Solar Energy Subsidy in Maharashtra
Government of India has initiated solar energy subsidy schemes to help individuals and organizations procure solar energy systems at reduced capital costs. These solar subsidy schemes are a part of the Jawaharlal Nehru National Solar Mission in January 2010 to promote electricity generation using solar energy.
Solar energy subsidy in Maharashtra is being administered by MEDA (Maharashtra Energy Development Agency).
- 21st August 2018: MEDA has finalized the benchmark rate for FY 2018-19 for customers eligible to obtain Central Financial Assistance (subsidy) on grid connect rooftop solar plant.
- 15th February 2018: As per the circular issued by MNRE on 15th February 2018, the subsidy (Via MEDA) is extended to 15 months from the date of issue.
Maharashtra is one of the largest power producing states in India. With the increasing population and urbanization, the power requirement has drastically risen. Government of Maharashtra has been promoting the solar energy as an alternative and independent source of electricity and has set a target of 7500 MW of solar power generation capacity by 2019.
There is a substantial thrust and incentives from the government to achieve this target. The residential rooftop solar power plants are crucial to make people energy efficient and more importantly, it can be achieved at the individual level and with comparatively lower investment. Further in the article, we will discuss the government solar panel subsidy in Maharashtra.
What is the solar subsidy scheme in Maharashtra at present?
Maharashtra rooftop solar policy complies with the subsidy available from the central government. Accordingly, the subsidy can be availed on installation of rooftop grid connected solar plants as either of the following-
- 30% of the project cost (or)
- 30% of the benchmark cost, whichever is lower.
The Government of Maharashtra has set the benchmark cost of Rs 61,000 per KW of solar PV installation capacity. I.e. one can receive atmost Rs 18,300 per KW as subsidy on their solar power plant.
Note: To understand the grid connected solar PV system, please visit types and methods of solar installation.
How to apply for solar energy subsidy in Maharashtra?
Who is eligible for solar energy subsidy in Maharashtra?
Following is the list of complexes that are eligible for solar power plant subsidy in Maharashtra –
Residential: All type of residential buildings
Institutional: Schools, Universities, Colleges, and Hospitals
Social: Community Centres, Orphanage, Welfare homes, etc; registered under Societies Registration Act 1860 and Indian Trust Act 1882.
Note: No subsidy or financial assistance is applicable for government buildings, institutions, and PSUs.
What is the procedure to get solar subsidy in Maharashtra?
The subsidy approval process for eligible customers in Maharashtra is conducted in the following steps:
- Eligible customers such as residential projects, schools, universities, welfare homes, orphanages, etc should first identify their solar project developer and issue purchase order of their solar services.
- The solar project developer will then prepare required documentation and submit it to MEDA online on behalf of the eligible customer
- After reviewing the documents and confirming their viability, MEDA will issue a provisional approval for the project
- Following the provisional approval, the solar project developer will commission and install the solar power plant at the site and submit a completion report to MEDA
- MEDA officials visit the site and perform site inspection, following which they will issue a subsidy grant letter to the eligible customer
- After all the processes have been successfully completed and fulfilled, the subsidy amount is directly credited to the account of the eligible customer within 2-3 months of issuing the grant letter.
What is the min and max rooftop solar PV installation capacity to avail subsidy from the government?
To avail subsidy on solar power plant in Maharashtra, the rooftop solar PV project should have a minimum capacity of 1 KW and maximum capacity of 500 KW for an individual, or at a single beneficiary location,.
How and when can one receive the subsidy on rooftop solar power plant?
According to Maharashtra solar policy 2017, the solar subsidy amount will be released as per the availability of funds to the project developer / project holder by MEDA after the project commissioning certificate is issued by MSEDCL and submission of certificate in respect of transmission of electricity from MSEDCL / MSETCL .
Usually one can expect to receive the subsidy between 1 and 1.5 years from the start of the project.
Is solar subsidy in Maharashtra applicable on bank loans on solar projects?
Yes, one can get the benefit of subsidy on their solar PV project even by opting financing options like bank loans. Insolergy helps in securing solar finance. The company has partnered with IDBI Bank Ltd. on pan-India basis, to assist eligible users to avail solar loans, and has helped many happy customers to realize their goal of adopting solar energy.
You might also be interested in: About Solar loans in India
Abbreviations used (in order):
MNRE: Ministry of New and Renewable Energy
PSU: Public Sector Undertaking
MEDA: Maharashtra Energy Development Agency
MSEDCL: Maharashtra State Electricity Distribution Company Limited
MSETCL: Maharashtra State Electricity Transmission Company Limited
EPC: Engineering Procurement and Construction
Get Solar Subsidy in Maharashtra Through Insolergy
Founded by IIT Bombay Alumni, Insolergy Technologies is an emerging leader in Indian solar energy industry. Insolergy installs grid-tied, off-grid and PV-Diesel hybrid rooftop solar power plants. To inquire about solar energy subsidy schemes in Maharashtra, Call / WhatsApp: 9082786504 or leave a message.