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Subsidy On Solar Panel, System, Pump & Other Solar Product
Subsidy on solar is an initiative started by the Government of India so that clean and green energy i.e. solar power can reach every corporate and private sector. This will increase your savings as well as eliminate your dependence on the government grid.
🇮🇳 हिंदी में पढ़े:
Solar energy is a source of immeasurable energy which does not create any kind of pollution. Therefore, the government is engaged in promoting solar power in every way. Solar power today is not only a substitute for our exhausting resources but has become a symbol of our progress.
If you are interested in solar, please read the following information about solar subsidies and other solar benefits.
#1. Govt. Subsidy on Solar System
MNRE (Ministry of New and Renewable Energy – Central Government) has set the target to install 227 Gigawatt (22,70,00,000 kilowatt) by 31 March 2022. To achieve this target govt. is promoting solar power in many ways. The government also sectioned an amount of Rs.5,000 crore for solar subsidies only. Now you can install solar systems with subsidies at low prices. Let us know how much subsidy you will get on the solar system and what will be the procedure to get it.
How much subsidy is available on solar?
According to the latest notification by MNRE, 30% to 90% subsidy on benchmark capital cost is available for all consumers. But actually, how much subsidy you will get on solar panels depends on what capacity and type of solar system you are getting installed.
Let’s know how much subsidy you will get for installing a solar system of which capacity.
- 1kW Solar System – 3kW Solar System = 40% Subsidy
- 4kW Solar System – 10kW Solar System = 20% Subsidy
- More than 10kW Solar System = No Subsidy
#2. Is Subsidy Available on all Systems?
After knowing about solar subsidy rates, now the question arises whether the subsidy is available on all types of solar system. For this, you need to have some knowledge about the type of solar system. So let’s dive into it.
There are three types of solar system:
Now we come to our question of whether the solar subsidy is available on all these solar systems. The answer is, “No”. The solar subsidy is available for on-grid solar systems and hybrid solar systems (without batteries only). As per new policies, there is no provision of subsidies on off-grid and hybrid solar systems.
Please Note:
The solar subsidy policies varies according to state. So please confirm the subsidy rates with your State Solar Department before installing the solar system.
#3. Up To 90% Subsidy on Solar Pumps
For the overall development of India, the government is paying special attention to the agriculture sector. Therefore, the government of India is providing up to 90% subsidy to farmers and others who want to install solar water pump at their places.
But like subsidy on solar system, subsidy on solar water pump also depends on the policy of your state. There are some special provisions for some hilly states like J&K, Himachal Pradesh & UK. However, you can apply to install subsidized solar water pumps in any state. It definitely going to double your profits.
Read in detail: Solar Pump Yojana – Subsidy on solar water pump in India.
#4. Who Can Get Subsidy on Solar?
Perhaps now you must be thinking that am I also eligible for subsidy on the solar system? This question bothers most people because no one gives a direct answer to it. Have a look below to know who is eligible for subsidy on solar in India.
- All residential homeowners are eligible to get govt. subsidy on a solar system.
- Registered societies, multi-store apartments, and cooperative group housing societies are eligible for subsidies.
- Institutes like schools, colleges, universities are eligible for solar subsidy schemes.
- NPOs (non-profit organizations including), old age homes, orphanages, etc are also eligible.
- Farmers who want to install solar pumps in their fields can take advantage of the subsidy scheme.
#5. Procedure to Get MNRE Subsidy
The method of getting subsidy on solar has completely changed now. The way of giving subsidy to you has been made easier by the government. So let’s know what is the right way to subsidize solar panel system.
The government has authorized some solar companies in each state through an open bidding system to provide the subsidy. Only these solar companies can provide you subsidy on solar.
How Solar Company Get Subsidy From the Government
First of all, the solar company will install your solar system and put a request for net metering. After the completion of the net meter request process, the net meter is connected with your solar system. Net meter generates a report of your solar system and the same report is submitted for subsidy.
MNRE will evaluate the report of your solar system and will send the subsidy amount to the account of the solar company after sanctioning. Keep in mind that the subsidy will not come in your bank account but the account of the solar company. The solar company will collect the remaining payment from you after reducing the amount of subsidy.
