solar benefits

Central Financial Assistance(MNRE Subsidy)

30percent-MNRE-subsidy

According to the latest notification by MNRE subsidy of 30%
on Benchmark Capital Cost is available for all consumers
including the following consumer categories:

Residential All types of buildings, Institutional Schools.
Health institutions, Medical colleges, Hospitals.
Educational institutions, R&D institutions.
Government Both Central & State Governments Buildings
All Government offices, Government PSU.
All buildings owned by Govt directly or by any Govt.-owned societies.
Companies, corporations or organizations.

All Panchayati Raj buildings.
Government organizations owned systems
Private, commercial and industrial organizations.

Net Metering Benefits:

In grid-connected Solar Photo-Voltaic (SPV) systems, solar energy is fed into the building loads that are connected to the public electricity grid through a service connection with surplus energy being fed into the grid and shortfall being drawn from the grid.

net-metering. solarenergypanels.in

Production of surplus energy may happen when solar energy produced exceeds building load energy demand. This surplus is fed into the grid. During the night, or when during the day energy demand in the building exceeds solar energy production, energy is drawn from the grid

Net metering is the net energy between export of generated energy and import of grid energy for a billing month

Return on investment - ROI on Solar

Residential and Commercial customers who are paying more than ₹1,500 in monthly electricity bills should consider installing a grid tied solar net metering system to save their electricity bills by 20% – 30%. Look at the ROI Calculator below for details.

Solar Plant	Solar Plant Cost	Govt. Subsidy	Cost After Subsidy	Units Monthly	Savings Monthly	Payback (Month)
1KW	89,998.00	27,000.00	63,000.00	150	1,500.00	42
2KW	1,68,245.00	50,473.50	1,17,771.50	300	3,000.00	40
3KW	2,35,550.00	70,665.00	1,64,885.00	450	4,500.00	38
4KW	3,02,813.00	90,843.90	2,11,969.10	600	6,000.00	36
5KW	3,70,014.00	1,11,004.20	2,59,009.80	750	7,500.00	34
10KW	7,00,000.00	2,10,000.00	4,90,000.00	1500	15,000.00	32

This is an approx estimate:

Tax Benefits:

Commercial, Private and Industrial customers can leverage Accelerated depreciation benefit, Solar power generation projects have the option of profiting from Accelerated Depreciation benefit by the Central Government, as per Section 32 of the Income Tax Act, 1961. Companies can use this to substantially reduce tax burden in the first few years of the project, up to 100% of the project cost (80% accelerated depreciation and 20% additional depreciation)

Tax benefit on solar

Under Section 80-IA of the Income Tax Act, 1961 the Central Government provides a 10-year tax holiday, in which the beneficiary has the freedom to choose a 10-year continuous period in the first fifteen years of the project life to avail the tax benefit. The projects are taxed using the Minimum Alternate Tax (MAT) rate, which is significantly lower than the corporate tax rate

The Central Government has mandated concessions and exemptions on specific materials imported for manufacture of solar power generation products as well as for use in solar power generation projects

Procedure to get MNRE Subsidy:

Submit a project report with technical and financial details, operations and maintenance plan along with system monitoring and reporting details to MNRE via district head of your state nodal agency
MNRE evaluates your project on technical and financial points
After your project is approved by MNRE, Open tenders are invited by your state nodal agency and a channel partner will be selected from open bidding process
Channel Partner completes the installation process

MNRE Subsidy Process

SNA inspects your installation to ensure that only MNRE approved components are installed
Subsidy amount is released to channel partner directly from MNRE
You will be responsible for payment of 70% of the system cost, if you chose to finance your solar plant, you may work with you bank to procure financing 70% of the system cost.