Subsidies

Empowering a Clean Energy Future

India’s transformation in renewable energy over the past decade has been remarkable. Backed by focused policies and government subsidies, India has emerged as a global leader in the widespread adoption of solar energy. In particular, rooftop solar installations have gained significant traction among households, commercial entities, and agricultural sectors seeking to reduce their dependence on fossil fuels while cutting down on rising energy costs.

As per recent data, India’s installed solar capacity soared to an impressive 89.4 GW by August 2024, marking a 30-fold increase in just nine years. With a potential to harness a staggering 748 GWp of solar power, the possibilities for further expansion are enormous. This aligns with India's commitment at COP26 to reach 500 GW of non-fossil fuel-based energy by 2030—making it among the most ambitious clean energy goals worldwide.

A crucial component driving this transformation is the availability of subsidies for solar panels. Various Central Financial Assistance programs, tax incentives, and targeted initiatives like the PM Surya Ghar Muft Bijli Yojana and the PM-KUSUM Scheme make the journey to a clean energy lifestyle more affordable and accessible. This page outlines how our company—HKS Energy Solutions—can assist you in leveraging these government subsidies to maximize savings and accelerate your switch to renewable energy.

Government of India Solar Subsidies

An Overview of India’s Solar Subsidy Landscape

Before diving into specific schemes, it's essential to understand what a solar subsidy entails. In simple terms, a government subsidy for solar panels is a monetary incentive—either in the form of direct grants, tax benefits, or reimbursements—aimed at encouraging more people to adopt renewable energy solutions like rooftop solar. These programs are typically administered by the Ministry of New and Renewable Energy (MNRE) and supported by respective state discoms or local electricity boards.

The overarching objective is two-fold: to reduce the initial cost burden on potential solar adopters and to accelerate India's transition to an energy-efficient, low-carbon economy. Whether you are a homeowner with an interest in rooftop solar solutions or a farmer keen to solarize your irrigation pumps, there is likely a government subsidy tailored to your needs.

India’s significant success in expanding its solar capacity is partly attributed to strategic policies, simplified processes for availing financial assistance, and the unwavering commitment to reduce greenhouse gas emissions. Below, we break down the major subsidy programs currently in place and how HKS Energy Solutions can help you access these benefits.

PM Surya Ghar Muft Bijli Yojana

1. PM Surya Ghar Muft Bijli Yojana

The PM Surya Ghar Muft Bijli Yojana stands out as a pivotal scheme for rooftop solar adoption among Indian households. This initiative proposes attractive subsidies that can cover up to 60% of the project cost for systems up to 2 kW. For systems ranging from 2 kW to 3 kW, subsidies of around 40% are available. Benefits usually cap at 3 kW, encouraging widespread rooftop solar installations within a feasible range.

On average, households consuming up to 300 units monthly can save up to ₹15,000 a year, making solar power not just an environmentally responsible choice but a financially rewarding one. Moreover, if you generate surplus power, you may earn additional income through net metering arrangements, further enhancing the overall viability of your investment.

HKS Energy Solutions’ Role: We streamline the application process for the PM Surya Ghar Muft Bijli Yojana on behalf of our clients. From registering on the official pmsuryaghar.gov.in portal to coordinating site inspections, our team ensures you receive the maximum subsidy benefit with minimal hassle. The scheme’s budget of ₹75,021 crore until 2026-27 underscores the government’s long-term commitment to fostering solar adoption in residential sectors.

Grid Connected Rooftop Solar Programme by MNRE

2. Grid Connected Rooftop Solar Programme

Under the aegis of the Ministry of New and Renewable Energy (MNRE), the Grid Connected Rooftop Solar Programme is among India’s most expansive initiatives aimed at encouraging rooftop solar installations. Its principal goal is to install 40,000 MW of solar power by 2026, largely focusing on the residential segment.

The program provides Central Financial Assistance (CFA) that typically covers 40% of the cost for rooftop solar systems up to 3 kW in capacity and around 20% for systems between 3 kW and 10 kW. Multi-family housing societies can also access subsidies for communal installations in shared spaces, enabling all residents to benefit from lower electricity bills and a smaller carbon footprint.

Application & Approval: Residents can apply through the National Portal for Rooftop Solar or state DISCOM portals. Upon installation and successful inspection, the subsidy amount is usually credited directly to the beneficiary’s bank account. This policy effectively reduces the overall cost of solar panels and accelerates payback periods.