Click to See: List of State Nodal Agencies
| S.No. | Agency Name | Agency Address | Contact Details |
| 1 | ADMINISTRATION OF DADRA & NAGAR HAVELI | Administration of Dadra & Nagar Haveli 1st Floor, South Wingh, New Collectorate Building 66KV Road, Amli , Silvassa-396230 | (Mobile : 9650256310) |
| District : Dadra & Nagar Haveli | (Email : admr-daman-guj[at]nic[dot]in) | ||
| State : DADRA and NAGAR HAVELI | |||
| 2 | AGENCY FOR NON- CONVENTIONAL ENERGY AND RURAL TECHNOLOGY (ANERT) | Agency for Non-Conventional Energy and Rural Technology (ANERT), VikasBhavan (P.O.), Thiruvananthapuram- 695 033 (Kerala) | (Mobile : 9495921353) |
| District : Alappuzha | (Landphone : 0471-2338077) | ||
| State : KERALA | (Email : aneesh[at]anert[dot]in) | ||
| (website : www.anert.gov.in) | |||
| 3 | ANDAMAN & NICOBAR ISLAND NRSE DIVISION, PROTHRAPUR, PORT BLAIR | Andaman & Nicobar Island NRSE Division, Prothrapur, Port Blair – 744105. | (Mobile : 9434260130) |
| District : NORTH & MIDDLE ANDAMAN | (Email : itcellelepb[at]gmail[dot]com) | ||
| State : ANDAMAN and NICOBAR ISLANDS | |||
| 4 | ANDHRA PRADESH – NEW & RENEWABLE ENERGY DEVELOPMENT CORPORATION OF ANDHRA PRADESH (NREDCAP) | 5-8-207/2, Pisgah Complex, Nampally, Hyderabad – 500 001 | (Mobile : 9000777696) |
| District : Guntur | (Landphone : 040-23201172) | ||
| State : ANDHRA PRADESH | (Email : we[at]nedcap[dot]gov[dot]in) | ||
| 5 | ARUNACHAL PRADESH ENERGY DEVELOPMENT AGENCY (APEDA) | Urja Bhawan, Tadar Tang Marg, Post Box No. 141, Itanagar-791111 | (Mobile : 9436040907) |
| District : Lohit | (Landphone : 0360-2211160) | ||
| State : ARUNACHAL PRADESH | (Email : apeda79[at]yahoo[dot]com) | ||
| 6 | ASSAM ENERGY DEVELOPMENT AGENCY, (AEDA) | BigyanBhawan, ABC, Near IDBI Building,ABC, G. S. Road, Guwahati- 781 005 | (Mobile : 9864094255) |
| District : Baksa | (Landphone : 0361-2450646) | ||
| State : ASSAM | (Email : assamrenewable[at]gmail[dot]com) | ||
| 7 | BIHAR RENEWABLE ENERGY DEVELOPMENT AGENCY (BREDA) | 3rd Floor, SoneBhawan,Birchand Patel Marg, Patna – 800 001 (Bihar) | (Mobile : 9470667150) |
| District : Patna | (Landphone : 0612-2507734) | ||
| State : BIHAR | (Email : breda[at]breda[dot]in) | ||
| 8 | CHANDIGARH RENEWABLE ENERGY, SCIENCE & TECHNOLOGY PROMOTION SOCIETY (CREST) | Chandigarh Renewable Energy, Science & Technology Promotion Society (CREST) ParyawaranBhawan, 1st Floor, Madhya Marg, Sector-19-B, Chandigarh-160009 | (Mobile : 9463998525) |
| District : Chandigarh | (Landphone : 0172-2703982) | ||
| State : CHANDIGARH | (Email : crestchandigarh[at]gmail[dot]com) |
| 9 | CHATTISGARH STATE RENEWABLE ENERGY DEVELOPMENT AGENCY (CREDA) | 2nd floor, CSERC Building , Irrigation Colony, Shanti Nagar, Raipur, Chhattisgarh -492001 | (Mobile : 8889031113) |
| District : Raipur | (Landphone : 0771-4019231) | ||
| State : CHHATTISGARH | (Email : aloktv[at]gmail[dot]com) | ||
| 10 | DELHI – ENERGY EFFICIENCY & RENEWABLE ENERGY MANAGEMENT CENTRE | 8th Floor Wing „B‟ Delhi Secretariat I.P Estate New Delhi- 110002 | |
