Subsidies on Solar Energy in India

The solar energy is the future of energy. It is still somewhat expensive compared to conventional energy delivered through the grid. All the countries have devised some scheme to incentivise the citizens to use solar. India also has embarked on the journey. There are subsidies available on installation on solar systems in India. But as usual, there are different types of subsidies and a common citizen gets confused on these types and implications of the same. Let us try to simplify the situation.


Subsidies provided by NABARD

  1. Off grid solar system installation – This subsidy is targeted at individual home loads home lighting systems or inverter based systems. There is 20 % margin money by the individual, 30 % subsidy and 50 % bank loan at lower interest rates. The subsidy is available for approved solar modules only. The important thing is that it is for off grid application and is targeted at rural/remote areas where grid power is not available


  2. Solar Water Heating: There are subsidies or bank loan at reduced rate available for solar water heating system upto 400 litre per day. The scheme is available for all categories of the users including commercial. The subsidies depend on the state/ category of the user and the size of the system. The scheme is available only for some approved models.


  3. Water Pumping System for Irrigation Purposes



State Level Schemes

Each state may have its own schemes for providing incentives for the use of solar power.

We are putting the scheme for Haryana. In Haryana there are some rebates on the electricity bill and subsidy for water heating system for upto specific capacities. See the link for the specific details.


MNRE Schemes

  1. Subsidies for water heating / solar cooking /steam generation

 There are MNRE subsidies available on the equipment for water heating/solar cookers and steam generators. Please see the link for the details.

  1. Grid Connected Rooftop and Smart Solar Plan Programme

MNRE provides upto 30% subsidy on the rooftop solar plants upto the capacity of 500 kW peak power (kWp). The subsidy is available through state nodal agencies, SECI or though channels partners. This is the scheme which is applicable for residential societies. There is however subsidy issue with this scheme. The subsidy is available only when the money is allocated and there is no enough money allocated at present for this subsidy.

Our recommendation is that a society should consider solar power plants on its merit without subsidy. The business case should be approved without subsidy. The subsidy is available should be considered as bonus.


We can facilitate solar roof top in your society. Please let us know your requirements. We would come and carry out a survey.

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