Solar Subsidies
The Ministry of New and Renewable Energy (MNRE) has introduced a number of subsidies in order to promote Solar energy in India.
The following solar systems are eligible for a subsidy:
- Solar Water Pumps
- On-Grid Solar System
- HYBRID Solar Systems
Is the subsidy available to you?
The solar subsidy is available to the following categories:
| Residential | All residential buildings including group housing |
| Institutional | All schools, colleges and institutes |
| Social Sector | All Non-profit organizations including community centers, welfare homes, old age homes, orphanages etc. |
How much Solar subsidy is available?
As per the current guidelines set by MNRE, 30-90% subsidy on benchmark capital cost is available to consumers.
| % of Benchmark Cost | Applicable for |
| 30% | All other States/UTs not covered under Special States |
| 70% | Special Category States/Islands:North Eastern States including Sikkim, Uttarakhand, Himachal Pradesh, Jammu & Kashmir and Lakshadweep, Andaman & Nicobar Islands |
| 90% | Solar Water Pumping Systems for Farmers |
Step-by-Step Guide to get the MNRE Subsidy
| Step 1 | Submit a project report (entailing technical and financial details, operations and maintenance plan) along with system monitoring and reporting details to MNRE via district head of your State Nodal Agency (SNA) |
| Step 2 | MNRE evaluates your project on technical and financial points |
| Step 3 | Following approval of your project by MNRE, Open tenders are invited by your SNA and a channel partner will be selected from open bidding process |
| Step 4 | Channel Partner completes the installation process |
| Step 5 | SNA inspects your installation to ensure that only MNRE approved components are installed |
| Step 6 | The subsidy amount is released to channel partner directly from MNRE |
| Step 7 | You will be responsible for the payment of 70% of the system cost. You can choose to finance your solar plant and may work with your bank to procure finance for 70% of the system cost |