{"id":299,"date":"2019-02-25T14:03:14","date_gmt":"2019-02-25T14:03:14","guid":{"rendered":"http:\/\/minusco2.in\/solarinsider\/?p=299"},"modified":"2019-03-01T06:21:20","modified_gmt":"2019-03-01T06:21:20","slug":"solar-power-incentives","status":"publish","type":"post","link":"https:\/\/minusco2.in\/solarinsider\/solar-power-incentives\/","title":{"rendered":"Incentives to Transition to Solar Power"},"content":{"rendered":"

A 1 kW solar PV plant would cost you <\/span>\u20b9<\/span>75,000. And yes, a 10 KW PV plant costs over \u20b95,75,000. Ouch! Isn\u2019t that too big an investment to make? How on earth would you afford it? And why would you, even if you can, make this huge a dent in your savings? <\/span><\/p>\n

Well, well, well\u2026.we do understand. But before you cast away a solar future, you might want to look at the other side of the story. While solar PV plants as such are anything but affordable, the many existing government subsidies and incentives are what make them so. Don\u2019t believe us? Well, read on to see how Indian Government, in its resolve to produce 227 gigawatts of solar power by 2022, avail many a subsidy and incentive to help you, and thereby the whole nation, transition to a solar future.<\/span><\/p>\n

\"Solar<\/p>\n

Government incentives can broadly be classified into three categories \u2013for residential, institutional and NGO sector; for farmers; for the commercial sector.<\/span><\/p>\n

A. Incentives for residential, institutional and NGOs.<\/b><\/span><\/p>\n

If you plan to install a solar PV plant in a building belonging to any of the following categories, you are eligible for MNRE subsidy<\/em>. <\/span><\/p>\n

\u2022\u00a0 \u00a0 <\/span>Residential \u2013 Independent households <\/span><\/p>\n

\u2022\u00a0 \u00a0 <\/span>Social Sector \u2013 Registered societies, cooperative housing societies, and multi-storey apartments<\/span><\/p>\n

\u2022\u00a0 \u00a0 <\/span>Institutional \u2013 Schools, colleges, institutes<\/span><\/p>\n

\u2022\u00a0 \u00a0 <\/span>Non-profit organizations \u2013 All NGOs including, but not limited to, old-age homes, orphanages etc.<\/span><\/p>\n

Well, how much subsidy you can avail will depend on where you belong to. MNRE\u2019s latest notification states the following subsidies (in Percentage to the capital cost of the installation) \u2013<\/span><\/p>\n

\u2022\u00a0 \u00a0 <\/span>30% for residents of all states<\/span><\/p>\n

\u2022\u00a0 \u00a0 <\/span>70% for residents of hilly states \u2013 Jammu & Kashmir, Uttarakhand, and Himachal Pradesh<\/span><\/p>\n

What this means is that if you install a solar PV system in a household or an institution in any of the above-mentioned categories, the Government will provide 30% of its capital cost if you belong to a general category state and 70% of the capital cost if you are a resident of any of the hilly states listed above! <\/span><\/p>\n

Refer to the table below for a rough estimate of the actual cost, Govt Subsidy and cost after the subsidy. Note that this has been calculated assuming you are eligible for 30% subsidy (that is, you aren\u2019t residing in any of the hilly states that can avail a whopping 70% subsidy)<\/span><\/p>\n\n\n\n\n\n\n\n\n\n
\n

