The need to transition to renewable energy has never been more urgent. With the looming threat of global warming and the increasing environmental impacts of traditional energy sources, world leaders have committed to adopting sustainable solutions. At the 26th UN Climate Change Conference of the Parties (COP26) in Glasgow, nations, including India, made significant pledges to reduce carbon emissions and limit global temperature rise. One of the core solutions presented at COP26 to address the climate crisis is the widespread adoption of renewable energy, with a strong focus on solar power.
Global warming continues to pose a grave threat to the planet, causing rising sea levels, extreme weather patterns, and disruptions in ecosystems. As fossil fuels continue to be the primary source of energy, they release harmful greenhouse gases into the atmosphere, further accelerating climate change. Solar energy, being one of the cleanest and most abundant sources of renewable energy, offers a sustainable alternative. By harnessing the power of the sun, solar panels can significantly reduce greenhouse gas emissions, thereby helping mitigate the effects of global warming.
In India, the government has recognized the critical role that solar energy plays in addressing climate change and has implemented various solar panel subsidy schemes to encourage the widespread adoption of solar power. These solar panel government schemes not only help reduce dependence on fossil fuels but also provide financial assistance to make solar power more accessible to individuals and businesses. With solar energy, India has the opportunity to reduce its carbon footprint, create job opportunities, and contribute to a cleaner, greener future.
As the world embraces the shift toward renewable energy, India has rolled out multiple solar panel subsidies to make solar power affordable for its citizens. These subsidies provide an excellent opportunity for homeowners, businesses, and farmers to reduce their energy costs while simultaneously contributing to the global fight against climate change. In this blog, we will delve into the top five solar panel government subsidies that you can avail in India, how to apply for them, and how Rishika Kraf can assist you in installing solar panels at your home or business.
What Are Government Subsidies?
A government subsidy is a form of financial assistance or incentive provided by the government to encourage the use of certain products or services. In the context of solar power, the solar panel subsidy is designed to reduce the upfront cost of solar panel installations, making solar energy more affordable and accessible for the general public. The government solar panel schemes are typically designed to promote renewable energy sources like solar power, aiming to achieve sustainability goals and reduce dependency on fossil fuels.
How to Avail These Subsidies
To avail of the solar panel subsidy, you need to follow specific steps:
- Check Eligibility: Government subsidies on solar power plants are often based on criteria such as the location, the size of the system, and whether the installation is for residential, commercial, or industrial purposes.
- Choose a Registered Vendor: The government often works with authorized solar vendors to ensure quality and reliability. You need to choose a solar system for home in India from a government subsidy vendor from a list of approved vendors.
- Submit Documents: The application process usually requires submitting documents like property ownership details, identification proof, and bank account information.
- Apply Online or Offline: Some states allow you to apply for solar system for home in India government subsidy through online portals, while others may require you to apply offline.
- Installation and Inspection: Once your application is approved, the solar installation will be done by the vendor, and an inspection will follow to verify the installation.
- Get Subsidy: Upon successful inspection, the government subsidy on solar power plants will be credited to your account or adjusted against the total cost of installation.
Now, let's dive into the top solar panel subsidies offered by the Indian government.
1. Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM KUSUM)
The PM KUSUM scheme aims to promote the use of solar energy among farmers. The Indian government provides financial assistance through a subsidy on solar power plants to help farmers install solar pumps and grid-connected solar power systems. The scheme is designed to boost the income of farmers by providing them with access to solar power, reducing their dependence on grid power.
Under this scheme, farmers can get a subsidy of up to 60% for installing solar water pumps and solar power plants. The government’s goal is to install 20,000 MW of solar capacity under the PM KUSUM scheme by 2022. This initiative is particularly beneficial for farmers looking to set up solar-powered irrigation systems.
Key Features of PM KUSUM Scheme:
- Up to 60% subsidy on solar pumps and power plants.
- Provides financial assistance to farmers for the installation of solar pumps.
- Aimed at reducing farmers' dependence on traditional energy sources.
- Encourages the use of renewable energy for irrigation purposes.
2. PM Surya Ghar Muft Bijli Yojana
The PM Surya Ghar Muft Bijli Yojana is a nationwide initiative aimed at making rooftop solar systems more accessible and affordable for Indian households. With a substantial budget of ₹75,021 crore allocated until 2026-27, the scheme encourages residential consumers to switch to solar energy, reducing dependency on traditional electricity sources. It provides a direct subsidy on solar power plants for eligible consumers, cutting electricity costs and allowing surplus power to be sold back to the grid.
Key Features:
- 60% subsidy for solar systems up to 2 kW and 40% subsidy for 2-3 kW systems, capped at 3 kW.
- Households consuming up to 300 units per month can save approximately ₹15,000 annually.
- Online registration and application available through pmsuryaghar.gov.in.
- Supports grid-connected solar systems with net metering benefits.
- Aligned with India’s sustainability goals under COP26 commitments.
3. Delhi Solar Energy Policy 2023
The Delhi Solar Energy Policy 2023 is a key initiative by the Delhi government to expand the city’s solar capacity and promote renewable energy adoption. It focuses on making solar power accessible and cost-effective for residential, commercial, and industrial consumers. The policy introduces Generation-Based Incentives (GBI) and capital subsidies to encourage installations, with a vision of achieving 4,500 MW of solar capacity by 2026-27.
