Govt. Subsidy on Solar Panel Systems in India
MNRE (Ministry of New and Renewable Energy - Central Government) has set the target to install 175GW by the year 2022 under the World’s Largest Renewable Energy Expansi0oj Programme. To achieve this target Govt. has announced Rs. 5000 crore for solar subsidies only.
How much Solar Subsidy is available?
According to the latest notification by MNRE, 30% to 90% Subsidy on benchmark capital cost is available for all consumers.
• 90% On Solar Water Pumping Systems for Farmers only.
• 70% For 3 Hill States Himachal, Uttarakhand & Jammu-Kashmir only.
• 30% For all States of India.
Who can get the Subsidy on Solar?
All following consumer categories can get the Govt. Subsidy:
• Domestic: All residential home owners are eligible to get Govt. subsidy.
• Social Sector: All the registered societies, multi-storey apartments, Cooperative Group Housing Societies are eligible for Subsidy on Solar Systems.
• Institutional: All Schools, Colleges, Institutes are eligible for subsidy.
• Non-Profit Organisations: All the Non-profit organisations including Old Age Home, Orphanage etc are eligible.
Is subsidy available on all solar panel systems?
No, subsidy is only available on Made In India Solar Panels on Grid-Connected Systems. All following Systems are eligible to get the Govt. Subsidy:
• Solar Water Pumps
• On-Grid Solar System
• HYBRID Solar Systems
Tax benefit on solar
The Central Government has mandated concessions and exemptions on specific materials imported for manufacture of solar power generation products as well as for use in solar power generation projects under Section 80-IA of the Income Tax Act, 1961 the Central Government provides a 10-year tax holiday, in which the beneficiary has the freedom to choose a 10-year continuous period in the first fifteen years of the project life to avail the tax benefit. The projects are taxed using the Minimum Alternate Tax (MAT) rate.
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