Solar\u00a0Plant<\/b><\/span><\/p>\n<\/td>\n

Solar Plant Cost<\/b><\/span><\/td>\nGovt. Subsidy<\/b><\/span><\/td>\nCost After\u00a0Subsidy<\/b><\/span><\/td>\nUnits\u00a0Monthly<\/b><\/span><\/td>\nSavings\u00a0Monthly<\/b><\/span><\/td>\nPayback Period<\/b><\/span><\/td>\n<\/tr>\n
1KW<\/span><\/td>\n\u20b9\u00a075,000<\/span><\/td>\n\u20b9\u00a022,500<\/span><\/td>\n\u20b9\u00a052,500<\/span><\/td>\n120<\/span><\/td>\n\u20b9\u00a0960<\/span><\/td>\n4.5 Years<\/span><\/td>\n<\/tr>\n
2KW<\/span><\/td>\n\u20b9\u00a01,40,000<\/span><\/td>\n\u20b9\u00a042,000<\/span><\/td>\n\u20b9\u00a098,000<\/span><\/td>\n240<\/span><\/td>\n\u20b9\u00a01,920<\/span><\/td>\n4.5 Years<\/span><\/td>\n<\/tr>\n
3KW<\/span><\/td>\n\u20b9\u00a02,10,000<\/span><\/td>\n\u20b9\u00a063,000<\/span><\/td>\n\u20b9\u00a01,47,000<\/span><\/td>\n360<\/span><\/td>\n\u20b9\u00a02,880<\/span><\/td>\n4.5 Years<\/span><\/td>\n<\/tr>\n
4KW-1P<\/span><\/td>\n\u20b9\u00a02,50,000<\/span><\/td>\n\u20b9\u00a075,000<\/span><\/td>\n\u20b9\u00a01,75,000<\/span><\/td>\n480<\/span><\/td>\n\u20b9\u00a03,840<\/span><\/td>\n4 Years<\/span><\/td>\n<\/tr>\n
5KW-1P<\/span><\/td>\n\u20b9\u00a03,20,000<\/span><\/td>\n\u20b9\u00a096,000<\/span><\/td>\n\u20b9\u00a02,24,000<\/span><\/td>\n600<\/span><\/td>\n\u20b9\u00a04,800<\/span><\/td>\n4 Years<\/span><\/td>\n<\/tr>\n
10KW-3P<\/span><\/td>\n\u20b9\u00a05,80,000<\/span><\/td>\n\u20b9\u00a01,74,000<\/span><\/td>\n\u20b9\u00a04,06,000<\/span><\/td>\n1440<\/span><\/td>\n\u20b9\u00a011,520<\/span><\/td>\n\n

3 Years<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n


\nB. Incentives for farmers<\/b><\/span><\/p>\n

Farmers are eligible for an MNRE subsidy up to 90% on solar water pumps. Well, haven\u2019t you heard the glittering tales of solar irrigation in villages like Dhundi, Gujarat, whose farmers have found their ways to better lives via solar pumps that gift them abundant water supply for their fields and produce excess electricity which they can sell to the grid \u2013 which brings us to our favourite incentive of all, net metering. <\/span><\/p>\n

A Quick Snapshot of Net-metering and Its Benefits<\/h2>
<\/div>Under net metering, the excess energy that gets produced by the Solar PV system (and let us tell you, there\u2019s got to be much!) is fed into the grid, which can then be utilised to supply electricity to other households of the grid. You will receive credits for the energy your system supplies to the grid, earning you a deduction in your next electricity bill! Isn\u2019t that such an ingenious way to let the world be more solar-energy dependent while saving you money? Know that whoever you are \u2013 a farmer with solar pumps, or a house owner who has installed rooftop PV plant, or a commercial unit sourcing its power needs from its own solar PV plants, the excess electricity your solar plant produces can play a pivotal role in your savings in future.<\/span><\/div><\/div>\n

C. Incentives for the commercial sector<\/b><\/span><\/p>\n

Well, there\u2019s also good news to those in the commercial and industrial sector. Sure, they can\u2019t avail the MNRE subsidy covering 30% of the capital cost, but a profit-making commercial entity can claim 40% of the project cost as depreciation in the very first year of installation under Section 32 of the Income Tax Act, 1961.\u00a0 <\/span>Accelerated depreciation has been one of the prime influential factors in making many of India\u2019s commercial and industrial units to go solar.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

A 1 kW solar PV plant would cost you \u20b975,000. And yes, a 10 KW PV plant costs over \u20b95,75,000. Ouch! Isn\u2019t that too big an investment to make? How on earth would you afford it? And why would you, even if you can, make this huge a dent in your savings? Well, well, well\u2026.we … Read more<\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-299","post","type-post","status-publish","format-standard","hentry","category-principles"],"yoast_head":"\nWhat are the Solar Power Incentives in India for the year 2019?<\/title>\n<meta name=\"description\" content=\"Read about the various subsidies through which Government is incentivizing solar power in India. 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