Blog Details

🌞 Introduction

Solar power is not just environmentally sound — it’s becoming one of the smartest financial decisions Indian homeowners can make. To accelerate this shift, the Indian government has introduced a range of subsidies, incentives, and tax benefits for individuals installing solar systems at home.

This blog will help you understand all the current incentives (2024–25) available under central and state schemes like the PM Surya Ghar Muft Bijli Yojana, and how you can benefit by going solar with Ghar Ghar Solar.

‍

1. Central Government Subsidy – PM Surya Ghar Muft Bijli Yojana

This is the primary incentive scheme for residential rooftop solar, launched by the central government in 2024. The aim is to help 1 crore households install solar systems with direct financial support.

Subsidy Details:

• For a 1 kW system: ₹30,000
• For a 2 kW system: ₹60,000
• For a 3 kW or more: ₹78,000 (maximum subsidy cap)

This subsidy is transferred directly into the beneficiary’s bank account after the installation is completed and verified. You must apply through the official government portal pmsuryaghar.gov.in, or you can have an approved vendor like Ghar Ghar Solar manage it for you.

2. State-Level Solar Subsidies

Some states offer additional benefits on top of the central scheme. For example, Gujarat and Delhi have introduced top-up subsidies or simplified policy frameworks.

In Bihar, while there is currently no extra state-level subsidy, the state government facilitates quick processing for installations under the central PM Surya Ghar Yojana via its DISCOMs like BSPHCL.

Always consult your installer for updates on the latest state-specific incentives.

3. Income Tax Benefits — Myths vs Reality

There is a common misconception that solar panel installation for homes qualifies for income tax deduction under Section 80C or 80EE. Currently, no tax rebate is available to individual homeowners for personal solar systems under these sections.

However, if you're a business or commercial entity, you can:

• Claim tax benefits under Section 80-IA for renewable energy projects
• Claim accelerated depreciation under Section 32 of the Income Tax Act

For residential users, the financial incentive comes in the form of direct subsidies, EMI flexibility, and long-term energy savings.

4. Net Metering – Power Credits that Save You More

Net metering allows you to:

• Send excess electricity back to the grid
• Offset it against your future usage
• Significantly reduce your electricity bill — sometimes down to zero

In Bihar, net metering is fully supported by the state DISCOM. Ghar Ghar Solar manages the entire application and installation process, including meter upgrades, so homeowners can enjoy the full benefit.

5. Easy Financing – Soft Loans & EMIs

The Ministry of New and Renewable Energy (MNRE) encourages banks and NBFCs to provide low-cost loans for rooftop solar systems.

Ghar Ghar Solar has partnerships with financing partners like Bajaj Finserv, HDFC, and L&T Finance, allowing customers to:

• Install systems with zero upfront cost
• Pay through monthly EMIs
• Choose repayment tenures from 3 to 5 years

This effectively means you can go solar by paying the same amount you'd otherwise spend on your electricity bill — and once the EMIs are done, your power is essentially free.

6. Eligibility Criteria for Subsidy & Incentives

To benefit from the government incentives:

• You must own a residential property with rooftop space
• Your home must have a valid electricity connection
• The system must be installed by an approved vendor like Ghar Ghar Solar
• You should apply through the government’s portal or with the help of your vendor

7. Documents Required for Installation & Subsidy

To process your installation and subsidy, you’ll need:

• Aadhaar and PAN card
• Recent electricity bills
• Bank account details for subsidy transfer
• Property ownership proof or a No Objection Certificate (NOC) from the landlord if rented
• Photos of the site (these will be taken by our installation team)

8. Real-World Scenario: Financial Breakdown

Suppose you install a 3 kW system priced at ₹1,70,000.

Here’s how the math works:

• You get a subsidy of ₹78,000, directly from the government
• Your net payable is ₹92,000
• You can finance this via EMIs of approximately ₹2,550 per month for 3 years
• Your monthly electricity bill reduces from ₹3,000+ to under ₹300

In just 3 years, you break even, and for the next 20+ years, your electricity is practically free — saving over ₹6–8 lakhs across the system’s lifetime.

Conclusion

India’s rooftop solar policy is now more homeowner-friendly than ever. With central subsidies under PM Surya Ghar Yojana, net metering benefits, and accessible financing, solar is no longer a luxury — it's a smart investment.

If you're in Bihar or any other Indian state with good sun exposure, there's never been a better time to go solar.

‍