Rooftop Solar Projects, Policies & Incentives Arena in India !

Yes there is continuous ‘Boom-ma-Boom’ across the utility scale solar segment in India & another very interesting solar arena is not far behind in making news – the “Rooftop solar” power segments in India !

As the solar rooftop systems in India are getting increasingly popular due to day by day increase in the affordability of the solar system, so has the central financial assistance (CFA) / subsidy come under scrutiny which was much necessary.

Subsidy for rooftop solar power systems in India

Out of 100 GW of solar target of the Govt. of India, 40 GW has to come from grid connected solar power plants under the ‘Grid connected rooftop and small solar power plant” programme. The government is also providing central financial assistance (CFA) / subsidy for setting up of the same.

Very recently MNRE came up with an information notice that states that now the CFA / subsidy will be provided only to the Residential owners, Institutional, Govt. & social sector categories and will be up to 15%. That means Private, Commercial & Industrial building rooftops will not be covered under the subsidy unless the solar power system is owned by government organization.

Also the entities claiming subsidy will have to go with Domestic Content Requirement (DCR) clause i.e. the panels must be manufactured in India.

Also now the amount of subsidy that one can claim will be up to 15% of the benchmark costs. We personally feel that this is the very good move by the government as the commercial & industrial rooftop solar systems are already very much viable ensuring the payback of not more than 5 years for the users.

The official notice from MNRE regarding applicability of subsidy for rooftop solar power plants can be found HERE

Rooftop Solar makes Financial Sense !

Rooftop Solar makes Financial Sense !

Benefits & Incentives on solar rooftop systems in India

Below is the sum up of the benefits & incentives related rooftop solar plants :

  • 15% Government subsidy for non-commercial and non-industrial categories for using domestic solar panelse. subsidy applicable to Residential owners, Institutional, Govt. & social sector categories.
  • Loans available up to 15 Crore for renewable energy projects under Priority Sector Lending & up to Rs. 10 lakhs for individuals as per RBI directives.
  • Provision of bank loans as a part of home loan/ home improvement loan
  • Accelerated depreciation benefits for industrial and commercial buildings
  • 10 years tax holiday
  • Custom duty concessions and excise duty exemptions
  • Loans for system aggregators from Indian Renewable Energy Development Agency Limited (IREDA) at concessional interest rate (9.9% to 10.75% per annum)
  • Electricity Regulatory Commissions of 19 States/UTs have notified regulations for grid connectivity, net-metering/feed-in-tariff mechanism.
    • The states with net metering regulations are Andhra Pradesh, Chattisgarh, Delhi, Haryana, Karnataka, Kerala, Odisha, Rajasthan, Tamil Nadu, Uttar Pradesh, Uttarakhand, West Bengal, Andaman & Nicobar, Chandigarh, Dadra & Nagar Haveli, Daman & Diu, Lakshadweep, Pondicherry & Goa….Phewww —-Yes most of the states of India have it !

Below is the break up of the state wise and year wise targets proposed for the 40,000 MW grid connected solar roof top projects in India !

state wise and year wise target of rooftop solar projects in India

state wise and year wise target of rooftop solar projects in India

The Reserve Bank of India (RBI) also has now included renewable energy projects under priority sector lending. Government is also reaching out and advising public sector banks to provide loan for grid connected solar rooftop projects as home loan / home improvement loan to which so far about 9 PSBs – BoI, Syndicate Bank, SBI, Dena Bank, Central Bank of India, PNB, Allahabad bank , Indian bank & IOB have already taken some actions.

To sum it up :

  • On Viability :
    • If you are paying more than Rs. 7 per Unit on your utility bill currently then what are you waiting for – Just go for solar rooftop power plant for your roof ! It definitely makes sense.
  • On Subsidy :
    • Don’t depend on the subsidy to establish the viability of your solar system. Yes it helps a bit but your focus should be more on electricity savings, annual rise of your utility bills, regular power cuts & generating clean energy ! Very sooner the subsidies are going to stop as it happened in the solar water heaters arena.
  • For commercial & Industrial users : Already getting a solar system on your roof is very much viable even now and the benefits of accelerated depreciation and 10 year tax holiday adds much more viability to the same. All you smarties know what I mean 😉

Overall now is the right time to go solar & as Mahatma Gandhi once said …”all the means of production of the elementary necessaries of life remain in the control of the masses.”….& Electricity is one of them ! Think Logically !

And if you have plans to go solar for your rooftop then don’t forget, we can always help you with the same 🙂

Till we meet next time…Cheers !


Solar Project Consultant – India

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Twitter @ UrvishDave1 & Facebook page @ RenewableEnergySolutionsInIndia


About Urvish Dave

Urvish Dave is working as a Project Consultant in the Renewable Energy Arena with an expertise and keen focus on Solar Energy Sector viz. Rural Electrification, Off-Grid Solar Projects, Grid connected, Captive power plants, Renewable Energy Certificates (REC) Mechanism etc. for various Renewable Projects in India along with market intelligence pertaining to renewable energy sector. He holds the distinction of executing numerous Solar projects during the career path including EPC projects for Rural Electrification, Solar Grid Connected Projects, Off-Grid Projects etc. For Consultation and Turnkey Solutions in Renewable Energy Projects and energy efficient product's, visit or write him at
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2 Responses to Rooftop Solar Projects, Policies & Incentives Arena in India !

  1. Pingback: Overview of RfS for Upcoming 250 MW Solar Projects at Charanka – Gujarat Solar Park under JNNSM P-II B-III Tranche II | urvishdave

  2. Pingback: Gujarat announces Subsidy for Residential Grid Connected Rooftop Solar Systems ! | urvishdave

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