Solar panel subsidies are financial incentives provided by the government and other organisations in the form of tax credits, rebates, or grants to reduce the upfront costs of solar panel installations., and to encourage the use of solar energy.
The primary goal of these subsidies is to promote the adoption of renewable energy sources, make solar energy more affordable and accessible to consumers, and ultimately reduce carbon emissions to combat climate change.
In Bihar, the availability and structure of solar panel subsidies may vary, depending on the local government’s policies and incentives. However, the Bihar state government has launched several initiatives to encourage the adoption of solar energy in the region.
The Bihar Renewable Energy Development Agency (BREDA) provides solar panel subsidy in Bihar for installing solar panels in households and commercial buildings. In addition, the government offers incentives and subsidies for industries and institutions that adopt solar energy.
Solar Panel Subsidy in Bihar: Benefits and Process
Overall, the solar panel subsidy in Bihar, India, aims to promote renewable energy sources and make solar energy more accessible and affordable to consumers. By adopting solar energy, individuals and organisations can reduce their carbon footprint and contribute to combating climate change.
Read this blog till the end to know all about Bihar solar subsidy.
What Is A Solar Subsidy?
A solar subsidy is a financial incentive offered by the Indian government to promote the adoption of solar energy. The primary goal of solar subsidies is to make solar energy more affordable and accessible to consumers while promoting the use of clean, renewable energy sources to reduce carbon emissions and combat climate change.
In India, solar subsidies are provided in various forms, such as tax credits, rebates, or grants. The central government and some state governments offer financial incentives for installing solar panels in households, commercial buildings, and public institutions.
Solar subsidies have made solar energy a more practical and cost-effective option for individuals and organisations, increasing the adoption of renewable energy sources. This, in turn, has helped to reduce carbon emissions, combat climate change, and create a more sustainable future for all.
Overall, solar subsidies in India are an essential tool in the country’s push towards renewable energy, and their continued availability and structure will be crucial in promoting the adoption of solar energy and achieving India’s renewable energy goals.
Solar Subsidy Provided by MNRE
“The Ministry of New and Renewable Energy (MNRE) provides up to 40% subsidy for solar installations in remote and hilly areas and up to 30% for other regions”. The government also provides interest-free loans for installing solar systems to promote renewable energy usage in the country.
Apart from the central government, some state governments in India also offer solar subsidies. For instance, Tamil Nadu provides up to 40% of the total system cost for residential and institutional solar projects, while the state of Gujarat offers a subsidy of up to 40% for residential solar projects.
Solar subsidies in India have played a crucial role in promoting the adoption of solar energy in the country. According to the Ministry of New and Renewable Energy, India has installed over 40 GW of solar capacity as of November 2021, making it the third-largest solar market in the world.
Benefits Of Solar Subsidy
- Solar subsidies in India can reduce the upfront costs of installing solar panels, making it more affordable for individuals and organisations to adopt solar energy.
- By reducing the payback period, solar subsidies can improve the return on investment of solar panel installations, making solar energy a more attractive investment option for businesses and individuals.
- Increased adoption of solar energy, encouraged by solar subsidies, can help reduce India’s dependence on non-renewable energy sources like coal.
- Solar energy is a clean and renewable energy source which can help reduce carbon emissions and combat climate change. Solar subsidies can contribute to this reduction by increasing the adoption of solar energy.
- The solar energy sector has the potential to create significant job opportunities in India, with increased adoption of solar energy resulting in more jobs in solar panel manufacturing, installation, and maintenance.
Disadvantages Of Solar Subsidy
Although solar subsidies in India have benefits, some disadvantages should also be considered, such as:
- Limited Funding
- Administrative Issues
- Risk Of Reduced Subsidies
- Higher Taxes
- Dependency On Subsidies
1. Limited Funding:
Solar subsidies in India depend on government funding, which may be limited, leading to a competitive application process and some individuals or organisations missing out on subsidies.
2. Administrative Issues:
The application process for solar subsidies can be complex and time-consuming, which may discourage some individuals and organisations from applying. Additionally, subsidy administration can sometimes be inefficient or prone to corruption.
3. Risk Of Reduced Subsidies:
Solar subsidies in India may be reduced or phased out over time, making it more difficult for individuals and organisations to plan long-term investments in solar energy.
4. Higher Taxes:
Taxes fund subsidies and some individuals and organisations in India may experience higher taxes due to solar subsidies.
