installations between 3KW and 10KW are eligible for a 20% subsidy.
There are also solar government programs like PM-KUSUM that help farmers install solar water pumps or grid-connected systems.
2. Solar Power Financing Options in India
Besides subsidies, India offers various financing methods to make solar more affordable.
a. Solar Loans from Banks
Several banks provide solar-specific loans with attractive interest rates. These loans are designed to help you cover the solar panel cost and installation without putting pressure on your savings.
b. EMI and No-Cost EMI Options
Morca also partners with financial institutions to offer easy EMI and no-cost EMI options to customers. This way, you can install a solar-powered water system or rooftop setup and pay gradually, turning your energy savings into affordable monthly payments.
3. Tax Benefits for Solar Installations in India
Businesses and industries in India can claim tax incentives for solar, such as:
- Accelerated Depreciation: Businesses can depreciate their solar system at 40% per year, reducing taxable income.
- GST Benefits: The solar panel installation sector attracts a reduced 5% GST rate.
This makes solar power a highly attractive investment for companies looking to reduce operating costs while contributing to sustainability.
4. State-Wise Solar Incentives
- Maharashtra: Additional financial aid for farmers.
- Gujarat: The Surya Urja Rooftop Yojana offers extra discounts for homeowners.
- Rajasthan & Haryana: Extra subsidies through state-run solar programs for farmers and residents.
- Kerala & Tamil Nadu: Financial assistance for both grid-connected and standalone systems.
Each state’s solar power incentives differ slightly, so Morca helps clients check eligibility for both national and local programs.
5. Government Schemes for Solar Rooftops
Key solar panel programs include:
- National Rooftop Solar Program (by MNRE).
- PM Surya Ghar Muft Bijli Yojana: Aiming to install free solar panels for economically weaker households.
- State Rooftop Solar Programs: Vary from state to state.
6. Benefits of Solar Energy Incentives in India
- Lower Installation Costs: Subsidies and tax credits reduce upfront costs.
- Faster ROI: With savings on both installation and electricity bills, solar becomes profitable faster.
- Environmental Impact: More homes and businesses using solar power = fewer carbon emissions.
- Increased Property Value: Homes with solar panels often fetch better resale prices.
- Better Cash Flow for Businesses: Industries can redirect energy cost savings toward operations and expansion.
7. How to Apply for Solar Incentives in India
- Visit your state’s DISCOM or national MNRE portal.
- Register and upload documents like ID, electricity bill, and bank details.
- Choose an approved vendor, like Morca, for installation.
- Installation & Inspection: Once your system is commissioned, you can claim your solar panel tax credit or subsidy.
- Subsidy Disbursement: The funds are credited directly to your bank or adjusted in the invoice.
8. The Future of Solar Incentives in India
The Indian government plans to expand solar incentives in India as part of its green energy mission. New initiatives, such as the PM Surya Ghar Yojana, aim to further increase solar adoption at the residential level.
Additionally, there are ongoing discussions to improve net metering policies and offer free solar panels to select households in rural regions.
Key Takeaways:
- Solar incentives in India include subsidies, tax benefits, and low-interest loans.
- Homeowners and businesses can save up to 40% on system costs.
- States like Gujarat and Maharashtra offer additional benefits.
- Tax credits like accelerated depreciation help businesses save more.
- Morca provides full support to access government schemes and install solar systems efficiently.
Conclusion
Switching to solar has never been easier thanks to the wide range of solar incentives in India. From national subsidies to state-run programs and financing options, these initiatives make solar power accessible for homes, farms, and industries alike. Partner with Morca and enjoy a smoother journey to cleaner, cost-effective energy.
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