What government subsidies are available for solar?

Government subsidies make solar energy significantly more affordable for Indian homeowners and businesses. Understanding available incentives helps you maximize savings and reduce your upfront investment substantially.

Central Government Solar Subsidy Scheme

The Ministry of New and Renewable Energy (MNRE) provides direct capital subsidies under PM Surya Ghar Muft Bijli Yojana for residential rooftop solar installations. For systems up to 2kW, you receive ₹30,000 per kW. For capacity between 2kW-3kW, you receive ₹18,000 per kW. The total subsidy is capped at ₹78,000 for systems of 3kW and above.

State-Level Incentives

Many states offer additional subsidies and incentives on top of central government support. States like Gujarat, Maharashtra, Karnataka, and Tamil Nadu provide generation-based incentives, accelerated depreciation benefits for commercial installations, and waived electricity duty. Check with local DISCOM (Distribution Company) for state-specific programs.

Net Metering Benefits

Net metering allows you to export excess solar power to the grid and receive credits on your electricity bill. This effectively acts as free energy storage - you build credits during sunny periods and use them at night. Net metering policies vary by state, with some offering 1:1 credit and others providing time-of-day rates.

Tax Benefits for Businesses

Commercial and industrial solar installations qualify for accelerated depreciation (40% in first year, 20% subsequently), income tax deductions under Section 80-IA for power generation, and GST input tax credit on solar equipment. These benefits significantly improve project ROI for businesses.

Subsidy Application Process

Xrossways handles the complete subsidy application process. We register your installation on the National Portal for Rooftop Solar, submit all required documentation, coordinate inspections, and follow up until subsidy is credited to your account (typically 3-6 months post-installation). You don't need to navigate bureaucracy - we handle everything.

Eligibility Requirements

To qualify for subsidies, systems must use MNRE-approved equipment, be installed by empaneled vendors (like Xrossways), meet technical specifications, and be registered before installation. Residential consumers with sanctioned load and valid electricity connection are eligible. Commercial installations have different criteria focused on depreciation and tax benefits.

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