Solar Panel Subsidy

A Solar Panel Subsidy is a government initiative designed to promote the adoption of renewable energy by reducing the upfront cost of installing solar systems. Under this scheme, homeowners, housing societies, and institutions can receive financial support from the government when they install rooftop solar panels. The subsidy makes solar energy more affordable, encourages clean energy adoption, and helps reduce dependence on conventional power sources.

In India, the Ministry of New and Renewable Energy (MNRE) offers subsidies for residential rooftop solar systems. Typically, subsidies cover 30%–40% of the total system cost, depending on system size and state-specific policies. For example, small residential systems up to 3 kW capacity may receive higher subsidy rates, while larger systems in housing societies or group housing projects also qualify under specified categories. Commercial and industrial setups generally do not receive subsidies but benefit through tax savings and net metering policies.

The solar subsidy process usually involves installation by an MNRE-approved vendor, inspection, and verification by the local distribution company (DISCOM). Once approved, the subsidy amount is directly transferred to the beneficiary’s bank account. By taking advantage of solar subsidies, households can significantly lower installation costs and enjoy long-term savings while contributing to a greener future.