Are you exhausted of expensive electricity expenses each month? Do you need financial assistance for solar energy but have been thinking about switching to solar energy? The good news is that the Government of India offers solar subsidies to make solar energy more accessible and affordable for residential consumers.
This complete guide covers everything you need to know about solar subsidies in India, especially the PM Surya Ghar: Muft Bijli Yojana. You’ll learn how to apply and how APN Solar supports you at every step of the process.
What is Solar Subsidy in India?
Solar subsidy in India are government initiative programs — enabling households to save money on the upfront cost with installing solar energy. The government subsidizes the switch to make it cheaper on solar power. The aim is to lessen the country’s reliance on fossil gas, support sustainable energy alternatives, and help residents protect their energy bills.
If you are a residential consumer in India, you can apply for a solar subsidy under the PM Surya Ghar Muft Bijli Yojana, which covers the installation of roof solar systems.
What is PM Surya Ghar Muft Bijli Yojana?
On January 22, 2024, during the auspicious consecration ceremony of Lord Rama at the Ayodhya temple, Prime Minister Shri Narendra Modi announced the launch of the PM Suryodaya Yojana 2024. Later renamed the PM Surya Ghar: Muft Bijli Yojana, it was officially launched on February 13, 2024, with a substantial total allocation of Rs 75,021 crore (~US$9 billion). This initiative forms part of the Government of India’s broader strategy to promote clean and renewable energy sources across the country.
The PM Surya Ghar Yojana aims to provide free electricity to 1 crore households through the installation of rooftop solar panels, offering up to 300 units of free electricity every month. This initiative is designed to make solar energy more affordable and accessible, thereby reducing the financial burden of electricity bills for residential consumers.
Eligibility Criteria for Solar Subsidy in India
Before applying for a solar subsidy, you must ensure that you meet the specified eligibility criteria.
Who Can Apply?
- Homeowners with valid electricity connections.
- Group Housing Societies (GHS) and Resident Welfare Associations (RWAs): Eligibility extends to solar installations for streetlights, EV charging stations, and other common-area facilities.
- Residents of Special States: Additional benefits are provided to states like Jammu & Kashmir, the Northeast, and other hilly/tribal regions.
Required Documentation
To apply, you’ll need proper documentation, such as:
- Recent electricity bill to validate your power usage.
- Proof of ownership (land deed or property papers).
- Bank account information for subsidy disbursement.
Technical Conditions
- You must use MNRE-approved solar panels and inverters.
- System size should align with your household’s electricity needs.
Understanding Solar Subsidy Offers
| System Size | Subsidy Per kW |
| 1 – 2 kW | Rs 30,000 to Rs 60,000/- |
| 2 – 3 kW | Rs 60,000 to Rs 78,000/- |
| Above 3 kW | Rs 78,000/- |
Additional Benefits for Group Housing Societies (GHS) and RWAs
If you live in a Group Housing Society (GHS) or Resident Welfare Association (RWA), you may be eligible for additional subsidies for common area facilities, such as EV charging stations and shared solar panels.
- ₹18,000 per kW for capacities up to 500 kW (includes individual rooftop plants installed by residents).
Important Tip:
Some states offer additional solar subsidies alongside the central government’s PM Surya Ghar Yojana subsidy. Check with your local authorities to find out about state-specific subsidies. This way, you can maximize your benefits by availing both state and central subsidies!
Cost Breakdown of Solar Installations
Understanding the financial aspect of solar panel installation is crucial. Here’s a detailed breakdown of the cost of installing solar systems, factoring in the solar subsidy.
| System Size | Cost Without Subsidy | Subsidy | Final Price After Subsidy |
| 1kW | ₹40,000 – ₹50,000 | ₹30,000 | ₹10,000 – ₹20,000 |
| 2kW | ₹80,000 – ₹1,00,000 | ₹60,000 | ₹20,000 – ₹40,000 |
| 3kW | ₹1,20,000 – ₹1,50,000 | ₹78,000 | ₹42,000 – ₹72,000 |
| 4kW | ₹1,60,000 – ₹2,00,000 | ₹78,000 | ₹82,000 – ₹1,22,000 |
| 5kW | ₹2,00,000 – ₹2,50,000 | ₹78,000 | ₹1,22,000 – ₹1,72,000 |
Note: The prices of the panels mentioned in the table are provided as example costs and are intended for illustrative purposes only. The actual price of each panel may vary based on various factors such as brand, quality, installation requirements, location, and market conditions. Please consider this as a reference point.
Potential Savings on Electricity Bills
Switching to solar energy can lead to significant savings on your electricity bills. Here’s a rough estimate of how much you can save:
After installing solar, you’ll be able to cover most or all of your electricity needs, which leads to substantial savings every month.
