Solar Panel Subsidy in India 2022 - Everything you need to know

Solar energy is a lucrative alternative for businesses to become sustainable. Currently, the environment surrounding solar energy is conducive for investments. With governments across the globe paying attention to the growing problem of climate change, solar alternatives are in high demand. Subsidisation schemes are being introduced by governments to help businesses adopt this technology. At such a time, availing a solar panel subsidy is beneficial for your business. Let's glance at different solar panel systems and the solar panel subsidy available.

 

What’s a Solar Panel System and How Does It Work?

 

A solar panel is simple to use and contains three different parts. The photovoltaic cells are the first made of semiconductor material. They're responsible for converting sunlight into electricity. However, the energy captured is DC energy. Using an inverter that’s connected to the system, it is converted to AC energy. The utility metre in the system provides the reading for energy usage. And the main fuse box is connected to ensure the safety of the local circuitry. 

 

A Hybrid Solar System

 

A hybrid solar panel system connects to a utility grid. The inverter in this system converts the DC to AC. It is the most common solar panel system. Net metering helps carry this current to the utility grid. During daytime, direct energy can be harnessed and used. Contrarily, at night, there are two options for you. The first setting allows you to draw electricity during a power cut. Alternatively, the second option allows you to use any excess load beyond 50% of the battery capacity from the utility grid.

 

Solar Farms - What Are They?

 

A solar farm is a large-scale solar installation. It consists of multiple solar panels. This setup allows for harvesting an enormous amount of solar energy at a time! These farms operate as power plants. They have ground-mounted solar panels installed across a large area to provide power to local end-users. These can power large industries, data centres, etc. as well. Solar farms are beneficial for large scale power supply. For instance, a solar farm can support a nearby village or community.  

 

Solar Subsidies in India

 

Solar farms are the revolution of the future. Top companies across the globe have dedicated their resources to developing solar projects. Even though it has its drawbacks, its sustainability quotient exceeds gas and oil. Other forms of sustainable energy are also not as powerful as solar farms are. As a result, the government of India has solar panel subsidy in place. Businesses that opt for solar power can get stellar profits out of it! 

 

Let's look at the subsidies provided. Firstly, the residential sector has subsidies of 40% on the benchmark cost. The capacity one can avail is 3KW. Any grid consuming above 3 KW, has a subsidy of 40% up to 3KW and 20% for a range of 3KW to 10KW. For group housing societies consuming 500 KW compositely, the subsidy provided is 20% of the benchmark cost.

 

State Subsidies

 

Kerala is one of the forward-looking states offering up to 20% subsidy on a 500 KW capacity. However, if you seek to install an entire plant yourself, the subsidy percentage is 40 %. Maharashtra, Madhya Pradesh, Jharkhand, Bihar, and Rajasthan also offer up to 40% subsidy.  

 

The Cost Incurred

 

A simple cost calculation reveals the savings you can make in a year. If your electricity bill is Rs.2 lakhs, getting a solar power plant will cost you Rs.63,92,045. The tax benefit you get on this amount is Rs.10,86,648. Finally, the annual savings you make every year amounts to Rs.13,50,000. Your payback time is 4 years for this investment. After your initial payback period, all your savings are profits! 

 

Solar Panel Maintenance Cost

 

Solar panels have a marginal maintenance cost of installing solar panels. Small systems cost between 2,000 to 3,000 rupees, for every KW. Alternatively, if you have a solar system that exceeds 30KW to 50 KW, the cost is around Rs.1000 to Rs.1500 for every KW. The cost for solar panel subsidy and its system is low because it doesn't have any movable parts.

 

Thus, if you're looking to invest in solar panels, this is the right time. A solar panel has numerous benefits for your business. You can reduce business costs. The carbon footprint of your business is reduced as well. It opens you up to benefits on behalf of sustainable business initiatives. It also increases your goodwill in society! With governments providing solar panel subsidies, tax benefits are something you can utilize well. If you're looking to set up a solar panel system, we recommend contacting RaysExperts. The firm works with solar farms and has numerous farms across the country. These experts can help you with the installation, operation, and maintenance of your solar panels. It ensures that you can get a great boost for your business and join the green revolution! 

 

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