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Solar Panel Subsidy in India [2021 - Updated]

17th May 2021  

Today India is one of the leading countries with the highest rate of Solar Panel installations globally. This green initiative has led to a revolutionary change where each of us contributes our grain of sand to the preservation and care of the environment surrounding us.

Moreover, it helps in avoiding Co2 emissions into the atmosphere, unlike what happens when energy is obtained from the combustion of non-renewable sources such as oil or coal, an issue that is increasingly sought in all areas and sectors.

What is a solar subsidy?

Our Indian government has made several efforts to increase the use of solar panels in residential and commercial sectors. To make this initiative more effective, the government has started the solar subsidy scheme to install solar panels as financial aid. This subsidy for self-consumption allows a saving in your installation of between 40% and 50%.

These grants, intended mainly for installations in single-family homes or neighborhood communities, can be requested by anyone who wants to install solar panels in their home.

How much is the subsidy?

  • 40% for capacity up to 3 kWp
  • 20% for capacity for more than 3 kWp and up to 10 kWp
  • 20% for GHS/RWA capacity up to 500 kWp. It is limited to 10 kWp per house and total up to 500 kWp.

How to avail of the subsidy?

In central term, the benefits are referred to as CFA - Central Financial Assistance. Customers who wish to get the benefits have to approach Power Distributing companies (DISCOMs) in his/her area, as this government scheme is to be implemented through the state (DISCOMs).

You can apply for the solar panel installation both online and offline as well, or you can contact the respective power distribution company (DISCOM) in your state.

Solar panel subsidy in India

With this increasing amount of solar panel installations in India, here are some essential points to note about the subsidy scheme in different states, along with some necessary details.

  1. Solar Panel Subsidy in Uttar Pradesh, 2021
  2. Uttar Pradesh is one of the top states in installing solar panels to save our non-renewable sources. The state government has declared a subsidy of Rs. 15,000 per kW for the residential installations. Here are some details regarding the subsidy in the state.

    • State subsidy amount- Rs. 15,000-20,000 Up to 10kW
    • Rooftop solar system size- Up to 10 kW

  3.  Solar Panel Subsidy in Kerala, 2021
  4. Kerala has aimed to turn the homes into power stations by installing solar panels in every house possible. So before the installation, here are some details provided by the state government.

    • State subsidy amount- 40% for first 3 KWp 20% for each additional KWp up to 10kW
    • Rooftop solar system size- Up to 10 kW

  5. Solar Panel Subsidy in Maharashtra, 2021
  6. In Maharashtra, the solar subsidy is done by the MEDA, helping people get easy installations of solar panels by assisting them financially over subsidy. Here is some information related to the installation.

    • State subsidy amount - 30% of the standard cost
    • Rooftop solar system size - Up to 10 kW

    You can apply by visiting the online site of MEDA for solar panel installation.

  7. Solar Panel Subsidy in Haryana, 2021
  8. Haryana is significantly contributing its bit towards building earth a better place for our future generation by many solar panel installations. Below is the necessary information regarding the same.

    • State Subsidy amount- 30% of the standard cost
    • Rooftop solar system size- Up to 10 kW

    You can apply by visiting the online site of HAREDA and submit the application for the solar panel installation.

  9. Solar Panel Subsidy in Bihar, 2021

    Bihar government has joined this green venture and provides the necessary subsidy over solar panel installation in the state. Here is some information you should know before installing the solar panel.

    • State Subsidy amount- 25% subsidy over the installation cost
    • Rooftop solar system size- minimum 1kW

BREDA manages the solar panel subsidy in Bihar. You can apply online for prompt installation by visiting their site.

You can also read: Solar Financing Options: How To Find The Best Solar financing?

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