| District : New Delhi | (Landphone : 011-23392034) | ||
| State : NCT OF DELHI | (Email : delhi[dot]eerem[at]gmail[dot]com) | ||
| 11 | GOA ENGERY DEVELOPMENT AGENCY | DST&E Building, 1st Floor, Saligo Plateau Opposite Saligao BardezGoa-403511 | (Mobile : 9158008605) |
| District : NORTH GOA | (Landphone : 0832-2407112) | ||
| State : GOA | (Email : gedagoa[at]yahoo[dot]com) | ||
| 12 | GUJARAT ENERGY DEVELOPMENT AGENCY (GEDA) | 4th Floor, Block No. 11&12 UdyogBhavan, Sector – 11, Gandhinagar – 382 017 | (Mobile : 9909900652) |
| District : Gandhinagar | (Landphone : 079-23257252) | ||
| State : GUJARAT | (Email : director[at]geda[dot]org[dot]in) | ||
| 13 | HARYANA RENEWABLE ENERGY DEVELOPMENT AGENCY (HAREDA) | AkshayUrjaBhwan, Institutional Plot No. 1, Sector 17, Panchkula -134109 | (Mobile : 9416123050) |
| District : Panchkula | (Landphone : 01722585733) | ||
| State : HARYANA | (Email : birthal[dot]podre[at]gmail[dot]com) | ||
| (website : www.hareda.gov.in) | |||
| 14 | HIMACHAL PRADESH ENERGY DEVELOPMENT AGENCY (HIMURJA) | UrjaBhawan, Block 8/A, SDA Complex, Kasumpti, Shimla-171009. | (Mobile : 9418055515) |
| District : Shimla | (Landphone : 0177-2621783) | ||
| State : HIMACHAL PRADESH | (Email : himurja-hp[at]nic[dot]in) | ||
| 15 | JAMMU & KASHMIR ENERGY DEVELOPMENT AGENCY (JAKEDA) | Jammu & Kashmir Energy Development Agency (JAKEDA) Science and Technology Department SDA Colony,Bemina ,Srinagar | (Mobile : 9419406949) |
| District : Srinagar | (Landphone : 0194-2490269) | ||
| State : JAMMU and KASHMIR | (Email : saleempnr[at]gmail[dot]com) | ||
| (website : www.jakeda.jk.gov.in) | |||
| 16 | JHARKHAND RENEWABLE ENERGY DEVELOPMENT AGENCY (JREDA) | Jharkhand Renewable Energy Development Agency (JREDA) 3rd Floor, SLDC Building, Kusai, Doranda Ranchi-834002. Jharkhand | (Mobile : 9431102540) |
| District : Ranchi | (Email : director[at]jreda[dot]com) | ||
| State : JHARKHAND |
| 17 | KARGIL RENEWABLE ENERGY DEVELOPMENT AGENCY (KREDA) | Baroo Tsog, District Kargil-Ladakh, Jammu & Kashmir, Pin -194105 | (Mobile : 9419029088) |
| District : Kargil | (Landphone : 01985-232316) | ||
| State : JAMMU and KASHMIR | (Email : kredakargil[at]gmail[dot]com) | ||
| 18 | KARNATAKA RENEWABLE ENERGY DEVELOPMENT AGENCY LTD. (KREDL) | Karnataka Renewable Energy Development Agency Ltd. (KREDL) No. 39, “Shanthigruha” Bharath Scouts & Guides Building, Place Road, Bangalore- 560 001 | (Mobile : 9448451535) |
| District : Bangalore | (Email : kredlmd[at]gmail[dot]com) | ||
| State : KARNATAKA | |||
| 19 | LADAKH RENEWABLE ENERGY DEVELOPMENT AGENCY (LREDA) | Block II, 1st Floor, Hill Council Secretariat, Leh-Ladakh, (194101) Jammu & Kashmir, India | (Mobile : 9906977888) |
| District : Leh (Ladakh) | (Landphone : 1982-257410) | ||
| State : JAMMU and KASHMIR | (Email : reubengergan[at]gmail[dot]com) | ||
| (website : www.ladakhenergy.org) | |||
