Solar Energy Incentives and Rebates in India: What You Need to Know
Solar energy is an increasingly popular source of renewable energy and for a good reason. It’s clean, abundant, and renewable, making it a sustainable option for powering homes and businesses. However, when any thinks of installing a solar panel, their first thought revolves around the pricing of the solar system and the subsidy schemes of solar panels.
In India, the government has recognized the potential of solar energy and has taken steps to incentivize its use. Owing to the various rebates and offers available for the implementation and installation of solar energy, there is a sharp increase in the number of households and businesses adopting solar energy, which not only benefits the environment but also helps save on electricity bills.
In this article, we’ll take a look at some of the solar energy incentives and rebates available in India and what you need to know about them.
What is the Indian government’s plan for solar subsidies, rebates, and incentives?
India is vociferously investing towards implementing renewable forms of energy, one of them being solar energy. As the country’s solar providers, such as SunAlpha perfect their solar panels, it empowers India to fulfill its target of 280GW solar panels by 2030, which translates to 10GW every year. In the likes of the same, the Indian government has undertaken new initiatives to install solar panels at residential and commercial buildings and provide incentives to both property owners, DISCOMS, and Chanel partners.
What are the available solar energy incentives and rebates in India?
Let’s look at the incentives and rebates that the government of India offers to popularise and expedite the adoption of solar energy in the country.
#1: Central Government Schemes
The central government of India has implemented several schemes to promote the use of solar energy across the country. One of the most significant schemes is the Solar Rooftop Photovoltaic (PV) Subsidy Scheme, which offers a subsidy of up to 40% for residential and institutional solar installations. Under this scheme, households, schools, hospitals, and other institutions are eligible to receive a subsidy for installing solar panels on their rooftops.
Another central government scheme is the Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM) scheme, which aims to promote the use of solar energy in the agricultural sector. The scheme offers a subsidy for the installation of solar-powered water pumps and encourages farmers to generate their electricity using solar panels. The scheme aims to install 10,000 MW of solar capacity by 2022, which will not only help farmers save on electricity bills but also reduce carbon emissions.
#2: State Government Schemes
In addition to central government schemes, many state governments in India have also introduced their incentives and rebates for solar energy. For example, the Gujarat government offers a 40% subsidy for residential solar installations, while the Tamil Nadu government offers a 20% subsidy for commercial and industrial solar installations.
The Delhi government has launched the Solar Energy Policy 2016, which aims to generate 1 GW of solar power by 2020. The policy offers incentives for installing solar panels on rooftops, as well as for the purchase of solar water heaters and pumps.
#3: Net Metering
Net metering is a system where solar panel owners can sell the excess electricity they generate back to the grid. This means that households and businesses can not only generate their electricity but also earn money by selling the excess energy they produce. In India, net metering is available in most states, and the rates vary depending on the state and the time of day.
#4: Renewable Purchase Obligation
The Renewable Purchase Obligation (RPO) is a policy that requires power distribution companies (DISCOMs) to purchase a certain percentage of their power from renewable sources. This means that DISCOMs must buy a certain amount of solar energy from solar panel owners, which creates a demand for solar energy and incentivizes the use of renewable sources.
#5: Goods and Services Tax (GST) Benefits
The Indian government has also introduced several GST benefits for solar energy. Solar panels, solar cells, and solar inverters are exempt from GST, which means that households and businesses can save money on these items. Additionally, the GST on solar-powered devices such as lamps and streetlights has been reduced to 5%, making them more affordable for households and municipalities.
#6: Accelerated Depreciation
The government also offers accelerated depreciation on solar energy investments, which allows businesses to claim a higher depreciation rate on their solar installations. This means businesses can save on taxes and recoup their investments faster, making solar energy a more attractive investment option.
Towards a renewable and Solar Future
The incentives and rebates mentioned above are just some of how the Indian government is promoting the use of solar energy. These incentives not only help households and businesses save money on electricity and also help safeguard the environment. If you wish to know more about solar energy adoption, connect with the experienced professionals and specialists of SunAlpha.