How to Apply for Solar Subsidy in India
The application process for the solar subsidy under PM Surya Ghar Yojana is simple, and you can complete it in a few easy steps:
- Visit the National Portal: Go to the PM Surya Ghar Yojana Portal (https://pmsuryaghar.gov.in/).
- Create an Account: Register with your mobile number and enter the required details such as your name, email, and address.
- Select a Solar Vendor: Choose a registered vendor like APN Solar for installing your solar system. You will need to select your state, district, and electricity distribution company.
- Submit Application: Fill out the required forms and upload necessary documents such as your electricity bill, ID proof, and address proof.
- Approval and Installation: Once your application is processed and approved, your solar panels will be installed by the vendor.
Challenges and Limitations of Solar Subsidy in India
While the solar subsidy is a great initiative, there are some common challenges that homeowners might face:
- Documentation: Incomplete or incorrect documents can delay the process. It’s crucial to provide the correct details to avoid rejections.
- Long Approval Time: The approval process can take time, depending on your state’s power distribution company.
- Upfront Cost: You’ll need to pay the full amount upfront, but the subsidy significantly lowers your overall cost once it’s credited to your account.
Why Choose APN Solar and how APN Solar Helps with the Subsidy Process.
At APN Solar, we are committed to making the solar subsidy process as smooth as possible for you. Here’s how we help:
- Expert Guidance on Eligibility and Application – Our team will guide you through the entire application process, ensuring all your documents are in place, and you meet all the eligibility requirements.
- Quick Subsidy Approval Process – We work closely with the authorities to ensure that your subsidy application is processed without delays. We will track the application status and handle any follow-ups for you.
- Professional Solar Installation – Once your subsidy is approved, we handle everything from installation to system testing. We ensure a hassle-free installation of your solar panels.
- Post-Installation Support – Even after your solar system is up and running, we provide ongoing support to address any concerns or questions.
- Franchise Opportunity – If you’re interested in starting your own solar business, we offer a low-investment, high-support franchise model. Click here to learn more about becoming an APN Solar franchise partner.
Frequently Asked Questions (FAQs)
- Does the Indian government provide subsidies for solar panels?
Yes, the Indian government offers various subsidies and incentives to promote solar energy. APN Solar makes the process easier by helping you navigate through the available subsidy programs and ensuring that you maximize the benefits of these schemes.
- Who is eligible for solar panel subsidies in India?
Eligibility typically includes homeowners, farmers, and certain businesses, with variations based on the specific subsidy scheme. APN Solar will assess your eligibility and ensure you’re enrolled in the right program, so you don’t miss out on any potential savings.
- Can I avail of state-level solar subsidies in addition to national subsidies?
Yes, several states offer additional incentives or rebates on top of the central government subsidies. Moreover, APN Solar is well-versed with both national and state-level policies, ensuring that you benefit from every available subsidy to reduce your solar installation costs.
- Are there subsidies available for commercial and industrial solar systems?
Yes, the government provides subsidies and incentives for commercial and industrial solar installations. APN Solar specializes in both residential and commercial projects, guiding you through the subsidy application process and ensuring a seamless installation experience.
Solar Installation Process & Documentation FAQs
- How can I apply for a solar panel subsidy?
The application process involves registering online, selecting an authorized vendor, and submitting required documentation. APN Solar takes care of the entire process—from registration to subsidy application—so you don’t have to deal with the paperwork and complexities.
- What documentation is required for solar subsidy applications?
You will need to provide documents such as identity proof, address proof, and an income certificate. APN Solar takes care of collecting and submitting all required documentation, ensuring your application is processed smoothly.
- What is the procedure for installing rooftop solar panels in India?
The procedure typically involves registering on government portals, choosing an approved vendor, and getting the system installed. APN Solar manages everything from initial consultation to installation, ensuring that you receive the proper subsidy and that all required documentation is handled efficiently.
- How long does it take to get the subsidy after installation?
After installation, the subsidy amount is typically credited within a few weeks to a few months, depending on the scheme and verification process. APN Solar ensures that the installation process is expedited and takes care of the verification for timely subsidy disbursal.
- What is net metering, and how does it benefit solar panel owners?
Net metering allows solar users to feed excess electricity back into the grid, earning credits that offset their electricity bills.
Join APN Solar as a Franchise Partner
If you’re looking to take your involvement with solar energy to the next level, consider joining APN Solar as a franchise partner. With an affordable investment and comprehensive support, it’s an ideal way to enter the growing solar industry. Learn more about how to start your solar franchise with APN Solar today!
Conclusion
The solar subsidy is an excellent opportunity for homeowners in India to reduce their energy bills and contribute to a cleaner, greener future. By choosing APN Solar, you can enjoy a hassle-free solar installation process, from subsidy application to post-installation support.
Ready to make the switch to solar? Contact APN Solar today for expert assistance with your solar subsidy application or to explore solar business opportunities.
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