The Ministry of New and Renewable Energy (MNRE) in India offers a number of subsidies for solar power projects. The amount of subsidy available depends on the project size, location, and other factors.
For rooftop solar projects, the MNRE offers a central financial assistance (CFA) of 30% of the benchmark cost or the tender cost, whichever is lower. The state government may also offer an additional subsidy. For example, the state government of Maharashtra offers a subsidy of up to 30% for rooftop solar projects.
For solar projects in rural areas, the MNRE offers a CFA of 50% of the benchmark cost. The state government may also offer an additional subsidy. For example, the state government of Gujarat offers a subsidy of up to 30% for solar projects in rural areas.
For solar projects in off-grid areas, the MNRE offers a CFA of 70% of the benchmark cost. The state government may also offer an additional subsidy. For example, the state government of Uttar Pradesh offers a subsidy of up to 30% for solar projects in off-grid areas.
The MNRE also offers a number of other subsidies for solar power projects, such as subsidies for solar water pumps and solar street lights.
The latest solar subsidy in India is effective from April 1, 2023. The subsidy rates for rooftop solar projects are as follows:
For projects up to 3 kW, the CFA is Rs. 45,760 per kWp.
For projects between 3 kW and 10 kW, the CFA is Rs. 44,640 per kWp.
For projects between 10 kW and 100 kW, the CFA is Rs. 41,640 per kWp.
For projects above 100 kW, the CFA is Rs. 39,080 per kWp.
The subsidy rates for solar projects in rural areas are as follows:
For projects up to 3 kW, the CFA is Rs. 50,330 per kWp.
For projects between 3 kW and 10 kW, the CFA is Rs. 49,100 per kWp.
For projects between 10 kW and 100 kW, the CFA is Rs. 45,800 per kWp.
For projects above 100 kW, the CFA is Rs. 42,980 per kWp.
The subsidy rates for solar projects in off-grid areas are as follows:
For projects up to 3 kW, the CFA is Rs. 60,000 per kWp.
For projects between 3 kW and 10 kW, the CFA is Rs. 57,000 per kWp.
For projects between 10 kW and 100 kW, the CFA is Rs. 54,000 per kWp.
For projects above 100 kW, the CFA is Rs. 51,000 per kWp.
To avail of the MNRE solar subsidy, you must apply through the National Solar Rooftop Program (NSRP) portal. The NSRP portal can be found at https://solarrooftop.gov.in/.
Once you have applied for the subsidy, you will need to submit the following documents:
A copy of your electricity bill
A copy of your property documents
A copy of your PAN card
A copy of your Aadhaar card
The MNRE will review your application and approve it if you meet the eligibility criteria. Once your application is approved, you will be able to avail of the subsidy.
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