Why Government gives Solar Subsidy?
India had target to install 40GW solar panels at residentail home buildings, but India has achived only 5GW till 2021. Indian Goverment sets target 280GW solar panels by 2030 that means, every year should be install 10GW every year. Government has taken new intitives to install solar panels at homes, such as any customers can install solar panels by any solar dealer / distributors / company, installers and after installing they will send solar panel installation photo to the nearest electricity board.
There are three parties involved in the process: 1. Customers, 2. Channel Partners, and 3. DISCOMS.
#1. Customer Benefits
The subsidy is only available on Residential Homes (Individual Homes & Big Apartments), not commercial and industrial sectors. A solar subsidy is only available on Grid Connected Solar System (Without Battery System). As installing a solar system is a huge investment, the financial assistance motivates people to invest and takes some burden off their shoulders.
|System Capacity (kW)||Solar Subsidy (in %)|
|1kW to 3kW||40%|
|4kW to 10kW||20%|
|More than 10kW||No subsidy|
Homeowners can only install a solar system and claim subsidy through the state DISCOM. They will share customer details and register the nearest channel partner. You can find all states DISCOMS from here.
If you install solar system though subsidy scheme, the solar installation company will provide 5 years of performance warranty, then after you are self responsible for your solar system.