Key Features:
- Generation-Based Incentives (GBI): Consumers earn ₹2-3 per unit for the solar power they generate.
- Net Metering & Community Solar Models allow shared solar systems for apartments and housing societies.
- 750 MW of rooftop solar within Delhi and 3,750 MW utility-scale solar from external sources.
- Renewable Energy Service Company (RESCO) model enables solar adoption with zero upfront costs.
- Contributes to lower electricity costs, energy security, and environmental sustainability.
4. Grid-Connected Rooftop Solar Power Scheme
The Grid-Connected Rooftop Solar Power Scheme is another government solar scheme that aims to encourage individuals, businesses, and institutions to install rooftop solar panels. This scheme offers a subsidy of up to 40% for residential installations and up to 30% for commercial and institutional installations. The solar system for homes in India government subsidy under this scheme makes it more affordable for homeowners to install grid-connected rooftop solar power systems.
The main advantage of this scheme is that it allows you to sell excess power generated by your solar panels back to the grid, earning money through the net metering system.
Key Features of Grid-Connected Solar Scheme:
- Subsidy of up to 40% for residential installations and 30% for commercial installations.
- Enables individuals to sell excess solar energy to the grid through net metering.
- Encourages the use of renewable energy in both residential and commercial sectors.
5. Pradhan Mantri Awas Yojana (PMAY) for Solar Panel Installation
Under the PMAY scheme, the Indian government has introduced incentives to promote solar energy in affordable housing projects. The Pradhan Mantri Awas Yojana (PMAY) aims to provide affordable housing for all by 2022. As part of this initiative, the government offers subsidies for the installation of solar panels in homes under construction or being renovated.
The subsidy for solar panels is provided to help residents reduce their energy costs and improve the energy efficiency of their homes.
Key Features of PMAY Solar Panel Subsidy:
- Offers subsidies for solar panels in affordable housing projects.
- Aims to improve energy efficiency and reduce electricity costs for homeowners.
- Available for individuals applying under the PMAY scheme.
How Can Rishika Kraf Help in Solar Panel Installation?
Rishika Kraf is a trusted provider of solar panel installation services. With years of experience in the renewable energy sector, Rishika Kraf helps homeowners, businesses, and farmers take full advantage of the available solar panel subsidies. From assessing your energy needs to guiding you through the solar panel subsidy application process, Rishika Kraf ensures a seamless experience.
Their expert team can assist in:
- Installing solar panels at your home or business.
- Helping you apply for the solar panel subsidy schemes.
- Ensuring proper documentation and follow-ups for subsidy approval.
- Offering consultation on the best solar systems based on your requirements.
Conclusion
With the increasing importance of renewable energy in combating global warming and achieving sustainability, solar power stands out as one of the most viable options. The solar panel government schemes in India provide a significant opportunity for homeowners, businesses, and farmers to make the switch to clean energy, while also benefiting from financial assistance.
By availing these solar panel subsidies, you can not only save on your electricity bills but also contribute to reducing the environmental impact of traditional energy sources. With expert help from Rishika Kraf, the process of installing solar panels and applying for subsidies becomes easier, allowing you to embrace a greener future while benefiting from financial incentives.
FAQs
- What is the solar panel subsidy offered by the Indian government?
The Indian government offers various solar panel subsidies to promote the use of solar power. These subsidies vary by scheme and can cover up to 60% of the installation cost.
- How can I avail of the subsidy on solar power plants?
To avail of the subsidy on solar power plants, you must apply through the authorized government portals or state-specific agencies, choose an approved vendor, and submit the required documents.
- Is there a free solar panel scheme by the government of India?
While there is no completely free solar panel scheme, the government provides significant subsidies on solar installations, making it very affordable for eligible individuals and businesses.
- Can I install solar panels for my home with government subsidies?
Yes, the government provides a solar system for home in India government subsidy to encourage homeowners to install solar panels. This subsidy can cover up to 40% of the cost for 2-3 kW and 60% for 2kW.
- How does the PM KUSUM scheme benefit farmers?
The PM KUSUM scheme offers subsidies on solar power plants for farmers, helping them reduce their electricity costs for irrigation and gain income by selling excess power to the grid.
- What is the net metering system for solar panels?
The net metering system allows you to sell the excess solar energy generated by your system back to the grid, earning credits on your electricity bill.
- Which states offer solar panel subsidies?
States like Rajasthan, Gujarat, and Maharashtra have some of the best solar panel government schemes offering subsidies for solar panel installations.
- Is the subsidy on solar panels available for commercial installations?
Yes, the government solar scheme also offers subsidies for commercial and industrial solar installations, although the subsidy amount may differ from residential schemes. - Can Rishika Kraf assist with the subsidy application process?
Yes, Rishika Kraf can guide you through the entire subsidy application process and handle the installation of solar panels at your home or business.
How much can I save on my electricity bills by installing solar panels?
The savings depend on the size of your solar system and your electricity consumption, but many users report saving up to 50% or more on their electricity bills after installing solar panels.
