India’s commitment to renewable energy, particularly solar power, has reached new heights in 2025. The government has introduced and expanded several policies and financial incentives to boost solar adoption across households, industries, and agriculture. Let’s explore the latest solar energy initiatives in India.
Key Government Policies
PM Surya Ghar Muft Bijli Yojana (2025 Expansion)
This ambitious program aims to provide free solar electricity to 10 million households by 2026. Homeowners can benefit from substantial subsidies from solar company in pune:
- ₹30,000 per kW (up to 2 kW)
- ₹78,000 for 3 kW systems
- Additional ₹18,000 per kW for 3-10 kW systems
Rooftop Solar Scheme
With a target of 40 GW rooftop solar capacity by 2026, this scheme offers:
- 40% subsidy for systems up to 3 kW
- 20% subsidy for 3-10 kW systems
- Net metering to sell excess power to the grid
KUSUM Scheme
Designed to support farmers, this initiative provides:
- 30% subsidy for standalone solar pumps
- 60% subsidy for community solar plants
- Opportunity for farmers to earn by selling surplus power
Solar Park Scheme
The government plans to develop over 50 solar parks (500 MW+ each) by 2030, simplifying land acquisition and grid connectivity for developers.
Financial Incentives and Subsidies
Central and State Subsidies
- Central Financial Assistance (CFA) up to ₹78,000 for residential solar
- State-specific incentives like Gujarat’s additional ₹10,000 per kW for rooftop solar
Tax Benefits and Duty Exemptions
- 80% accelerated depreciation in the first year for businesses
- Reduced GST of 5% on solar systems
- Customs duty exemption on solar equipment manufacturing machinery
Low-Interest Solar Loans
Banks like SBI, PNB, and IREDA offer loans at 7-9% interest, while SECI funds large-scale projects.
Net Metering and Grid Connectivity
The net metering policy allows consumers to offset electricity bills by feeding surplus power into the grid. Gross metering is available for large projects. Gujarat, Karnataka, Tamil Nadu, and Rajasthan lead in net metering implementation.
Challenges and Future Outlook
Despite the progress, the solar sector faces challenges:
- High dependence on Chinese imports (70% of solar panels)
- Land acquisition delays for utility-scale projects
- Grid integration issues in rural areas
Looking ahead, India is focusing on:
- Boosting local manufacturing through the Atmanirbhar Bharat initiative and PLI scheme
- Increasing adoption of solar + storage solutions
- Exploring innovative projects like floating solar plants (e.g., NTPC’s 100 MW Ramagundam project)
These initiatives demonstrate India’s commitment to a sustainable energy future. As the country strives to achieve its renewable energy goals, the solar sector is poised for unprecedented growth. With continued government support and technological advancements, India is well on its way to becoming a global leader in solar energy adoption.