| 20 | LAKSHADWEEP – ELECTRICITY DEPARTMENT | Electricity Department Lakshadweep Administration , Kavaratti – 682555 | (Mobile : 9650235986) |
| District : Lakshadweep | (Email : lk-admin[at]nic[dot]in) | ||
| State : LAKSHADWEEP | |||
| 21 | MAHARASHTRA ENERGY DEVELOPMENT AGENCY (MEDA) | Maharashtra Energy Development Agency (MEDA), Sl.No. 191/A, Phase1, 2nd Floor, MHADA Commercial Complex Opp. Tridal Nagar, Yerawada, Pune – 411006 (Maharashtra) | (Mobile : 9552002102) |
| District : Pune | (Landphone : 020-26614403) | ||
| State : MAHARASHTRA | (Email : solar[at]mahaurja[dot]com) | ||
| 22 | MANIPUR RENEWABLE ENERGY DEVELOPMENT AGENCY (MANIREDA) | Manipur Renewable Energy Development Agency (MANIREDA), Department of Science, Technology, Sai Road, Takyelpat,Imphal-795001 (Manipur) | (Mobile : 9436039468) |
| District : IMPHAL | (Landphone : 0385-2452685) | ||
| State : MANIPUR | (Email : mlou_singh[at]yahoo[dot]com) | ||
| 23 | MEGHALAYA NONCONVENTIONAL & RURAL ENERGY DEVELOPMENT AGENCY (MNREDA) | Meghalaya Non-conventional & Rural Energy Development Agency (MNREDA) Near BSF Camp, P.O. Mawpat Shillong – 793 001 (Meghalaya) | (Mobile : 9436102916) |
| District : South Garo Hills | (Email : mnreda[dot]dir[at]gmail[dot]com) | ||
| State : MEGHALAYA | |||
| 24 | MP URJAVIKAS NIGAM LTD. | MP UrjaVikas Nigam Ltd., UrjaBhawan, Link Road No.2 Shivaji Nagar, Bhopal -462016 | (Mobile : 7558556526) |
| District : Bhopal | (Landphone : 0755-2556526) | ||
| State : MADHYA PRADESH | (Email : mduvnb[at]gmail[dot]com) | ||
| (website : www.mprenewable.nic.in) |
| 25 | NAGALAND RENEWABLE ENERGY DEVELOPMENT AGENCY (NREDA) | Nagaland Renewable Energy Development Agency (NREDA) Department of New and Renewable Energy Old Industries & Commerce Office Building Upper Chandmare, Kohina-797001Nagaland. | (Mobile : 9436005673) |
| District : Kohima | (Email : dirdnre[at]gmail[dot]com) | ||
| State : NAGALAND | |||
| 26 | ODISHA RENEWABLE ENERGY DEVELOPMENT AGENCY | Odisha Renewable Energy Development Agency S-59, Mancheswar Industrial Estate Bhubaneswar – 751 010 (Odisha) | (Mobile : 9668582360) |
| District : Baleshwar | (Email : ceoreda[at]oredaorissa[dot]com) | ||
| State : ORISSA | |||
| 27 | PUNJAB ENERGY DEVELOPMENT AGENCY (PEDA) | Punjab Energy Development Agency (PEDA) SCO 134-136, Sector 34-A, Chandigarh-160036 | (Mobile : 9876693975) |
| District : Ludhiana | (Email : blsingh29[at]rediffmail[dot]com) | ||
| State : PUNJAB | |||
| 28 | RAJASTHAN RENEWABLE ENERGY CORPORATION LIMITED (RRECL) | Rajasthan Renewable Energy Corporation Limited E 166 Yudhister Marg CScheme Jaipur 302001 Rajasthan | (Mobile : 9413333095) |
| District : Jaipur | (Landphone : 0141-2225859) | ||
| State : RAJASTHAN | (Email : rrec_jaipur[at]yahoo[dot]co[dot]in) | ||
| 29 | RENEWABLE ENERGY AGENCY OF PONDICHERRY | Renewable Energy Agency of Pondicherry No.10, Second Main Road, Elango Nagar,Pondicherry – 605011. | (Mobile : 9876485962) |
| District : Puducherry | (Landphone : 0413-2354319) | ||
| State : PUDUCHERRY | (Email : pdreap[at]gmail[dot]com) | ||
