Government subsidies and incentives play a crucial role in making solar energy affordable for Indian consumers. This article provides the latest updates on solar subsidies available in 2024 from both central and state governments.
Central Government Subsidies
The Ministry of New and Renewable Energy (MNRE) continues to offer significant subsidies for rooftop solar installations:
Residential Sector:
- 40% subsidy for systems up to 3 kW capacity
- 20% subsidy for systems between 3 kW and 10 kW
- Subsidy available only for installations by empaneled vendors
- Additional 10% subsidy for installations in northeastern states
Commercial and Industrial Sector:
- No direct capital subsidy
- Accelerated depreciation benefit of 40% on solar assets
- Exemption from paying electricity duty in many states
- Concessional customs duty on imported components
State-Specific Subsidies
Many states offer additional incentives beyond central government subsidies:
Delhi:
- Generation-based incentive of ₹2 per unit for first three years
- Single-window clearance system for faster approvals
- No approval needed from building construction committee
Gujarat:
- Additional subsidy of ₹10,000 per kW for residential installations (up to 2 kW)
- Exemption from electricity duty for self-consumption
- Special incentives for farmers under Suryashakti Kisan Yojana
Maharashtra:
- Additional subsidy of 5% for residential consumers
- Property tax rebate in certain municipalities
- Special incentives for agricultural solar pumps
Tamil Nadu:
- Capital subsidy of ₹20,000 per kW for domestic consumers
- 100% electricity tax exemption for 5 years for industries
- Special tariff for solar irrigation systems
How to Apply for Subsidies
The process for availing subsidies has been streamlined in 2024:
- Select an MNRE-empaneled vendor (like Solight)
- Submit application through the National Portal for Rooftop Solar
- Technical feasibility assessment by local DISCOM
- Installation of solar system after approval
- Joint inspection by DISCOM after installation
- Subsidy directly transferred to your bank account
New Initiatives for 2024
Several new initiatives have been announced for 2024:
- PM Surya Ghar Muft Bijli Yojana: Targeting 1 crore households with enhanced subsidies
- Solar Parks Scheme Extension: Additional 25 GW capacity with new incentives
- Green Energy Open Access: Reduced limits for open access to green energy
- Production Linked Incentive (PLI): Enhanced scheme for domestic manufacturing
Eligibility Criteria
To be eligible for subsidies, installations must meet these criteria:
- System must be installed by an MNRE-empaneled vendor
- Only grid-connected systems are eligible (except in special cases)
- Solar modules must have BIS certification
- Inverters must comply with specified technical standards
- Consumer must have a regular electricity connection
Conclusion
The solar subsidy landscape in 2024 offers significant financial benefits for consumers looking to adopt solar energy. With combined central and state subsidies, the payback period for residential solar installations has reduced to as little as 3-4 years in many regions. At Solight, we help our customers navigate the subsidy application process seamlessly, ensuring they receive all eligible benefits.
