Solar Panel Subsidies in India: How to Save More on Installation

Solar Panel Subsidies in India: How to Save More on Installation

As the world transitions towards sustainable energy, the Indian government is actively promoting solar energy adoption through generous subsidies and incentives.

If you’re planning to install a solar system, understanding these subsidies can help you save a significant amount of money.

In this comprehensive guide, we’ll cover current solar subsidies available in India (2025 update), eligibility criteria, how to apply, and tips for maximizing your savings. 🌞

1. Why Government Subsidies for Solar Matter

Solar energy systems involve a considerable upfront investment. While the long-term benefits are undeniable, the initial cost can be a hurdle.

Government subsidies:

• Lower the initial investment barrier for homeowners and businesses.
• Boost solar adoption in urban and rural areas alike.
• Accelerate India’s goal of achieving 500 GW of non-fossil fuel energy capacity by 2030.

Good news: Solar has never been more affordable — and subsidies are a big reason!

2. Key Solar Subsidy Programs in India (2025)

A. National Solar Rooftop Portal (MNRE Central Subsidy)

The Ministry of New and Renewable Energy (MNRE) offers central financial assistance (CFA) for rooftop solar installations.

Latest Subsidy Rates (2025):

• Up to 3 kW system: 40% subsidy on benchmark cost.
• Above 3 kW and up to 10 kW: 20% subsidy for remaining capacity.
• Group Housing Societies (GHS)/Residential Welfare Associations (RWA): Subsidy for common facilities at 20%.

✅ Applicable only for residential customers (individual houses, apartments, housing societies).

✅ Must apply through the National Solar Rooftop Portal and hire empaneled vendors.

B. State-Level Solar Subsidies

Several Indian states provide additional subsidies over and above the MNRE central scheme.

🌟 Tip: Always check your local state renewable energy department for the latest announcements!

C. PM-KUSUM Scheme (For Farmers)

The PM-KUSUM (Kisan Urja Suraksha evam Utthaan Mahabhiyan) scheme offers:

• 60% subsidy for setting up solar pumps.
• 30% loan provision.
• 10% farmer’s contribution only.

✅ Targeted at agricultural solarization, reducing diesel dependency.

3. How to Apply for Solar Subsidies

Step-by-Step Process:

1. Visit the official National Solar Rooftop Portal.
2. Register your application with property and ID proof.
3. Select a DISCOM-approved/empaneled vendor.
4. Install the solar system after receiving approval.
5. Get inspection done by DISCOM authorities.
6. Subsidy amount credited directly to your bank account post-installation!

✅ Note: Installation must be done only by registered vendors to claim subsidy benefits.

4. Important Documents Required

• Proof of property ownership (Property Tax Receipt/Registry)
• Latest electricity bill
• Aadhar Card copy
• Bank account details (for subsidy transfer)
• Photographs of installation (post-completion)

5. Savings Calculation Example

Scenario:

• You install a 5 kW rooftop solar system.
• Benchmark cost = ₹48,000 per kW (approx).
• Total system cost = ₹2,40,000.

Eligible Subsidy:

• First 3 kW @ 40% subsidy → ₹57,600.
• Remaining 2 kW @ 20% subsidy → ₹19,200.
• Total subsidy = ₹76,800.

Net Cost after Subsidy:

• ₹2,40,000 - ₹76,800 = ₹1,63,200.

✅ Over ₹75,000 saved instantly!

6. Common Myths About Solar Subsidies

🔹 Myth: Subsidy is only for rural customers.
👉 Fact: Urban households are equally eligible under the MNRE scheme.

🔹 Myth: Commercial setups can claim central subsidies.
👉 Fact: Central subsidies are primarily for residential users, not commercial spaces.

🔹 Myth: The application process is too complicated.
👉 Fact: It’s now fully online and user-friendly!

7. Why Choose Rhine Solar Limited

🔹 Assistance in subsidy application and approvals.
🔹 Empaneled with various DISCOMs across India.
🔹 End-to-end installation and after-sales service.
🔹 Premium-quality panels and inverters.
🔹 Real-time monitoring and warranty support.

🌟 Going solar with Rhine Solar makes the subsidy process effortless!

Conclusion

Solar energy is the future — and solar panel subsidies make it affordable today!

If you’re thinking about making the switch, 2025 is the perfect time to grab generous government incentives.

✅ Slash your installation costs, start saving on electricity bills, and contribute to a greener planet.

Rhine Solar Limited can guide you through every step of your solar journey — including navigating subsidy applications seamlessly.

🌞 Make the smart move today. Contact Rhine Solar for a FREE consultation!