| 30 | SIKKIM RENEWABLE ENERGY DEVELOPMENT AGENCY | Sikkim Renewable Energy Development Agency, Government of Sikkim, D.P.H. Road (Near JantaBhawan), Gangtok – 737 101. (Sikkim) | |
| District : East | (Landphone : 044-28224830) | ||
| State : SIKKIM | (Email : siphoratargain[at]sreda[dot]gov[dot]in) | ||
| 31 | TAMIL NADU ENERGY DEVELOPMENT AGENCY (TEDA) | Tamil Nadu Energy Development Agency (TEDA) 5th Floor, Door No. 68 College Road, EVK Sampath Building, Maaligai, Chennai – 600 006 | |
| District : Chennai | (Email : cmdteda[at]gmail[dot]com) | ||
| State : TAMIL NADU | |||
| 32 | TELANGANA STATE RENEWABLE ENERGY DEVELOPMENT CORPORATION LTD (TSREDCO) | Executive Engineer 5-8-207/2, Pisgah Complex, Nampally, Hyderabad, 500001 | (Mobile : 9948052767) |
| District : Hyderabad | (Landphone : 040-23201502) | ||
| State : TELANGANA | (Email : se[at]tnredcl[dot]telangana[dot]gov[dot]in) | ||
| (website : www.tnredcl.telangana.gov.in/) | |||
| 33 | TRIPURA RENEWABLE ENERGY DEVELOPMENT AGENCY (TREDA) | Tripura Renewable Energy Development Agency (TREDA) VigyanBhawan, 2nd Floor, Pandit Nehru Complex Gorkhabasti, Agartala – 799 006 | (Mobile : 9436167937) |
| District : North Tripura | (Landphone : 0381-2325900) | ||
| State : TRIPURA | (Email : tredaagartala[at]gmail[dot]com) | ||
| 34 | UP NEW AND RENEWABLE ENERGY DEVELOPMENT AGENCY (UPNEDA) | UP New and Renewable Energy Development Agency (UPNEDA) VibhutiKhand, Gomti Nagar, Lucknow – 226 010 | (Mobile : 9415609002) |
| District : Lucknow | (Landphone : 0522-2720652) | ||
| State : UTTAR PRADESH | (Email : dirupneda[at]gmail[dot]com) | ||
| (website : www.neda.up.org.in) | |||
| 35 | UTTRAKHAND RENEWABLE ENERGY DEVELOPMENT AGENCY (UREDA) | Uttrakhand Renewable Energy Development Agency (UREDA) Urja Park Campus, Industrial Area, Patel Nagar,Dehradun-248001 | (Mobile : 8307604555) |
| District : Dehradun | (Landphone : 0135-2521387) | ||
| State : UTTARAKHAND | (Email : director[dot]uredahq[at]gmail[dot]com) | ||
| 36 | WEST BENGAL RENEWABLE ENERGY DEVELOPMENT AGENCY (WBREDA) | West Bengal Renewable Energy Development Agency (WBREDA) Bikalpa Shakti Bhawan, Plot- J-1/10, Sector- V, EP & GP Block, Salt Lake, Electronic Complex, Kolkata- 700091 | (Mobile : 9433170537) |
| District : Kolkata | (Email : director[dot]wbreda[at]gmail[dot]com) | ||
| State : WEST BENGAL | |||
| 37 | ZORAM ENERGY DEVELOPMENT AGENCY (ZEDA) | Zoram Energy Development Agency (ZEDA), ZEDA Building, Above 132 KV Sub – Station, Zuangtui, P.O, Zemabawk–796017 Aizawl, Mizoram | (Mobile : 9436145042) |
| District : AIZAWL | (Email : zedaaizawl[at]hotmail[dot]com) |
#6. Return On Investment on Solar
Residential and commercial customers who are paying more than Rs.1,000 as monthly electricity bills should consider installing an on-grid solar system to save their electricity bills. It not only saves your money but also will give you an amazing return on investment. Look at the ROI calculator below for more details.
