Subsidy is provided to customers via MNRE and state renewable departments.
As per the current guidelines set by MNRE , CFA (Central Finance Assistance) subsidy for Grid-Tie Solar system is as following :
| MNRE Subsidy | Applicable for |
|---|---|
| 30% max of benchmark cost | General Category States:All other States/UTs not covered under special states |
| 70% max of benchmark cost | Special Category States/Islands:North Eastern States including Sikkim, Uttarakhand,Himachal Pradesh, Jammu & Kashmir and Lakshadweep, Andaman & Nicobar Islands |
Present benchmarking cost by MNRE is as follows :
| Rooftop capacity | Benchmark cost (INR/W) |
|---|---|
| up to 10kW | 70 |
| >10-100kWp | 65 |
| >100-500kWp | 60 |
The subsidy is available only to these categories:
| Type | Details |
|---|---|
| Residential | All types of residential buildings, including group housing. |
| Institutional | Schools, health institutes including medical colleges & hospitals, universities, educational institutes, etc |
| Social Sector |
Community centers, welfare homes, old age homes,orphanages, common service centers, common workshop for artisans or craftsman,facilities used for the community. Trusts/NGO/Voluntary organizations/ training institutes,any other establishments for common public use, etc. |
Procedure to get MNRE Subsidy:
- Step-1 Submit a project report with technical and financial details, operations and maintenance plan along with system monitoring and reporting details to MNRE via district head of your state nodal agency
- Step-2 MNRE evaluates your project on technical and financial points
- Step- 3 After your project is approved by MNRE, Open tenders are invited by your state nodal agency and a channel partner will be selected from open bidding process
- Step-4 Channel Partner completes the installation process
- Step-5 SNA inspects your installation to ensure that only MNRE approved components are installed
- Step-6 Subsidy amount is released to channel partner directly from MNRE
- Step-7 You will be responsible for payment of 70% of the system cost, if you chose to finance your solar plant, you may work with you bank to procure financing 70% of the system cost.
FAQ’s
Can I get subsidy for solar rooftop installation without MNRE channel partner?
No one can avail subsidy for a Solar PV power plant without involving authorized Channel partner
What are other fiscal incentives available for Rooftop Solar Systems?
There are provisions of concessional import duty/excise duty exemption, accelerated depreciation and tax holiday for setting up of grid connected rooftop power plants.
Which all States/UTs have issued regulations for netmetering/gross metering ?
20 State/UT Regulators from Andhra Pradesh, Chhattisgarh, Delhi, Gujarat, Haryana,Karnataka, Kerala, Odisha, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh, Uttarakhand and West Bengal, Andaman & Nicobar, Chandigarh, Dadra & Nagar Haveli, Daman & Diu, Lakshadweep, Pondicherry and Goa