Solar Panel Subsidy: Eligibility, Key Requirements, Application Process and More  

Sun is a powerhouse of energy. Considering its inexhaustible supply and non-polluting nature, solar energy has witnessed a rapid growth in usage. In recent times, an increasing number of consumers are embracing solar power to decrease reliance on the grid and lower monthly electricity costs. To promote and support this adoption of solar energy systems, the Government of India has introduced a solar panel subsidy. 

Solar panel subsidies are financial assistance that make this renewable energy accessible to a wide range of beneficiaries, from small households to large-scale cooperative housing complexes. Subsequently, this article walks you through the eligibility criteria, the subsidy amount, the application process and more.  

Planning to install solar panels on your rooftop? Then, read on! 

What is the Solar Panel Subsidy? 

Solar panel subsidy is a financial aid to offset the cost of solar panel installations. This initiative is a part of the PM Surya Ghar Muft Bijli Yojana, also known as the Rooftop Solar Scheme. By introducing this PM solar scheme, the Government aims to equip 10 million homes in India with solar energy or to reach 600 GW of solar energy by 2030. 

Both the Central and State Governments are committed to providing these subsidies and making every home a part of this green initiative. The utilisation of this clean energy reduces the dependence on traditional electricity sources.   

What are the Reasons Behind Offering Solar Panel Subsidies?

Following are some of the reasons behind providing solar panel subsidies. Take a look: 

Less Reliance on Fossil Fuel

The Government aims to reduce dependence on non-renewable energy sources such as coal, oil, and natural gas. Incentivizing solar power not only decreases import dependency but also improves traditional energy security. 

Energy Affordability and Accessibility 

Subsidies enable consumers to afford solar energy. Thus, they can switch to cleaner energy sources and possibly reduce their electricity expenses. This is advantageous for rural or marginalised communities that may not have access to power grids.

Technological Growth 

The provision of subsidies promotes the advancement of solar technologies through research and development. It stimulates innovation and reduces the expenses associated with solar panels and related equipment.

Economic Advancement  

The growth of the solar industry leads to various employment opportunities in manufacturing, installation, maintenance and research. These opportunities serve as a driving force to facilitate the nation’s overall economic growth. 

What Are the Eligibility Criteria for Availing Solar Panel Subsidy? 

To qualify for the national solar rooftop yojana, one must meet the following conditions: 

1. The applicant must be a resident of India and has to belong to a lower-middle-class family. 
2. The annual income of the applicant must reside within ₹1.5 lakhs. 
3. Your house must have a suitable roof for an untroubled solar panel installation. A roof that is less prone to structural damage and has heavy-duty strength is ideal for solar panels. 
4. Applicants must not have availed any solar subsidy before. 
5. The solar panels must be domestically manufactured. 
6. A Government-approved company must carry out the installation process. 
7. Strict compliance with the guidelines of the Ministry of New and Renewable Energy is mandatory. 

Please note: The maximum capacity of a solar panel for availing the PM solar yojana is 10kW. Certain states, such as Uttar Pradesh, Kerala, Rajasthan, Gujarat etc, may provide additional financial aid.     

What are the Paperwork Requirements to Avail Solar Panel Subsidy? 

Here is a list of prerequisites to be eligible for solar plant subsidy: 

1. Address and identification proof
2. PAN card
3. Non-encumbrance certificate
4. Evidence of income
5. Solar rooftop quotation 
6. Bank statements 
7. Income tax returns 

Why Go Solar? 

Installing solar panels under the Government solar panel scheme can harness several benefits.   

Reduced Electricity Bills 

Solar panel installation is a one-time investment for your property. It is more affordable than thermal power production. With the constant surge of non-renewable electricity prices, powering your home using solar power will not burn a hole in your pocket. 

Independent Energy Production 

By varying the energy sources and encouraging the local production of electricity using solar power, the PM solar scheme helps to achieve greater energy self-sufficiency. Additionally, it also decreases consumers’ dependence on imported fossil fuels. 

Tax Benefits 

There are multiple state-wise tax benefits plans available for investors of solar installation. Individuals can obtain tax depreciation during the fiscal year in which the installation has taken place. Moreover, this plan also permits the investors to get tax benefits for up to 10 years.  

