What is Subsidy on Solar?

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.

(इस पेज को हिंदी में पढ़े: सोलर पैनल सिस्टम पर सब्सिडी)

Government subsidy on solar India

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.

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 Solar Subsidy is available?

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

Is solar subsidy available on all types of systems?

After knowing about solar subsidy rates, now the question arises whether the subsidy is available on all types of solar systems. For this, you need to have some knowledge about the type of solar system. So let’s dive into it.

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.

Claim up to 90% Subsidy on Solar Water Pump

Yes, you heard it absolutely right. Now you can also get up to 90% subsidy on the solar water pump. For the overall development of India, the government is paying special attention to the agriculture sector. That is why to promote the use of solar-powered pumps in the field of agriculture, the government is providing a subsidy of up to 90% to the farmers. Now you can double your profits by installing solar pumps in your farms at very affordable prices.

Who can get the 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.

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.

S.No. Agency Name Agency Address  Contact Details
1ADMINISTRATION OF DADRA & NAGAR HAVELIAdministration of Dadra & NagarHaveli 1st Floor, South Wingh, NewCollectorate 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 
2AGENCY FOR NON-CONVENTIONAL ENERGY ANDRURAL 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)
3ANDAMAN & NICOBAR ISLANDNRSE DIVISION, PROTHRAPUR,PORT BLAIRAndaman & 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 
4ANDHRA PRADESH - NEW &RENEWABLE ENERGYDEVELOPMENT CORPORATIONOF 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)
5ARUNACHAL PRADESHENERGY DEVELOPMENTAGENCY (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)
6ASSAM ENERGYDEVELOPMENT AGENCY,(AEDA)BigyanBhawan, ABC, Near IDBIBuilding,ABC, G. S. Road, Guwahati-781 005(Mobile : 9864094255)
District : Baksa(Landphone : 0361-2450646)
State : ASSAM(Email : assamrenewable[at]gmail[dot]com)
7BIHAR RENEWABLE ENERGYDEVELOPMENT AGENCY(BREDA)3rd Floor, SoneBhawan,BirchandPatel Marg, Patna – 800 001 (Bihar)(Mobile : 9470667150)
District : Patna(Landphone : 0612-2507734)
State : BIHAR(Email : breda[at]breda[dot]in)
8CHANDIGARH RENEWABLE ENERGY, SCIENCE &TECHNOLOGY PROMOTIONSOCIETY (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)
 
9CHATTISGARH STATERENEWABLE ENERGYDEVELOPMENT AGENCY(CREDA)2nd floor, CSERC Building , IrrigationColony, Shanti Nagar, Raipur, Chhattisgarh -492001(Mobile : 8889031113)
District : Raipur(Landphone : 0771-4019231)
State : CHHATTISGARH(Email : aloktv[at]gmail[dot]com)
10DELHI - ENERGY EFFICIENCY &RENEWABLE ENERGYMANAGEMENT CENTRE8th 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)
11GOA ENGERY DEVELOPMENT AGENCYDST&E Building, 1st Floor, SaligoPlateau Opposite Saligao BardezGoa-403511(Mobile : 9158008605)
District : NORTH GOA(Landphone : 0832-2407112)
State : GOA(Email : gedagoa[at]yahoo[dot]com)
12GUJARAT ENERGYDEVELOPMENT AGENCY(GEDA)4th Floor, Block No. 11&12UdyogBhavan, Sector – 11,Gandhinagar – 382 017(Mobile : 9909900652)
District : Gandhinagar(Landphone : 079-23257252)
State : GUJARAT(Email : director[at]geda[dot]org[dot]in)
13HARYANA RENEWABLEENERGY DEVELOPMENTAGENCY (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)
14HIMACHAL PRADESH ENERGYDEVELOPMENT AGENCY(HIMURJA)UrjaBhawan, Block 8/A, SDAComplex, Kasumpti, Shimla-171009.(Mobile : 9418055515)
District : Shimla(Landphone : 0177-2621783)
State : HIMACHAL PRADESH(Email : himurja-hp[at]nic[dot]in)
15JAMMU & KASHMIR ENERGYDEVELOPMENT AGENCY(JAKEDA)Jammu & Kashmir EnergyDevelopment Agency (JAKEDA)Science and Technology DepartmentSDA 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)
16JHARKHAND RENEWABLEENERGY DEVELOPMENTAGENCY (JREDA)Jharkhand Renewable EnergyDevelopment Agency (JREDA) 3rdFloor, SLDC Building, Kusai, DorandaRanchi-834002. Jharkhand(Mobile : 9431102540)
District : Ranchi(Email : director[at]jreda[dot]com)
State : JHARKHAND 
 