HKS Energy Solutions’ Role: Our comprehensive service includes evaluating your rooftop, designing an optimal system, and guiding you through the subsidy documentation. We collaborate with local DISCOMs to ensure seamless approval of your application and transparent disbursal of government incentives.

PM-KUSUM Scheme for Farmers

3. PM-KUSUM Scheme

Launched in March 2019, the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) Scheme significantly supports Indian farmers by offering an avenue to solarize agricultural practices. Designed to enhance both energy security and water security, this program comprises three core components:

  • Component A: Installation of small-scale, decentralized solar power plants up to 10,000 MW capacity on farmers’ fallow or cultivable lands.
  • Component B: Deployment of standalone off-grid solar pumps (around 14 lakh units) in regions lacking reliable grid connectivity.
  • Component C: Solarizing approximately 35 lakh grid-connected agricultural pumps to reduce electricity consumption and lower farmers’ operational costs.

Subsidy & Incentives: Farmers can receive up to 30% Central Financial Assistance for their solar installations, with the figure climbing to 50% in certain areas. The scheme also offers incentives for DISCOMs to procure surplus power generated, thereby supplementing farmers’ incomes.

HKS Energy Solutions’ Role: We help farmers select the most suitable solar pump or solar power system configuration based on their geographic and agricultural requirements. Our services include feasibility analyses, system design, and the paperwork for claiming subsidies and selling excess power back to the grid, thereby offering a holistic approach to solar farm management.

Production Linked Incentive (PLI) Scheme for Solar Manufacturing

4. Production Linked Incentive (PLI) Scheme: National Programme on High Efficiency Solar PV Modules

The Production Linked Incentive (PLI) Scheme forms the cornerstone of India’s drive toward indigenizing the manufacturing of high-efficiency solar PV modules. With an investment outlay of Rs. 24,000 crore, this initiative aims to reduce reliance on imported solar components, while boosting local manufacturing capabilities to gigawatt scale.

The scheme employs a competitive bidding structure to incentivize companies that demonstrate higher efficiency modules and use domestically sourced materials, aligning with the Atmanirbhar Bharat vision for self-reliance. By fostering technological advancements, the policy is expected to create new job opportunities and fortify India’s energy security.

HKS Energy Solutions’ Role: Although the PLI Scheme primarily targets manufacturers, downstream consumers—such as businesses installing large-scale solar projects—benefit from enhanced availability of cost-competitive, high-quality solar modules. We partner with top-tier, domestically certified manufacturers to deliver best-in-class solutions, ensuring that our clients receive modules backed by reliable warranties and robust technical support.

Who Can Avail Government Subsidies for Solar Panels?

A common query we receive pertains to the eligibility criteria for solar panel subsidies. The short answer is that a broad range of individuals and organizations may qualify, including:

  • Homeowners: Those who own the property and meet certain energy usage or location-specific requirements can apply for direct subsidies or capital incentives.
  • Businesses: Commercial buildings, offices, and industrial units often qualify under state or central programs aimed at reducing carbon emissions in the industrial sector.
  • Housing Societies: Cooperative housing societies seeking communal rooftop solar installations can also leverage specialized grants or higher subsidy rates for shared infrastructure.
  • Farmers: Under programs such as PM-KUSUM, farmers benefit from subsidies to solarize their pumps or install small-scale power plants on agricultural land.
  • Manufacturers & Large-Scale Projects: For those involved in large utility-scale solar farms or manufacturing solar modules, the PLI Scheme and other government policies offer incentives to encourage the development of a robust, local supply chain.

To determine your eligibility and the most suitable subsidy scheme, it is critical to consult with an MNRE-approved installer or a knowledgeable consultancy service like HKS Energy Solutions.

