We daily have to go through the hustle and bustle of daily life. However, electricity bills are one of the significant burdens for household and business alike. Can you imagine a scenario where your electricity bill is drastically reduced even good, you are contributing to a cleaner and greener planet. However, there are Government incentives solar energy which are converting this dream into reality these days. Solar panels are usually used to convert sunlight into electricity. We have come up with a list of support offered by government dedicated for solar energy. Government aims to make it an attractive and feasible option for everyone. Are you ready to know about these subsidies and government incentives? Then let’s get started.
What Are Solar Panels?
Solar panels are also called with an alternative name such as photovoltaic (PV) panels. These are devices are dedicated to convert sunlight into electricity. These devices are made of solar cells and they are composed of semi-conductor materials like silicon. However, as the sunlight hits these cells, it excites the electrons which then creates electric current. This current is useful to power homes, businesses or even entire communities. Solar panels are clean and renewable energy.
List of Government incentives solar energy in India
- Jawaharlal Nehru National Solar Mission (JNNSM): this mission was launched in 2010. This mission aims to establish India as a global leader in solar energy by promoting large-scale deployment of solar power systems. However, this mission offers financial support and incentives for both grid connected or off-gride solar projects. This makes it easy for individuals and businesses to invest in solar energy.
- Central Financial Assistance (CFA) for Rooftop Solar Power Plants: Indian government offers substantial financial assistance through which they encourage the installation of rooftop solar power plants. Under this scheme, there are different bodies that receives financial assistance such as residential, institutional and social sector buildings. They receive 20% to 40% of subsidies of the total project cost. This also depends on points such as location, type of installation etc. This reduces the upfront cost and makes solar panels available to wider audience.
- Development of Solar Parks Scheme: government has launched solar parks scheme where they want to facilitate the creation of large-scale solar power projects. This is an initiative which offers financial support to solar park development. However, these parks attracts private investment and contribute significantly to India’s renewable energy capacity.
- Pradhan Mantri Suryodaya Yojana (Prime Minister’s Sunrise Scheme): this scheme is designed to favour rural and remote areas. PMSY is there to offer solar energy solution to these areas by offering subsidies and financial incentives for the installation of solar power. This scheme aims to ensure that underserved communities can get benefit from clean and affordable energy.
- Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM-KUSUM): the next scheme is PM-KUSUM that aims to empower farmers. Under this scheme, farmers get help to install solar power irrigation system and solar pumps. However, this is an initiative from government side to reduce the dependence on grid electricity and diesel. This helps to save a significant amount for farmers. Not only this, but PM-KUSUM also includes financial assistance for setting up grid-connected solar power plants on barren or fallow land. This generates some significant amount of additional income for farmers.
- Production Linked Incentive (PLI) Scheme for High-Efficiency Solar PV Modules: PLI scheme is different from other schemes as it is designed to boost the domestic manufacture of solar PV modules. Under this scheme, the manufacturers are provided with financial support as per their production output and efficiency levels. This helps to reduce the reliance on imported solar panels and create a robust domestic supply chain.
- Grid-Connected Rooftop Solar Programme: with this program, government encourages the installation of grid-connected rooftop solar systems. However, this includes subsidies for residential and commercial buildings as well. This also allows solar power system owners to sell excess electricity back to the grid. This is an additional source of income for the owner.
- Solar Energy Corporation of India (SECI) Schemes: this is a government owned company. This company is responsible to implement different solar energy projects across the country. However, it offers several schemes and tenders that promotes solar power generation. This scheme also includes Viability Gap Funding (VGF) scheme which is responsible to bridge the gap between the cost of solar power projects and tariff realized through the power purchase agreements.
Indian government is taking steps to promote solar energy through different incentives and subsidies. These steps of government are aimed to make solar power more affordable and accessible to but also contribute to a cleaner and more sustainable future. These are some of the Government incentives solar energy to make India a global leader in renewable energy.