Government Subsidies and Tax Benefits for Solar Panels in India
The Indian government offers a range of subsidies and tax incentives to promote solar energy adoption, making it more affordable for households, farmers, and businesses. These initiatives reduce the initial investment cost and encourage the use of renewable energy, contributing to a sustainable future. Partner with NUera Solar to leverage these benefits and switch to solar today!
Residential Subsidies
Under the PM Surya Ghar Muft Bijli Yojana, households can receive one-time subsidies for installing rooftop solar systems. The subsidy amount varies based on system capacity:
- Up to 1 kW: ₹30,000
- 2 kW: ₹60,000
- 3 kW and above: ₹78,000
Subsidies are credited directly to the applicant's bank account upon installation and validation, making solar power accessible to more households.
Agricultural Subsidies
The PM KUSUM (Kisan Urja Suraksha evam Utthaan Mahabhiyan) scheme supports farmers by providing subsidies for solar pumps and grid-connected solar plants. Key benefits include:
- Up to 60% subsidy on solar pump installation
- 30% loan assistance
- Farmers contribute only 10% of the total cost
This initiative reduces reliance on diesel and promotes sustainable agricultural practices.
Why PM KUSUM?
Empowers farmers with affordable solar solutions, reducing energy costs and environmental impact.
Commercial and Institutional Incentives
The Ministry of New and Renewable Energy (MNRE) offers capital subsidies covering up to 30% of the installation cost for commercial rooftop solar systems. Businesses also benefit from accelerated depreciation and tax deductions on solar loan repayments, making solar a cost-effective energy solution.
"Solar incentives transform business economics by lowering energy costs and boosting sustainability."
Tax Benefits
Under Section 80-IA of the Income Tax Act, 1970, companies involved in solar power generation can claim a 100% tax waiver on profits for ten assessment years starting from the first year. This significant incentive encourages investment in solar projects and supports the growth of India's renewable energy sector.
100% tax waiver for 10 years
Accelerated depreciation benefits
Tax deductions on loan repayments
Conclusion
Government subsidies and tax incentives make switching to solar energy in India more affordable for residential, agricultural, and commercial users. By leveraging schemes like PM Surya Ghar and PM KUSUM, along with tax benefits under Section 80-IA, individuals and businesses can reduce energy costs and contribute to a sustainable future. Partner with NUera Solar to maximize these benefits and make the switch today!
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