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Government Support

Solar Subsidies & Incentives Available in 2026

From PM Surya Ghar residential subsidies to corporate accelerated depreciation — a complete guide to the financial support available for solar installations in India.

💡 Homeowners get up to ₹78,000 under PM Surya Ghar. Businesses get 40% accelerated depreciation in Year 1. We help you claim both. Get a Free Estimate →
Residential

PM Surya Ghar Muft Bijli Yojana

Launched in February 2024, PM Surya Ghar is India's largest residential solar scheme — targeting 1 crore households with subsidised rooftop solar and free electricity (up to 300 units/month).

1 kW System ₹30,000
₹30,000/kW central subsidy · Ideal for 1–2 BHK · ~120 units/month generation
2 kW System ₹60,000
₹30,000/kW central subsidy · 2–3 BHK · ~240 units/month generation
3 kW System (max) ₹78,000
₹30K for 2 kW + ₹18K for 3rd kW · Maximum subsidy capped at 3 kW · ~360 units/month

Eligibility Criteria

  • ✓Indian household with sanctioned DISCOM connection
  • ✓Must own the rooftop (or have owner's consent)
  • ✓No prior solar subsidy under any scheme
  • ✓System must be from MNRE-approved vendor
  • ✓Application via National Portal (pmsuryagarh.gov.in)
Subsidy Disbursement

Credited directly to your bank account via DBT within 30 days of DISCOM inspection and net meter commissioning.

Corporate / Business

Section 32 Accelerated Depreciation

40% Depreciation in Year 1

Under Income Tax Act Section 32, solar energy devices qualify for accelerated depreciation at 40% Written Down Value (WDV) in the first year. For a manufacturing company in the 25% tax bracket, this can reduce the effective cost of a solar project by 10–12%.

Example: ₹1 Cr Solar Project
Project Cost₹1,00,00,000
Year 1 depreciation (40%)₹40,00,000
Tax saving at 25% rate₹10,00,000
Effective Net Cost₹90,00,000
Get AD Structured Proposal

Net Metering Benefits

Under net metering regulations, surplus solar power exported to the grid earns bill credits at a buyback rate set by your DISCOM. TSSPDCL, APEPDCL, and BESCOM all have active net metering frameworks.

GST Input Tax Credit (ITC)

Solar EPC contracts attract 5% GST (as of 2026 Budget). GST-registered businesses can claim ITC on the solar purchase, further reducing effective cost. Individual solar components may attract 12–18% GST where ITC offsets the differential.

IREDA & Bank Solar Financing

IREDA (Indian Renewable Energy Development Agency) offers project financing at preferential rates for solar. SBI Green Loan, HDFC Solar Loan, and Canara Bank solar schemes are also available for both business and residential borrowers.

Feed Your Excess to the Grid

Net Metering — How It Works

Net metering lets you export surplus solar generation to the DISCOM grid and get credit against your consumption at night or on cloudy days. Effectively, your rooftop becomes a generator and your bill drops to near zero.

Aerial view of grid-connected solar installation
Net Metering
TSSPDCL · APEPDCL · BESCOM
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Daytime: Generate & Consume

Your solar panels generate power. Your home or facility consumes it directly — no DISCOM charge.

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Excess: Export to Grid

Surplus power flows back to the DISCOM grid. Your bi-directional meter records the export.

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Night: Draw from Credit

At night, you draw grid power — offset against your export credits. Monthly bill = only the net difference.

Start Your Net Metering Application →

State-wise Net Metering Rules

StateDISCOMMax CapacityExport Rate
TelanganaTSSPDCL / TSNPDCL1 MWAvoided cost tariff
Andhra PradeshAPEPDCL / APSPDCL1 MW₹2.50–3.50/kWh
KarnatakaBESCOM / GESCOM500 kW–2 MW₹2.85–4.00/kWh

Our Net Metering Track Record

We've processed net metering applications with TSSPDCL, APEPDCL, and BESCOM. Our process typically achieves DISCOM approval in 45–60 days — versus the industry average of 90–120 days.

Flexible Finance

Every Budget Has a Solar Solution

From outright purchase to zero-cost RESCO — we've structured every financing model so that "we can't afford it" is never the real answer.

ModelUpfront CostWho Owns SystemBest ForMonthly Saving
Outright Purchase₹1.5L–3 Cr+YouMaximum lifetime savings, tax benefit seekersHighest (100% savings post-payback)
Solar Loan (EMI)20–30% down paymentYouSpread cost; savings offset most of EMINet savings from Month 1 in most cases
RESCO / PPA₹0ARIA Green EnergyCash-flow priority; no capex appetite15–20% below DISCOM rate from Day 1
Lease Model₹0Leasing companyMid-term option; asset transfer possibleTypically 10–15% below DISCOM
SIDBI Green Scheme10% marginYouMSMEs — low interest rate (7–9%)High; subsidised finance reduces effective cost

Banking Partners We Work With

🏦 HDFC Bank Solar Loan
🏦 Tata Capital Green Finance
🏦 SIDBI MSME Energy
🏦 SBI Solar Energy Loan
For Large Consumers

Open Access Solar — For Loads Above 1 MW

Industrial facilities with demand above 1 MW can access solar power through Open Access — bypassing the DISCOM entirely and sourcing directly from a solar plant at ₹2.5–3.5/kWh vs DISCOM's ₹7–10/kWh. Savings: 35–55%.

  • Eligible if connected load exceeds 1 MW
  • Wheeling charges + cross-subsidy surcharge applies
  • Net saving still 30–40% vs DISCOM tariff
  • Group captive: multiple consumers pooling demand for a shared plant
  • Long-term PPA with solar developer: 15–25 years
Enquire About Open Access →
Large ground-mount solar plant for open access and group captive projects
Open Access
Loads Above 1 MW
Group Captive Structure

Your Consortium. Your Solar Plant.

5–8 businesses with collective demand of 1–2 MW can form a consortium and build a shared ground-mount plant. Each entity gets power at ₹2.5–3.5/kWh — no single entity bears the full capex.

Common Questions

Finance & Incentives FAQs

How do I claim accelerated depreciation?
Under Section 32 of the IT Act, solar power generating equipment qualifies for 40% accelerated depreciation in Year 1. You'll need the commissioning certificate and invoice from us — your CA claims this in the ITR for that financial year. We provide all supporting documents.
How long does net metering take in Hyderabad?
TSSPDCL's official timeline is 30 days, but in practice it takes 45–75 days for inspection, meter installation, and go-live. We've consistently achieved this in 45–60 days through proactive follow-up — you don't need to visit the DISCOM office.
Can a school get zero-cost solar through RESCO?
Yes. Schools are one of our preferred RESCO customers. We assess rooftop size, monthly bill (minimum ₹1L/month for viability), DISCOM connection stability, and building tenure. If all qualify, we offer full RESCO with no investment required from the institution.
Can I claim GST input tax credit on solar?
Yes. Solar EPC contracts attract 5% GST as of the 2025 rate cut. GST-registered residential and C&I buyers can claim Input Tax Credit on this GST, improving cash flow and shortening payback.
Quick Check

Which Scheme Applies to You?

Answer 3 quick questions and we'll tell you which financial incentives you qualify for.

Maximise Your Solar Incentives

ARIA helps you claim every applicable subsidy, depreciation benefit, and net metering credit — built into your project proposal.

Get Structured Proposal Residential Subsidies →