Process for Availing Solar Subsidies

The Process: How Our Company Helps You Secure Subsidies

Navigating through subsidy applications and the associated paperwork may appear daunting at first. However, HKS Energy Solutions offers end-to-end assistance to ensure you tap into every available government benefit:

  1. Initial Consultation & Eligibility Check:
    We begin by examining your energy consumption profile, property feasibility, and location-specific regulations. This stage helps us determine which subsidy schemes best suit your requirements.
  2. System Design & Permit Acquisition:
    Our engineers design a customized solar solution using advanced modeling software. We then help secure necessary permits from your state DISCOM and coordinate required inspections.
  3. Subsidy Application Submission:
    Based on your project scope, we prepare and submit the relevant subsidy forms—whether for rooftop installations (e.g., through the National Portal for Rooftop Solar), or specialized agricultural programs (e.g., PM-KUSUM).
  4. Installation & Quality Checks:
    Once approvals are in place, our certified installers carry out the panel mounting, inverter setup, and grid connectivity steps. We conduct thorough quality checks to ensure the system meets MNRE guidelines.
  5. Inspection & Subsidy Disbursal:
    Post-installation, we liaise with inspectors to confirm compliance and finalize the subsidy or incentive disbursal. The respective government authority then credits the subsidy directly to your bank account, lowering the overall cost of your new solar power system.
  6. Post-Installation Support:
    We offer maintenance, troubleshooting, and performance monitoring to ensure your solar setup delivers maximum value throughout its lifespan. Our support extends to any future expansions or upgrades as well.

In essence, our comprehensive approach allows you to focus on enjoying the economic and environmental advantages of solar power, while we handle the intricate paperwork and compliance requirements.

Why Seize This Opportunity?

Adopting solar under these government subsidies offers a confluence of advantages:

  • Reduced Upfront Costs: Financial incentives can significantly bring down the initial capital outlay, making solar power more feasible for households and businesses alike.
  • Quick Payback Periods: Lower installation costs combined with savings on electricity bills result in faster ROI for new projects.
  • Energy Independence: Generating your own electricity fosters freedom from grid price volatility, ensuring predictable energy costs in the long term.
  • Environmental Stewardship: Transitioning to clean energy helps India meet its carbon reduction targets while ensuring a healthier planet for future generations.
  • Enhanced Property Value: Properties with existing solar installations often command higher resale values, given their long-term energy cost savings potential.

By acting now, you take an active role in India’s historic push toward becoming a global renewable energy powerhouse. Availing these government subsidies is not just a fiscally prudent decision, it is also a major step toward environmental conservation and sustainable development.

The Future of Solar Subsidies in India

India’s solar journey has reached a pivotal juncture. As the country races toward its target of 500 GW of non-fossil fuel-based energy by 2030, the renewable energy landscape is set to evolve further. We can anticipate:

  • Expanded Funding: Ongoing government allocations, like the budget outlay for the PM Surya Ghar Muft Bijli Yojana, signal long-term support.
  • Technology Upgrades: With the PLI Scheme incentivizing advanced manufacturing, solar panels are likely to become more efficient and cost-competitive, boosting overall system performance.
  • Wider Stakeholder Inclusion: From community solar projects to industrial-scale farms, policy expansions may extend incentives to other sectors, enabling green energy adoption for a broader user base.
  • Stricter Quality Controls: Given India’s ambitions, regulating bodies may impose higher standards on equipment certification and installation practices to maintain consistent quality across diverse regions.
  • Innovative Financial Models: We can expect to see more pay-as-you-go, lease, and power purchase agreement (PPA) options, allowing financially flexible pathways for households and businesses to go solar.

As these developments unfold, HKS Energy Solutions remains committed to guiding our clients with timely insights, technical expertise, and end-to-end project execution that aligns with the country’s evolving renewable energy policies.

Work with HKS Energy Solutions to Unlock Solar Subsidies

Making the shift to solar power has never been more appealing or more profitable. With generous subsidies from the Indian government and progressive policies aimed at creating a greener tomorrow, your investment in solar can yield substantial economic and environmental returns.

Our seasoned professionals at HKS Energy Solutions are well-versed in the intricacies of Indian renewable energy regulations, ensuring that you capitalize on every available tax break, incentive, or subsidy to minimize your costs. Whether you are a homeowner looking to install a 2 kW rooftop solar system or a farmer aiming to solarize your agricultural pumps through PM-KUSUM, we stand ready to guide you through each step of the process. From initial feasibility studies and design to obtaining approvals and overseeing post-installation maintenance, our holistic approach ensures a seamless transition to renewable energy.

Join us in shaping an eco-friendly future powered by sunlight, innovation, and collective responsibility. Embark on a journey that not only boosts your personal savings but also fortifies India’s pledge to reduce carbon emissions and secure a sustainable energy landscape for generations to come.

Ready to learn more about how these government subsidies can transform your energy usage? Contact us today and discover how HKS Energy Solutions can help you navigate the rewarding path of solar energy, from concept to completion.