Summary of Incentives and Subsidies for Renewable Energy Products by MNRE
India’s energy demand has been growing rapidly as a result of the industrial growth as well as the rise in household energy consumption. India ranks 6th in the world in terms of energy demand accounting for 3.5% of the total world commercial energy demand in 2001 (Planning Commission of India). Most of the energy requirements in India are being fulfilled by fossil fuels that further increase our dependency on imports. To overcome the issue of energy security, Government of India is supporting increasing involvement of renewable energy sources in the total energy mix.
As per the latest announcement, there are a number of financial incentives and subsidies by the Ministry of New & Renewable Energy (MNRE). These incentives and subsidies are applicable for a number of renewable energy products available in the market.
Details of the products with their average cost and subsidies are given below:
| Sr. No. | Name of the Product | Cost Range(in Rs.) | MNRE Subsidy(in Rs.) |
| 1 | Solar Water Heating Systems (2 Sq. Meters) |
13,000 – 20,000 |
6000 – 6600 |
| 2 | Solar Cookers a)Box Type Solar Cooker b)Dish Type Solar Cooker c)Scheffler Dish Cooker |
a)3,500 to 4,200 b)6,500 to 8,000 c)15,000 to 20,000 |
30% of the product cost (Maximum).In Special Category States
60% of the product cost (Maximum)
|
| 3 | Solar Home Lighting Systems | 11,000 – 15,000 | |
| 4 | Solar Street Lighting Systems | 17,000 – 22,000 | |
| 5 | Solar Lanterns | 1700 – 3000 | |
| 6 | Solar Pumps |
1,70,000 / kW |
|
| 7 | Family Type Biogas Plants (2 Cubic m) |
20,000 to 25,000 |
8,000 to 14,700 (depending upon location) |
| 8 | Small Wind Turbines for off-grid applications |
2,00,000 / kW |
Up to 120,000 /kW |
| 9 | Water Mills |
70,000 – 80,000 |
35,000 |
Source: MNRE, Press Information Bureau
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About The Author
Shailesh
Shailesh is post graduate in Environment Management from Forest Research Institute (FRI) University, Dehradun, India. Presently he is working in the areas of Environmental and Renewable Energy Advisory Services. He has started GreenCleanGuide.com during his college days.
I required loan for Solar Plant Installation.
You should prepare Detailed Project Report (DPR). A good bankable DPR can help you to secure loan from most of the banks.
Dear Shailesh,
I reside in Bhopal (MP) and have installed 5kwh solar power unit by my own means on the roof of my house for use of show room and domestic consumption. Whether I can get subsidy and how it an be claimed and from whom ? What other benefits are available to me.If power surplus remains with me, at what price and how I can sell it to MPEB. And what more benefits are available to me.Will you please elucidate. Thanks.
J.P. Madvaiya
Thanks for your comment. You can visit following webpages for relevant information. One of this is Madhya Pradesh Solar Policy 2012.
http://mnre.gov.in/file-manager/UserFiles/guidelines_sbd_tariff_gridconnected_res/Madhya%20Pradesh%20Solar%20Policy%202012.pdf
http://www.mnre.gov.in/solar-mission/jnnsm/introduction-2/
1mw solar plant any subsidy ?
Hi Shailesh,
Pls refer the link for Tamilnadu Solar Policy 2012 or 2013
WE ARE PLANNING TO INSTALL SOLAR PUMPSET FOR COVERING 10 ACRE AGRICULTURE LAND CAN YOU PL SUGGEST TO WHOM WE SHOULD APPROACH TO GET SUBSIDY AND OTHER INITIATIVES TO BE TAKEN. WE RESIDE IN A VILLAGE CALLED ALAMANDA IN VIZIANAGARAM DISTRICT – ANDHRA PRADESH
KSSN REDDY
Hi I would like to know the subsidies and insentives to set up a biomass fuel pellet unit in Karnataka. Cost of project 1,00,000,00.
Please refer official website of karnataka renewable energy development agency for more information.
Dear Shailesh,
I am taking dealer ship of wind turbines for Andhra Pradesh… and i want present subsidy for those people who purchase these products… will you give the details for that..
thank you
Hi Shailesh,
I have made my own solar panels from solar cells I got from china.
Current capacity is 400 W. I plan to add 1600W more. This is for my farm at Karjat, Maharashtra,
How can I claim subsidy if I have not bought the system from MNRE channel partners. Is there a way.
Thanks
Vinod
Hi Vinod, currently you can claim subsidy; if you have bought system components from MNRE channel partners only. There is no way out.
Thanks Shailesh for the info.
Anyway it still worked out cheaper than buying from MNRE partners even after claiming subsidy.
I made 4 140W panels each with 36 nos. X (6″x6″ A grade monocrystalline cells-4 watts each) and it cost me totally around 45 K along with alumunium channel frames and toughened glass.
Only thing is that it was very labour intensive. Soldering and fixing took 1 full day for each panel.
Vinod
Forgot to mention that the 45K includes a 12v/24v 100A controller too.
Thanks for sharing this information. Chinese modules are cost effective. Many people prefer them. How is your experience with them (in terms of efficiency)?
MNRE Subsidy for Wind and Solar per MW is how much rupees?
Dear sir,
Its a pleasure to know about the subsidy and their details through the above comments,
and i like to know about ” carbon revenue ” of the individual solar power plant. Where as most of the carbon emission takes place from the burning of fossil fuels..and the SPV Power plants are helpful in reducing it. So, how far we are to getting carbon emission suppression and it would be an added subsidy or like savings towards helping the more individual to take intiative.
By,
Vishak J.
Hi I would like to know the subsidies for domestic solar lighting in karnataka. plz help me
i would like to establish a wind mill of capacity 10 kw for residential use
how do i avail govt subsidy for it
SIR
1)can you please tell me that what is the subsidy plan in himachal pradesh for home use solar (like solar streat light,solar water heater etc)
2) and also mention the indian government plan on subsidies for above mentioned solar system.
thanks
SIR
can you please tell me what is the procedure of availing subsidy on solar inverter from MNRE