Subsidy
Solar subsidy in India
To boost the usage of solar energy in the residential sector, India has a solar subsidy programme in place. It reduces the financial burden of installing solar panels, by providing financial assistance to consumers.
With this incentive, residential consumers can save up to 60% of their installation cost. Moreover, individuals from across the country can apply for these grants. But how much is the incentive and how can individuals claim it? Let’s understand it further.
How much is the Solar Subsidy in India?
The details are as follows:
Solar energy systems with a capacity of up to 2 kW are eligible for a subsidy of up to ₹30,000/ kW.
For a system capacity of 3kW, consumer can avail a subsidy of ₹78,000.
For all system capacities exceeding 3kW, a fixed subsidy of ₹78,000 will be provided.
The CFA is calculated based on either the module capacity or the inverter capacity, whichever is lower.
Apart from this, certain Indian states such as Jammu and Kerala also provide their own separate state solar subsidy in addition to the CFA to promote clean energy adoption.
However, as the government moves towards a uniform solar subsidy, there is limited clarity on how long such state-specific incentive schemes will be in place.
Note: This is the revised subsidy structure announced under the newly launched Surya Ghar Yojana. Consequently, this CFA is available to only those consumers who apply for rooftop solar after 13th February 2024.
For the individuals who submitted their application before 13th February 2024, the previous CFA structure (incentive of up to ₹18,000/kW) will be applicable.