Subsidy on Solar
Subsidy on Solar Panel, Solar system, Water Pump & Solar Product.
Subsidy on solar system provide by Indian govt by Ministry of New and Renewable Energy (MNRE). For last couple of years the need of energy has been increased very rapidly .So The Central Government has set a marathon target to hit 227 gigawatt by end of 31 march 2022.And to achieve this huge target govt is promoting solar energy in many ways e.g. low GST rates ,Subsidy and Start up facility, Startup loans etc. Indian govt has sanctioned an amount of Rs 5000 crore for solar subsidies only.
Solar subsidy criteria
According to MNRE updation there is subsidy from 30% to 90% in different categories.
- 30% for all States and union Territories.
- 70% for 3 North States Himachal Pradesh, Uttarakhand, Jammu & Kashmir and Ladakh.
- Up to 90% Subsidy for solar water pumping System for Farmers only in special category.
Subsidy available for whom
- For Domestic purpose: – Any Individual for their home, shop and for other use of power generation.
- Social and Corporate sector: – All registered societies, Multi- story apartments, CGHS and other social building apartment.
- For Institutional purpose: – Institute like School, College, University campus, Old age homes, Orphanage, Hospitals, etc.
Important Note: – Subsidy is available only on Made in India Solar Panels on Grid, Hybrid Solar System and Solar water Pumps Connected Systems.
How to Get Subsidy.
- Submit your solar system projects with full details of financial, technical, maintenance and operation to MNRE via district Head of state nodal agency.
- Approval by MNRE.
- Open tender is invited, channel partner will be selected by bidding process.
- Channel partner completes the projects.
- An inspection by SNA to make sure only mnre approved components are installed.
- Subsidy amount is released to channel partner directly by MNRE.
- If there is bank involve in financing, Bank disperse only 70% amount to channel partner. Rest id subsidy.
Return on Investment on solar
Return on investment are based on unit produced by solar system every month and price of per unit taken by electricity board.
For Example: – If we have 5 kilowatts on grid solar system, So the Unit produced by solar system is up to 600 units, and the unit price of Per unit is Rs 8, Then we can say that we have saved Rs 4800 per month. And If we calculate total amount invested on 5 kilowatts on grid solar plant is approx. 250000 after Govt subsidy. After All calculation our return on investment will be within 5-6 years. And normally solar system has 25 years of warranty
5 kilowatt- 1P
10 kilowatt -3P
Extra Benefit by Net Metering.
Net metering is a system to net the energy between export of production energy and Import of grid energy for a billing month.
In an On Grid Solar PV system production of surplus energy may happen during less demand period. This surplus of energy export to the main grid, and during night this energy drawn from the grid, and all this export import calculation done by Net Metering
Under Section 32 of Income tax burden in the first few years of the project, Govt Of India provide Accelerated Depreciation benefit up to 100 % of the total project cost. (80% is Accelerated Depreciation Tax and 20% of additional Dep).