17 KARGIL RENEWABLE ENERGYDEVELOPMENT 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)
18KARNATAKA RENEWABLEENERGY DEVELOPMENTAGENCY LTD. (KREDL)Karnataka Renewable EnergyDevelopment Agency Ltd. (KREDL) No. 39, “Shanthigruha” BharathScouts & Guides Building, PlaceRoad, Bangalore- 560 001(Mobile : 9448451535)
District : Bangalore(Email : kredlmd[at]gmail[dot]com)
State : KARNATAKA 
19LADAKH RENEWABLE ENERGYDEVELOPMENT AGENCY(LREDA)Block II, 1st Floor, Hill CouncilSecretariat, 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)
20LAKSHADWEEP - ELECTRICITY DEPARTMENTElectricity Department Lakshadweep Administration , Kavaratti – 682555(Mobile : 9650235986)
District : Lakshadweep(Email : lk-admin[at]nic[dot]in)
State : LAKSHADWEEP 
21MAHARASHTRA ENERGYDEVELOPMENT AGENCY(MEDA)Maharashtra Energy DevelopmentAgency (MEDA), Sl.No. 191/A,Phase1, 2nd Floor, MHADACommercial Complex Opp. TridalNagar, Yerawada, Pune – 411006(Maharashtra)(Mobile : 9552002102)
District : Pune(Landphone : 020-26614403)
State : MAHARASHTRA(Email : solar[at]mahaurja[dot]com)
22MANIPUR RENEWABLEENERGY DEVELOPMENTAGENCY (MANIREDA)Manipur Renewable EnergyDevelopment 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)
23MEGHALAYA NONCONVENTIONAL & RURALENERGY DEVELOPMENTAGENCY (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 
24MP URJAVIKAS NIGAM LTD.MP UrjaVikas Nigam Ltd.,UrjaBhawan, Link Road No.2 ShivajiNagar, Bhopal -462016(Mobile : 7558556526)
District : Bhopal(Landphone : 0755-2556526)
State : MADHYA PRADESH(Email : mduvnb[at]gmail[dot]com)
 (website : www.mprenewable.nic.in)
 
