India is a blessed country due to its tropical location, the country receives maximum time with clear skies around the year. Solar power systems can help people harness this enormous source of energy for their domestic and commercial activities. It is an eco-friendly and profitable alternative to traditional thermal electricity.

Why is subsidy needed?

Despite its advantages, solar energy is still apprehended by many. The reason is the huge upfront charges required to install it. A solar power system is a complex assemblage of several machine parts. These machine parts are costly, and together they pile up into a relatively high installation cost.

The government understands that it is difficult for the common person to afford such dear investments. Thus, it came up with tax rebates and solar power grants on solar power to make it affordable.

What do you get in a subsidy?

The government of India, along with State Nodal Agencies, offers solar power grants and other incentives. The Centre covers around 30% of the benchmarked installation charges all over the country.

The government subsidy for solar power may even go up to 70% on solar power in states like Uttarakhand, Himachal Pradesh, Sikkim, Jammu, and Kashmir Lakshadweep. The subsidy, however, is applicable only on installation in residential and institutional premises and not industrial units.

Some important points to keep in mind:

    1. At least 100 sq. ft. of rooftop space is required for solar system installation.


    1. The average cost of installation without subsidy is ₹60,000-₹70000. After government grants in solar power, it is reduced to ₹42000- ₹49000.


  1. A generation-based incentive can be availed by generating at least 1100 kWh – 1500 kWh per year.

Additional benefits

Solar power systems, in addition to an eco-friendly option, provides several other benefits-

    • Installing rooftop PV systems allows candidates to apply for priority sector loans of up to 10 lakhs from national banks.


    • Generation-based incentives of ₹2 per unit of electricity generated with a solar PV system.


  • The surplus electricity can be sold back at the cost of tariffs set by the authorities.

Have you read: Solar Financing Options: How To Find The Best Solar financing?

How to apply for a subsidy

    1. You need to contact the respective state government agency of renewable resources.
    2. The concerned authority will visit your place for ground inspection.
    3. Once assessed and approved, they will outline the fee structure and installation process.
    4. After installation, the electric provider will visit your site for inspection.
    5. Once convinced, he would grant his approval for a government subsidy for solar power.
    6. The customer may also talk about tariff details about selling surplus energy.
Demerits of solar power subsidy

Everything comes at a cost, and subsidy results in certain compromises, too like:

    • Less choice:

Solar subsidies are limited to some government-affiliated manufacturers. High names like Microtek, Luminous, Exide, etc., are not covered by subsidies.

    • Less warranty:

The warranty is reduced significantly. You may need to change the inverter every 5 years.

The government of India provides a good number of incentives and elaborate subsidy schemes to help its citizens exploit solar power. We can use our discretion to use this eco-friendly and profitable source of energy.

So get your solar products along with subsidy if you want, today. Choose the best brand of India, Waaree Energies Ltd. for best quality solar products.

You can also read: Is it true that the life of Solar Panel is 25 years?

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