State Government Solar Subsidy Structure in India

India is making significant strides in its renewable energy journey, with rooftop solar (RTS) playing a pivotal role. The Central Financial Assistance (CFA) from the Ministry of New and Renewable Energy (MNRE) offers a national incentive. However, state government subsidies are equally important for speeding up solar adoption at the local level. This guide explores state-level solar subsidies and provides a helpful roadmap to navigate available incentives.

1. The Synergy of CFA and State Subsidies

1.1 Central Financial Assistance (CFA)

The MNRE’s CFA acts as a foundational incentive, reducing the upfront cost of RTS installations across India. The CFA amount is linked to the system’s kilowatt (kW) or kilowatt-peak (kWp) capacity.

1.2 State Government Subsidies

Individual states offer additional financial support to boost solar adoption within their regions. These vary in:

• Subsidy Amount: Fixed per kW or capped subsidy based on system size.
• Capacity Limits: Maximum eligible system size.
• Eligibility: Residential criteria, income limits, etc.
• Disbursement Method: Upfront subsidy or generation-based incentives.

2. Decoding State-Specific Subsidy Structures

Below are sample state subsidy amounts as shown in the article:

• Uttar Pradesh: ₹15,000/kW up to 2 kW
• Haryana: Up to ₹25,000/kW up to 2 kW (only for poor families)
• Uttarakhand: Up to ₹23,000/kW for 1 kW; capped at ₹57,000
• Goa: 10% of benchmark cost till 10 kW
• Daman & Diu: ₹10,000/kW up to 5 kW
• Ladakh: ₹20,000/kWp up to 2 kWp; ₹10,000/kWp extra up to ₹30,000
• Delhi: ₹2,000/kW up to 5 kW (generation-based incentive)
• Assam: ₹15,000/kW up to 3 kW; capped at ₹45,000
• Lakshadweep: ₹45,000/kW up to 2 kW; ₹27,000/kW for extra 1 kW
• Odisha: ₹20,000/kW for Bhubaneswar city

3. Navigating the Subsidy Landscape: Key Considerations

3.1 Eligibility Criteria

Eligibility may depend on factors such as:

• Residential/commercial status
• Property ownership
• Income level
• Type of solar system (grid-connected, off-grid)

3.2 Application Process

Applications are processed through the State Nodal Agency and DISCOMs, which handle grid connectivity and subsidy verification.

3.3 Documentation Requirements

• Proof of identity and address
• Property documents
• System design and specifications
• Invoice and payment receipts

3.4 Subsidy Disbursement

Depending on the state, subsidies may be credited upfront or after installation and inspection.

3.5 Policy Updates

Solar policies and subsidy structures may change, so referring to official government websites is essential.

4. Empowering Your Solar Journey

By understanding central and state subsidies, you can make informed decisions about solar investments. Always research through official sources, compare subsidy options, and select a system that maximizes your savings.