Solar Energy and Government Incentives: How to Take Advantage of Subsidies and Rebates

Oct 3, 2024

4 min read

Transitioning to solar energy not only reduces electricity bills but also contributes to a greener environment. With the Indian government’s strong push towards renewable energy, especially solar, homeowners and farmers can take advantage of several schemes that make installing solar panels more affordable.

These incentives, rebates, and subsidies can significantly lower the upfront costs, making solar energy accessible to more people. Let’s explore various solar energy schemes in India and guide you through the steps to take full advantage of them.

Different Government Schemes Related to Solar Energy in India

The Indian government has introduced numerous schemes that offer financial support and subsidies to encourage the adoption of solar energy. These schemes are designed to help farmers, rural areas, and low-income households transition to clean energy.

Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM KUSUM)

The PM KUSUM scheme is a flagship program for farmers. It aims to install solar pumps and grid-connected solar power plants, reducing the dependency on traditional electricity sources and diesel for irrigation.

Components of PM KUSUM:

Component A: Setting up decentralized solar power plants for grid-connected farmers.
Component B: Installing solar-powered pumps for irrigation, reducing the need for expensive diesel or electricity.
Component C: Converting existing agricultural pumps into solar-powered ones.

Farmers can enjoy subsidies covering up to 60% of the total cost, making solar adoption more affordable. It also allows them to sell surplus electricity generated by their solar power systems back to the grid, offering an additional income stream.

New Solar Power Scheme for PVTG Habitations/Villages under PM JANMAN

In an effort to electrify remote and marginalised communities, the government introduced the New Solar Power Scheme under PM JANMAN. This scheme is specifically tailored for Particularly Vulnerable Tribal Groups (PVTGs), who often live in hard-to-reach areas.

Key Benefits:

Free or heavily subsidised solar power systems for villages and habitations where conventional grid electricity is not available or feasible.
Solar street lights, home lighting systems, and water pumping systems provided at almost no cost to these communities.

This initiative ensures that even the most isolated villages can benefit from clean and reliable solar energy, greatly improving their quality of life.

PM Surya Ghar: Muft Bijli Yojana

The PM Surya Ghar scheme, often referred to as the Muft Bijli Yojana, is another ambitious initiative aimed at providing free solar power to low-income households. It focuses on urban and semi-urban areas, where electricity bills can be a significant financial burden.

Key Highlights:

This scheme not only provides energy independence to economically weaker sections but also promotes sustainability by using solar power instead of conventional energy sources.

Free installation of solar panels for households with limited or no access to electricity.
Targeted towards households in urban slums or rural areas with unreliable power supply.
Households can generate enough electricity to meet their daily needs and reduce their monthly utility bills.

This scheme not only provides energy independence to economically weaker sections but also promotes sustainability by using solar power instead of conventional energy sources.

State-Specific Subsidies and Rebates

In addition to central government schemes, many state governments also offer subsidies and incentives for solar installations. States like Gujarat, Maharashtra, Rajasthan, and Tamil Nadu have specific programs designed to boost solar adoption:

Gujarat Solar Power Policy: Gujarat offers 40-50% subsidies on rooftop solar installations, with a focus on residential and small commercial users.
Maharashtra Solar Policy: Provides subsidies of up to 40% for residential rooftop solar systems and offers net metering facilities, allowing users to sell excess power back to the grid.
Rajasthan Solar Subsidy: Rajasthan provides incentives under the Solar Energy Policy 2019, where the state government covers up to 30% of the total installation cost for residential and agricultural solar projects.
Tamil Nadu Solar Policy: Tamil Nadu offers subsidies ranging from 20-40% for residential and commercial solar installations, along with favorable net metering policies.

Each state has its own set of rules and eligibility criteria, so it’s essential to check the specific offerings available in your state.

Steps to Take Advantage of Incentives

Now that you know about the schemes available, here’s a step-by-step guide to ensure you can take full advantage of solar energy incentives and rebates.

Research Available Incentives

Start by researching the central government and state-specific incentives available in your region. Visit official government websites or consult with your local solar energy provider for the latest updates on schemes like PM KUSUM, PM Surya Ghar, or state-level rebates. Each program will have specific eligibility criteria, such as the size of the system, whether it’s for agricultural, residential, or commercial use, and the location.

Gather Required Documentation

Once you’ve identified the scheme you qualify for, the next step is to gather all necessary documents. These typically include:

– Proof of identity (Aadhaar card, voter ID)

– Property ownership documents

– Utility bills

– Bank account details for subsidies

– Application forms specific to the scheme

Apply for Incentives

After gathering the necessary documents, you’ll need to apply for the scheme. Most schemes allow you to apply either online through government portals or through local authorities. For instance:

PM KUSUM applications can be submitted through the Ministry of New and Renewable Energy (MNRE) portal.
For state-specific subsidies, you can approach the State Nodal Agencies (SNAs) responsible for renewable energy projects.

Ensure that your application is complete and accurate to avoid delays.

Work with a Reputable Solar Installer

Choosing the right solar installer is critical to the success of your solar project. A reputable installer can help you navigate the paperwork, ensure proper installation, and make sure your system is eligible for government incentives. They can also guide you on benefits like net metering and maintenance contracts.

Look for solar companies with experience in handling government schemes, proper certifications, and good customer reviews.

Conclusion

The shift to solar energy is not just an environmental decision but a financially sound one, especially with the various government incentives available in India. From PM KUSUM to the Muft Bijli Yojana, the opportunities for homeowners, farmers, and rural communities to adopt solar power are immense.

By researching available incentives, gathering the right documentation, applying correctly, and working with a trusted installer, you can take full advantage of solar energy’s benefits. JJ PV Solar stands ready to assist you in making the right decision for a bright future. Start your solar journey today, and join India’s clean energy revolution.