Post By
Anish

Subsidies on Solar Panels in India

November 22, 2020

A lot of people have absolutely no information regarding this topic, and in this section we wish to correct that mistake. Solar panels are subsidized to varying degrees by the government in India, in order to encourage the use of sustainable living standards that are consistent with our age-old traditions and beliefs of living in harmony with our natural environment. 

 

This subsidy works in a very simple and efficient manner. In order to give people added inducements and incentives to permanently shift to sustainable patterns of energy consumption and production, the government provides financial support for the installation of solar panels in residential homes. This transforms the home into a completely self-sufficient clean energy environment, that acts a great relief to the natural surroundings and contributes to less pollution. 

There are mainly three different types of subsidies available, which can be used to make the solar energy transition. 

 

1. Residential Home Owner Subsidy 

The first is the customer benefits, which are only applicable to residential home owners who wish to make the big investments required to instal solar panels. The solar energy system requires big investments, and the subsidy acts as a welcome relief to people who are ready and willing to make that investment. 

 

If you install the solar panels using the government subsidy, you will also get a 5 year warranty on your panels from the solar system installation company. 

 

2. Channel Partner Benefits Subsidy

The second kind of subsidy is the channel partner benefits - which are explicitly designed to tackle the issues surrounding the trouble faced by common individuals to avail these subsidies. Once the channel partner comes into the picture, they themselves work to sort out the various elements of the government subsidies. 

 

3. DISCOMS Benefits Subsidy

DISCOMS Benefits constitute the last viable method to get the most out of the government subsidy, so that all parties involved can be happy. The customer is entitled to his or her financial aid on the one side, whereas the channel partner is pleased to add another new customer to the books. And of course, the government is happy, because it is one step closer to reaching its target by encouraging the use of solar panels, which will help in reducing emissions and ensuring a clean better environment for all. 

 

Subsidy Demerits 

As far as the subsidy demerits are concerned, we have found different demerits which we would like to mention clearly for your knowledge. The only major problem with general customer government subsidies is that you will be in a position where you cannot install the best solar panels from some of the most well known international popular brands. These include brands such as Loom Solar, Luminous, Microtek, Exide, Enphase, Solar Edge, etc.

 

As far as the channel partner benefits are concerned, here also, we can find different demerits. The first obvious demerit that we have discovered by speaking with many industry experts, is that the high level of initial investment required, often turns out to be a serious issue. 

 

State Subsidy Schemes 

We would also like to briefly touch upon some of the unique aspects of this subsidy scheme in different states of India, and what are the features exclusive to particular states. 

 

We will start off with the state of UP, and although it is one of the most backward states in India, the government there has adopted an aggressive subsidy scheme to transform the state into an eco friendly state as early as possible. The government has announced a healthy 15000 to 20000 overall subsidy amount per KW for rooftop residential projects. It also has the mechanism in place for online application, which makes the entire process a lot more easy and quick to finish off. 

 

Next, we come to the state of Kerala, which has been pushing ahead with its green energy initiatives as a coastal state. The state subsidy amount is the balance that is left after all consumer payments as well as CFA. The size of the rooftop solar panel system can be up to a maximum of 10kW. Like in UP, Kerala has also managed to set up a robust and highly efficient online application system, that is very useful throughout the entire process. 

 

The state of West Bengal, which has always shown the way in terms of progressive solar energy transitions, has actively sought to promote the use of sustainable and clean energy systems. The state government-owned WEBEL was one of the first solar panel manufacturing units in India. West Bengal has a mandatory rule that requires all housing societies to derive a minimum of 1.5 percent of their total electricity load. 

 

Next we come to Maharashtra, which has also become renowned as a hub of initiating solar panels. The solar project in the state is managed by the MEDA, and it has managed to get the fourth-highest installed rooftop solar power generation capacity across the country. The state government in Maharashtra is also looking at new and innovative policies designed to encourage the use of solar panels in cottage and micro industries, which is another powerful initiative. 

 

If you are looking to install solar panels for a grid-connected rooftop solar power plant, you will get a subsidy of around 30 percent of the total cost - which is a very good deal and gives you a good incentive to invest in renewable energy forms. The CFA can be availed by a host of different parties including schools, health institutions, etc. as well as organizations engaged in the social sector. 

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