Click to See: Return on Investment on Solar (Capacity-Wise)
Solar Plant | Solar Plant Cost | Govt. Subsidy | Cost After Subsidy | Generation/Month | Monthly Saving | Payback Period |
Rs.58,000 | Rs.23,200 | Rs.34,800 | 120 units | Rs.960 | 4.5 Years | |
Rs.93,000 | Rs.37,200 | Rs.55,800 | 240 units | Rs.1,920 | 4.5 Years | |
Rs.1,30,000 | Rs.52,000 | Rs.78,000 | 360 units | Rs.2,880 | 4.5 Years | |
Rs.2,03,000 | Rs.40,600 | Rs.1,62,400 | 600 units | Rs.4,800 | 4 Years | |
Rs.3,82,000 | Rs.76,400 | Rs.3,05,600 | 1440 units | Rs.11,520 | 3 Years |
#7. Solar Net Metering Benefit
An on-grid solar system gives you subsidy benefits as well as net metering benefits. You can run all your appliances in the daytime by using solar power. Keep in mind that at this time you are not using grid electricity and hence your electricity bill is not increasing during the day.
If your solar system is generating more electricity than you consume, you can export it to the utility grid through a net meter. A net meter is a small device that allows you to inject electricity into the government grid. It measures the units of electricity that have been exported by you to the grid. At the end of the month, the government will adjust it in your electricity bill and pay you a certain amount as per your export.
In case your solar system is generating less solar energy than your consumption, then you can use grid electrified without any problem. Because the grid connection will already be connected to your home appliances.
#8. Accelerated Depreciation & Tax Benefit
Commercial, private, and industrial customers can leverage accelerated depreciation benefits. Solar power generation projects have the option of profiting from accelerated depreciation benefit by the central government, as per section 32 of the Income Tax Act, 1961. Companies can use this to substantially reduce their tax burden in the first few years of the project up to 100% of the project cost (80% accelerated depreciation and 20% additional depreciation)
Under section 80-IA of the Income Tax Act, 1961 the central government provides a 10-year tax holiday, in which the beneficiary has the freedom to choose a 10-year continuous period in the first fifteen years of the project life to avail the tax benefit. The projects are taxed by using the Minimum Alternate Tax (MAT) rate, which is significantly lower than the corporate tax rate.
The central government has mandated concessions and exemptions on specific materials imported for the manufacture of solar power generation products as well as for use in solar power generation projects.
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Frequently Asked Question
In a government subsidy scheme, 20% to 90% benchmark cost of your solar system will be paid by the government on your behalf.
No, the rate of subsidy on solar is different from state to state. There is 90% subsidy on solar water pump for farmers, 70% subsidy for hill states (H.P, UK, and J&K only), and 30% subsidy available for all states in India.
The government provides subsidies on the hybrid solar system (without batteries), on grid solar system , and solar water pump.
The rate of the subsidy varies from state to state. Each state has its solar department and different solar policies. Generally, the government provides 20% to 90% subsidies in India.
Yes, the government provides subsidy only for domestic use, social sectors, educational institutes, and non-profit organizations. There is no government subsidy for a commercial solar system.
In India, almost all the states are providing subsidies on solar system.
It varies as per your state solar policy. But as on average, it takes 3 to 6 months to get credited to the solar company’s account.
Every state has its online portals to apply for the subsidy. Through them, you can contact your state nodal agency.
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Written by: Hari Sharan & Updated On: 02/05/2022 By: Bhanwar Chauhan
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