Solar Subsidy in India 2021
In all Probability, all your household/Industrial appliances run on the electricity that you get from the state electricity grid which can be unreliable and also a cause of environmental damage. wouldn't it be wonderful if you could have your own source of generating electricity from solar with the added bonus of reducing your carbon footprint?
To save and resources for the future generation, the Indian government has started an electricity saving project called Solar Rooftop Power Plant. We all know everyone is not adopting solar energy it in the residential/commercial sector and its obvious reason is expensive. Therefore, Center government understood this problem and launched MNRE solar subsidy scheme of 40 % up to 3 KW Plus 20% for Remaining above 3 KW up to 10 kW for the Domestic sector. Besides, 70% subsidy in hill stations states like Himachal Pradesh, Uttarakhand, and Jammu & Kashmir, and 90% subsidy available for farmers on water pumping systems.
Who can get the subsidy on solar?
|Type of residential sector||Solar Subsidy|
|Residential sector ( up to 3 kW Capacity)||40 % of the benchmark cost|
|Residential sector (above 3 kW capacity
and up to 10 kW capacity)
|40 % up to 3 KW
Plus 20% for Remaining above 3 KW and
up to 10 kW
|Group Housing Societies/Residential
Welfare Associations (GHS/RWA) etc.
for common facilities up to 500 kW (@
10 kWp per house)
|20% of the benchmark cost|
The average cost of installation of rooftop PV system without subsidy is around Rs 60,000 - 70,000. After leveraging subsidy, people just have to pay Rs 40,000 - 50,000 for installing a rooftop PV system. The objective of this solar scheme is to promote alternate green which is cost-effective almost 90% off over normal electricity served by the Electricity Department.
What are the documents required to apply for Solar Subsidy?
Soft copy of Identity Proof to be uploaded Online on DISCOM Website.
- Aadhaar Card
- PAN Card
- Electricity Bill
The benefit of Grid-connected/On-Grid solar system?
- Reduce your electricity bill up to 90%.
- Performance Warranty for more than 25 years.
- Payback period about 4-5 years.
- No maintenance Only Cleaning of Solar Panel once in 10 Days.
- Approximately cost Rs. 40,000- Rs.50, 000 per KWp.
- An additional incentive of Rs.1.00 per unit on total solar power-generated in electricity bills.
- Feed Excess Solar power generated from solar panel to grid through Net-Metering Facility.