What Government Incentives are Available for Solar Energy?

India has made incredible strides made in building its renewable energy sector over the last two decades. In recent years, the Indian government has been actively promoting the use of solar energy through various incentives and rebates. As the nation grapples with increasing energy demand and environmental concerns, solar power has emerged as a game-changer, […]India has made incredible strides made in building its renewable energy sector over the last two decades. In recent years, the Indian government has been actively promoting the use of solar energy through various incentives and rebates. As the nation grapples with increasing energy demand and environmental concerns, solar power has emerged as a game-changer, providing a sustainable solution for power generation. This article elaborates on the Indian government’s commitment to renewable energy and uncovers the wealth of government incentives for solar energy offered for a sustainable tomorrow. Subsidies & Government Incentives for Solar Energy –      A Sustainable Path for India Harnessing solar power is crucial today due to the increasing energy demands and environmental concerns. Solar energy reduces our dependency on fossil fuels and clearly helps combat climate change. Understanding the crucial importance of solar energy, the Indian government has introduced several initiatives to incentivize the adoption of solar panel systems. The Indian government offers a solar subsidy scheme to accelerate the installation of solar power systems. These Central Financial Assistances (CFA) and subsidy schemes financially support individuals and businesses to switch to solar energy by reducing the initial investment and encouraging a faster return on investment. Net Metering Net metering is an essential policy that promotes solar energy generation. Individuals who have installed solar power systems at home need to have smart meters that monitor how much power was generated at home and how much was drawn from the electricity grid. This enables such owners to supply excess power back to the grid. They earn credits for this returned electricity, which can be utilized to offset their electricity bills and enhance the financial viability of solar energy systems. Solar Rooftop Programme The Solar Rooftop Programme by the Indian government aims to enable residential homes and commercial organizations to generate their own solar energy. Both central and state governments offer subsidy schemes to individuals for installing solar rooftop systems. The central government pays a 20-40% subsidy for these projects and also enables financial assistance through banks and technical aid to install rooftop solar panels. By leveraging rooftop space, solar power will be easily accessible and scalable in residential and commercial settings. Capital Subsidy for Off-grid Solar Systems Due to India’s vast geography, remote areas do not have access to grid connectivity. To address this challenge, the government initiated a scheme of capital subsidies for off-grid solar systems. These capital subsidies will help individuals and communities in remote regions establish independent solar power systems. It will improve electricity access, fostering social-economic development. Particularly under the PM KUSUM scheme, individual farmers are supported to install standalone solar Agriculture pumps of capacity up to 7.5 HP in off-grid areas, where grid supply is not available. CFA of 30% of the benchmark cost of the stand-alone solar agriculture pump will be provided. Similarly, state governments provide another subsidy of 30%, while the remaining 40% needs to be paid by the farmer. Bank loans can be availed by farmers, enabling them to initially pay only 10% of the total cost. GST Benefits To ensure solar energy is affordable, the Indian government provides Goods & Services Tax (GST) benefits on all solar equipment and services. This reduces the overall cost of solar installations, making them more economically viable for consumers. The reduced GST rates encourage the adoption of solar energy across various sectors. Solar Parks and Ultra Mega Solar Power Projects To boost solar power generation on a much larger scale, the Indian government has established solar parks and ultra mega solar power projects. These initiatives build dedicated zones for solar energy development, attracting investments and promoting efficient utilization of resources. Under the scheme, the Ministry of New and Renewable Energy (MNRE) provides CFA of up to INR25 lakh per solar park for the preparation of detailed project reports. The government offers infrastructure support, including land acquisition and transmission facilities, to facilitate the implementation of these projects. Seize the Solar Opportunity By capitalizing on these government incentives for solar energy, India can make significant strides toward achieving its renewable energy targets and creating a greener future for all. As the national focus on renewable energy intensifies, government incentives and rebates for solar energy adoption have become valuable tools for enabling an energy-independent India. However, it is essential to note that these initiatives and their availability may vary from region to region. Research thoroughly and consult with experts to make an informed decision.