Greater Property Value 

Another benefit of solar panels is the improvement of property value. Installing solar panels in the property acts as an advantage which will bring greater returns while selling the site. Besides, apart from selling, homeowners can enjoy reduced utility bills for almost 30 years from the month of solar panel installation. 

Less Environmental Impact 

Using more solar energy helps decrease the release of greenhouse gases and air pollution linked to conventional energy sources. Solar panels generate environment-friendly energy without releasing carbon dioxide or other damaging pollutants. It creates a healthier environment and lessens the impacts of climate change. 

Potential Earnings 

Solar panels allow surplus electricity to be sold to the grid to generate additional income. This serves as a potential source to earn.  Additionally, the Government of India provides ₹1 for each unit of the total solar power production.

What is the Solar Panel Subsidy Amount?  

The financial support from the solar panel yojana covers as much as 40% of the installation expenses, which is based on the system’s size. Here is a basic overview: 

Capacity of the System	Receivable Subsidy Amount
Up to 2kW	₹30,000 per kW
Up to 3kW	₹18,000 per kW for supplemental capacity
Larger than 3kW	Capped at ₹78,000

How to Apply for Solar Panel Subsidy? 

The application process for rooftop solar yojana is straightforward. Here is a step-by-step guide: 

Step 1

Go to the National Portal for Rooftop Solar, log in using your credentials and, if you are new to this site, register yourself using personal details. 

Step 2

Navigate to ‘Apply for Rooftop Solar’ and click on it.

Step 3

Please select your state, district, electric utility company, customer account number, mobile phone number, and email address to fill out the form.

Step 4

Kindly Wait for your utility company to assess the strength of your roof for solar panel installation.

Step 5

If they give the go-ahead, select an accredited firm to carry out the installation of your solar panels.

Step 6

Once the installation is complete, request a net meter. Once everything is in place and inspected, you will receive a certification. 

Step 7

Sign in to the website once more and provide your banking details. 

And, that is it. The subsidy will be sent to your bank account by the government within 30 days. 

What is the Difference between State and Central Solar Panel Subsidy Schemes? 

In the state subsidy program, the customer pays the solar company the total amount minus the subsidy, and the company then claims the subsidised amount from the government. This process involves more interactions with local discoms, which may cause delays. As a result, it might take longer to complete compared to the national scheme.

Under national programs, applicants can directly register through the national portal, which offers a more consistent and unified platform. This provides direct benefits to the applicants. The subsidised amount will be transferred within 30 days of commissioning, so the entire amount should be paid directly. 

Final Words 

Hopefully, this comprehensive overview of the solar panel subsidy has met all your queries. To make solar energy more accessible and affordable, solar panel subsidy is a pivotal initiative by the Government. It serves as a strategically smart move to build a sustainable and energy-efficient future.

Frequently Asked Questions

Can I receive the solar panel subsidy for a rented house? 

Solar panel subsidies are typically available for homeowners. If you are a renter, you will have to obtain approval from your landlord. There are some state programs for renters, but these are not as principal. 

What is Sandes? 

The government of India has introduced the Sandes app to facilitate secure communication between government officials and citizens. Citizens can use this platform to register on the national subsidy portal and access the solar installation subsidy. To do so, they need to submit all necessary documents and complete the application process on the portal. 

What is PM Surya Ghar Yojana? 

PM Surya Ghar Yojana is a program by the government to offer complimentary electricity to households in India. Prime Minister Narendra Modi initiated the program on February 15, 2024. As part of the program, households will receive financial assistance to set up solar panels on their rooftops.  

When does the Solar panel subsidy period conclude? 

The subsidy for solar can be applied by households until March 31, 2026. Individuals who submit their application before this date qualify for monetary benefit. 

Why did I not receive the subsidy amount within 30 days of approval? 

In case the solar panel subsidy is not received within 30 days, you have the option to verify the status of your application on the National Portal for Rooftop Solar. In certain instances, the process may take longer, and there are various reasons for this. The vendor acting unethically or failing to submit invoices and project completion reports. Additionally, insufficient funds from MNRE can also delay the process.