5. Dependency On Subsidies:
There is a risk that individuals and organisations in India may become overly dependent on solar subsidies, leading to a reduced drive to invest in solar energy without subsidies.
Overall, individuals and organisations should carefully consider the pros and cons of solar subsidies in India and make informed decisions about their investments in solar energy.
Subsidies Provided On Solar Energy By BREDA
According to BREADA (Bihar Renewable Energy Development Agency), here are the important details about solar subsidy in Bihar, including the figures related to rooftop solar subsidy in Bihar, Bihar government solar subsidy and others-
Type of Subsidy | Eligibility Criteria | Amount |
Capital Subsidy | Individuals, institutions, organisations, and industries. | Up to 30% of the project cost, or Rs. 90,000/kW, whichever is less. |
Interest Subsidy, | Individuals, institutions, organisations, and industries availing loans from Bihar State Financial Corporation or nationalised banks. | Up to 5% of the interest on the loan, subject to a maximum of Rs. 2 lakhs per annum. |
Generation-Based Incentive (GBI) | Developers and investors setting up grid-connected solar power plants in Bihar. | Rs. 1 per unit of solar power generated for 25 years. |
How To Claim Subsidies (Complete Process With Required Documents)
To claim solar subsidies in India, you can follow these general steps:
- Find The Right Subsidy Program
- Apply For The Subsidy
- Submit The Required Documents
- Get Approval And Receive The Disbursement
Step 1: Find The Right Subsidy Program
Research and identify the appropriate subsidy program for your solar project. This can be done by checking with the central or state government.
Step 2: Apply For The Subsidy
Submit your application to the relevant government agency or department. The application process may involve filling out an online form or submitting a physical application with the required documents.
Step 3: Submit The Required Documents
Provide supporting documentation for your solar energy project, such as proof of ownership of the property, proof of identity and address, building permit or approval, technical specifications of the solar panels, and installation and equipment expenses.
Step 4: Get Approval And Receive The Disbursement
After your application has been approved, the subsidy amount will be disbursed to you. The disbursal process may vary depending on the subsidy program and the government agency involved.
It is important to remember that claiming solar subsidies in India can be complicated and time-consuming. It is advisable to seek the help of a qualified solar energy provider or consultant who can guide you through the process and ensure that all necessary documentation is in order.
Buying Solar Panels With Subsidy Vs Without Subsidy
When buying solar panels in India, there are some key differences between purchasing them with or without subsidies. Here are some points to consider:
Buying With Subsidies:
Cost:
Subsidies can significantly reduce the upfront cost of purchasing and installing solar panels, making them more affordable.
ROI:
The return on investment is typically higher when purchased with subsidies, as the reduced upfront cost can result in a shorter payback period.
Adoption:
Subsidies can encourage more individuals and organisations to adopt solar energy, reducing India’s dependence on non-renewable energy sources and combatting climate change.
Complex Process:
The subsidy process can be complex and time-consuming, which may deter some individuals and organisations.
Risk:
There is a risk that subsidies may be reduced or phased out over time.
Buying Without Subsidies:
Cost:
The upfront cost of purchasing and installing solar panels can be higher without subsidies, which may deter some individuals and organisations from adopting solar energy.
Control:
Without subsidies, individuals and organisations have more control over the installation and can choose the equipment and installation company that best meets their needs.
No Dependency:
Without subsidies, there is no risk of reduced subsidies or dependency on government support.
Risk:
There may be a higher financial risk involved with no subsidies as there is no support for the initial investment.
Overall, the decision to purchase solar panels with or without subsidies will depend on individual circumstances, such as the available budget, the desired ROI, and government support for solar energy in the area.
Conclusion
Solar subsidies can benefit those who wish to adopt solar energy in India. They can reduce the upfront cost of installing solar panels, making it more economically feasible for individuals and organisations. Moreover, subsidies can encourage more people to switch to solar energy, which can help combat climate change by reducing India’s reliance on non-renewable energy sources.
However, it is essential to consider the possible drawbacks of solar subsidies, such as limited funding, administrative issues, and dependency on subsidies. Individuals and organisations must carefully assess the pros and cons of solar subsidies and make informed decisions based on their specific circumstances. Factors such as available budget, desired ROI, and government support for solar energy in the area should be considered.
In summary, with careful planning and the assistance of qualified solar energy providers or consultants, solar energy can be a sustainable and cost-effective solution for India’s energy needs. It is essential to weigh the benefits and drawbacks of subsidies before investing in solar energy.
