Solar energy has been emerging as one of the best alternative electricity and power supply sources in India. With a greater demand for solar systems came the necessity to have sustainable solar energy solutions. Urban solarise is a dynamic energy development company that has always dedicated itself to developing innovative photovoltaic solutions in the country. They are one of the best residential and commercial solar installers currently functioning in India. Working with urban solarise – the best Residential Solar Installers, you are guaranteed to get the best possible quality of solar energy solutions.
What Is Solar Subsidy?
Subsidy refers to the sum of money granted by a state body to a business or industry to encourage low costs. Solar energy is an excellent alternative in the power generation field, but solar energy plants’ expensive installation costs make it unaffordable for most of the Indian population. The Indian government has come forward with various subsidy plans for solar system installations to tackle this problem. With a deduction of over 30% in the total installation cost, homeowners and businesses can save a lot while using this renewable and efficient energy option. In some exceptional cases, the subsidy deductions in the installation cost can go up to 70%—the rates of the subsidy change as per the latest plan brought forward by the ministry.
Why Does the Government Give Solar Subsidy?
As mentioned above, the Indian government is increasing solar energy usage with the help of solar subsidies. The solar subsidies make solar energy affordable for a larger population and make it available to remote areas. The critical point that we should remember here is that state-run electricity grids cannot reach every village and place in the country. If the electricity grids are set up all across the nation, the cost of running them over the years would be too costly for the state or union budget. This scenario is mutually beneficial for the government and the business, and homeowners to choose solar energy.
Subsidy Benefits And Demerits
With a clear goal to promote solar energy in India, the solar power subsidy offered by the government has its merits and demerits. Let us have a look at both briefly.
Lowers installation and operational costs
By offering solar panel installation and operational subsidies, the government lowers the total cost of using solar energy. This promotes more people to invest in solar systems and shift away from conventional state-run electricity grids.
Promotes solar energy industry
The market for solar systems is rapidly developing in all global countries. To keep up with the pace, India must establish its foothold in the industry. Offering subsidies to promote the industry is a good step forward.
A vague measure of success
When the government supports the industries to establish their solar panels, it isn’t easy to estimate this alternative energy’s accurate rate of success. Different rates of subsidies make it difficult to provide clear statistics.
Heavy subsidies in one field directly relate to increased taxes and lack of concessions in other areas. The government can only raise funds through limited sources, and raising taxes is one of their primary ways.
Cost Estimation Table And Desc
To avail of the subsidies and various benefits offered by the government for using commercial and residential solar installers, you would need to follow strict protocols. Proper documentation and clear guidelines need to follow at the time of installation. As mentioned earlier, the central government offers a 30% subsidy for rooftop solar systems. On the other hand, particular states like Sikkim, Himachal Pradesh, Uttrakhand, Jammu and Kashmir, and Lakshadweep enjoy a hiked subsidy of 70 % from the central government.
For availing of the subsidy, the average installation cost of the rooftop photovoltaic system should be approximately ₹ 70000. On an early basis, the customer should be able to generate 1100kWh-1500kWh to get a generation-based incentive. There are various other types of subsidies and offers that customers can enjoy given their specific conditions.
If you are interested in availing of the subsidies, you need to get in touch with your electricity provider and formally apply with the necessary documentation. At the time of your installation, an appropriate authority would visit the site to review and approve the application. Post-inspection, you would be able to avail of the subsidy amount.
If you are interested in solar energy utilization for your power consumption needs, Urban Solarise would be the right company to avail best solar panel cost in India. With years of experience and reliable technology, you can entrust your purchase and installation with Urban Solarise, the best Commercial Solar Installers. Use the best solar panels and systems to experience premium quality with Urban Solarise.