Solar panels are the relentless resource of electricity. The increasing demand for electricity, implementation of GST, and raising gross values are impacting utility bills. Therefore, homeowners started installing residential solar plants to save electricity and money as well. Even many countries have begun to spread awareness about the importance of solar plants and provide offerings to encourage people to install them, while also offering tax benefits.
In India, many homeowners are welcoming the solar plants not only to save on electricity bills but also to generate revenue from the government subsidies. Continue reading the blog to explore why many people are interested in installing solar plants and how it benefits individuals with government subsidies and tax incentives.
Why do Indians Choose Solar Plants?
India is a subtropical country that receives sunlight throughout the year. By choosing solar panels for their rooftops, homeowners can reduce their electricity bills. With the free resource, the cost of generating energy from it is minimal. Even the excess generated electricity can be pushed to net metering and create revenue.
Due to these reasons, many Indian homeowners opt for residential solar development in their areas to generate additional revenue for the long term. Although the initial installation costs seem higher, with government subsidies and tax reductions, the expense can be covered, providing you with free electricity for an extended period.
Solar Plants Scheme In India
Like other countries, India has taken a step to renew the green and eco-friendly environment by utilising sunlight to generate clean energy. The Indian government offers generous schemes for solar-powered homes, such as the PM Surya Ghar Bijli Yojana, which benefits people in both financial and economic growth.
PM Surya Ghar Bijli Yojana
- The PM Surya Ghar Bijli Yojana scheme was launched in 2024, with a strong focus on homes equipped with rooftop solar panel installations.
- By registering for the scheme, homeowners can receive a subsidy of approximately upto ₹70,000 per residential home installation.
- The subsidy amount can easily cover up to 50% of the installation costs, which are directly deposited into your bank account. It ensures minimal expenses on electricity and comes with a better ROI.
- When you register through the Online National Solar Portal, you can expect approval in approximately two weeks, which significantly reduces the waiting time.
- Along with the subsidy value, the home can receive a free 300 units of electricity per month and save on electricity expenses up to a thousand, depending on local DISCOM rates.
- The PM Surya Ghar Bijli Yojana scheme is only eligible for rooftop systems installed by MNRE-empanelled vendors and connected with net metering.
Eligibility to Apply in PM Surya Ghar Bijli Yojana Scheme
Like every government scheme and policy, the PM Surya Ghar Bijli Yojana also follows specific eligibility criteria. Here they are.
- This scheme is open only to residential building owners, including individual homes and apartments.
- Individual homes with a 10 kW capacity and apartment societies with complexes of up to 500 kW can be accepted. But all those spaces should have valid electricity connections.
- The house with solar panels must use MNRE-approved installers, batteries, and storage with a grid and net metering system.
- Non-residential buildings and commercial industries aren’t eligible for this scheme. They can seek other financial incentives according to their state policies.
Other Financial Benefits of Installing Solar Plants
Net Metering Policies
The Indian government has established standard net metering policies for all residential solar plants, enabling them to export excess energy generated back to the grid and generate a reliable revenue stream. With the storage battery, the resident can store the needed energy and transport the excess energy for an income. This net metering policy not only reduces the electricity bills but also provides a reliable income for the homeowners, depending on their electricity consumption and generation.
State Subsidies Program
In India, in addition to the national solar plants scheme, some states offer generous capital subsidies for residential solar development. According to their electricity expenses, local policies, and budgets, the capital subsidies vary from area to area. However, these schemes encourage homeowners to opt for solar plant rooftop systems, generating both electricity and revenue.
Tax Reduction
In India, every item is subject to GST (Goods and Services Tax). However, due to government subsidies, solar plants have a minimal GST value, which further reduces the installation costs for homeowners. All the subsidies and tax reductions can help cover the total solar installation cost within 5 to 7 years. After that, the house can get free electricity for a lifetime with a reliable income from the grid.
Loans And Finance
If you need money, obtaining a loan from a bank is a common practice. When you obtain a loan from a bank for solar installation, you can receive a loan with low interest and even offer a no-cost EMI option, making the residential cost more manageable for homeowners. Some state government banks offer subsidy loan rates for low- and middle-income families to adopt solar installations.
Income Tax Subsidies
Although the income tax is primarily focused on business and commercial industries, homeowners and residential building owners still need to pay property taxes. Some states have set up a limited standard tax subsidy for solar-adapted houses compared to other houses. If your residential building or complex uses electricity of less than 500 kW, you can access tax incentives according to the state’s schemes.
Final Takeaway
Solar plants have been a huge part of every Indian house. Installing solar plants in your residential area not only helps you save money but also provides an opportunity to generate revenue for years to come. With all the tax reductions and government subsidies, the installation costs of solar plants can be covered efficiently.
By reading the blog, you can now know the benefits of installing solar plants. Move from dilemma and contact NyalKaran Energy to install solar plants for your residential buildings. We offer solar panels that generate electricity for an extended period, helping to create a greener environment.