25NAGALAND RENEWABLEENERGY DEVELOPMENTAGENCY (NREDA)Nagaland Renewable EnergyDevelopment Agency (NREDA)Department of New and RenewableEnergy Old Industries & Commerce Office Building Upper Chandmare, Kohina-797001Nagaland.(Mobile : 9436005673)
District : Kohima(Email : dirdnre[at]gmail[dot]com)
State : NAGALAND 
26ODISHA RENEWABLE ENERGY DEVELOPMENT AGENCYOdisha Renewable EnergyDevelopment Agency S-59,Mancheswar Industrial EstateBhubaneswar – 751 010 (Odisha)(Mobile : 9668582360)
District : Baleshwar(Email : ceoreda[at]oredaorissa[dot]com)
State : ORISSA 
27PUNJAB ENERGYDEVELOPMENT 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 
28RAJASTHAN RENEWABLEENERGY CORPORATIONLIMITED (RRECL)Rajasthan Renewable EnergyCorporation Limited E 166 YudhisterMarg CScheme Jaipur 302001Rajasthan(Mobile : 9413333095)
District : Jaipur(Landphone : 0141-2225859)
State : RAJASTHAN(Email : rrec_jaipur[at]yahoo[dot]co[dot]in)
29RENEWABLE ENERGY AGENCY OF PONDICHERRYRenewable Energy Agency ofPondicherry No.10, Second Main Road, Elango Nagar,Pondicherry – 605011.(Mobile : 9876485962)
District : Puducherry(Landphone : 0413-2354319)
State : PUDUCHERRY(Email : pdreap[at]gmail[dot]com)
30SIKKIM RENEWABLE ENERGY DEVELOPMENT AGENCYSikkim Renewable EnergyDevelopment Agency, Government ofSikkim, D.P.H. Road (NearJantaBhawan), Gangtok – 737 101.(Sikkim) 
District : East(Landphone : 044-28224830)
State : SIKKIM(Email : siphoratargain[at]sreda[dot]gov[dot]in)
31TAMIL NADU ENERGYDEVELOPMENT AGENCY(TEDA)Tamil Nadu Energy Development Agency (TEDA) 5th Floor, Door No. 68 College Road, EVK SampathBuilding, Maaligai, Chennai – 600 006 
District : Chennai(Email : cmdteda[at]gmail[dot]com)
State : TAMIL NADU 
32TELANGANA STATERENEWABLE ENERGYDEVELOPMENT CORPORATIONLTD (TSREDCO)Executive Engineer 5-8-207/2, PisgahComplex, 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/)
33TRIPURA RENEWABLE ENERGYDEVELOPMENT AGENCY(TREDA)Tripura Renewable EnergyDevelopment Agency (TREDA)VigyanBhawan, 2nd Floor, PanditNehru Complex Gorkhabasti, Agartala – 799 006(Mobile : 9436167937)
District : North Tripura(Landphone : 0381-2325900)
State : TRIPURA(Email : tredaagartala[at]gmail[dot]com)
34UP NEW AND RENEWABLEENERGY DEVELOPMENTAGENCY (UPNEDA)UP New and Renewable EnergyDevelopment 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)
35UTTRAKHAND RENEWABLEENERGY DEVELOPMENTAGENCY (UREDA)Uttrakhand Renewable EnergyDevelopment Agency (UREDA) UrjaPark Campus, Industrial Area, PatelNagar,Dehradun-248001(Mobile : 8307604555)
District : Dehradun(Landphone : 0135-2521387)
State : UTTARAKHAND(Email : director[dot]uredahq[at]gmail[dot]com)
36WEST BENGAL RENEWABLEENERGY DEVELOPMENTAGENCY (WBREDA)West Bengal Renewable EnergyDevelopment 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 
37ZORAM ENERGYDEVELOPMENT AGENCY(ZEDA)Zoram Energy Development Agency(ZEDA), ZEDA Building, Above 132KV Sub - Station, Zuangtui, P.O,Zemabawk–796017 Aizawl, Mizoram(Mobile : 9436145042)
District : AIZAWL(Email : zedaaizawl[at]hotmail[dot]com)
 

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.

Solar Plant

Solar Plant Cost

Govt. Subsidy

Cost After Subsidy

Generation/Month

Monthly Saving

Payback Period

1KW solar system

Rs.58,000

Rs.23,200

Rs.34,800

120 units

Rs.960

4.5 Years

2KW solar system

Rs.93,000

Rs.37,200

Rs.55,800

240 units

Rs.1,920

4.5 Years

3KW solar system

Rs.1,30,000

Rs.52,000

Rs.78,000

360 units

Rs.2,880

4.5 Years

5KW solar system

Rs.2,03,000

Rs.40,600

Rs.1,62,400

600 units

Rs.4,800

4 Years

10KW solar system

Rs.3,82,000

Rs.76,400

Rs.3,05,600

1440 units

Rs.11,520

3 Years

Net Metering Benefits

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.

Solar net metering system explained in india

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.

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)

Tax benefit on solar

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.

FAQs – Subsidy on Solar

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.

Almost every state has its online portals to apply for the subsidy. Through them, you can contact your state nodal agency.

The subsidy released by the government will directly go to the solar system installation company.

No, in that case, you will not get the subsidy. If you want to get the subsidy on your solar system then pre-approval by your state government is must.

No, your property tax is totally a different thing.

We have provided the details above. From there you can see the nodal agencies of your state, their addresses, and their contact numbers.

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