Electricity Saving Tips For Homes And Offices

Procedure to get subsidy on Solar PV Systems through NABARD in India

By on June 29, 2016

Note: As on January 2016, Government has released a priority list for processing subsidy claims. Schools, public institutions, etc are higher up on the priority list and residential projects are lowest in priority list. And thus getting subsidy on residential projects is getting increasingly difficult. NABARD has stopped the subsidy scheme in March 2015: https://www.nabard.org/uploads/Lighting%20circulat%2023%20March%202015.PDF

Supply of electricity is quite unreliable in most parts of India. Due to increased scheduled and un-scheduled power cuts in most of the cities in India, interest in using electricity generated through alternate sources has also increased. However, high capital cost of setting up systems to tap energy through renewable sources is deterrent in taking up large-scale deployments of the same. To promote electricity generation using solar energy Government of India launched Jawaharlal Nehru National Solar Mission in January 2010. The objective is to achieve large-scale deployment of Solar Energy Systems and also to assist domestic production of critical raw materials, components and products to achieve grid parity by 2022.

As part of this mission the Government has initiated a subsidy scheme to help individuals and organizations procure these Solar Energy Systems at reduced capital costs. The scheme is being implemented by IREDA (Indian Renewable Energy Development Agency Ltd.) through NABARD (National Bank for Agriculture and Rural Development). The scheme that was last modified on 15th March 2012 provides 40% subsidy on capital costs of Solar PV Systems for units located in both urban and rural areas in India.

The steps mentioned below outlines the process of purchasing a Solar PV System and also to obtain subsidy/loan through NABARD. We would like to thank our reader Mr Gopinath Srinivas for providing us details with his first hand experience of obtaining the subsidy.

  1. As a first step, it is important to choose the right manufacturer/supplier from whom you purchase the Solar PV system. The manufacturer/supplier should be a MNRE (Ministry of New and Renewable Energy) approved manufacturer/supplier. To get a list of approved suppliers in your area, you can check the link: http://www.mnre.gov.in/information/manufacturesindustriesarchitectsconsulting-organisation/
  2. Only the models approved by MNRE are eligible to be covered under the scheme. The list below gives models approved by MNRE:NABARD (Source: NABARD
    The benchmark cost of solar PV system as per a NABARD document (link) is Rs 270 per Wp. But the unit costs are revised from time to time and your manufacturer/supplier should be able to guide you properly on the same.
  3. In case the cost of the unit is less than the benchmark cost then the full 40% subsidy can be claimed. But if unit cost is more than the benchmark cost then the capital subsidy will be limited to the maximum capital subsidy ceiling as indicated in the table above.
  4. Only individuals, group of individuals, Self Help Groups (SHGs), JLGs (Joint Liability Groups), Non Government Organizations (NGOs) and Farmer’s club are eligible for subsidy through NABARD. Private/Public Limited Companies are not eligible for this subsidy.
  5. To avail the subsidy, you need to have an account with a scheduled commercial bank or a regional rural bank. Most public nationalized banks can be approached for this.
  6. 40% of the cost is subsidized and the rest 60% of the cost is eligible for a soft loan. However the margin to be paid by the beneficiary (out of the 60%) is decided as per RBI norms. The repayment period of the loan is 5 years. The interest rates are also as per RBI norms.
  7. To obtain the loan one has to submit the quotation and the documents available from the vendor. Vendor should provide the MNRE approval form, TIN number, project proposal, etc which needs to be submitted to the bank.
  8. After processing the loan and verifying all the documents, the banks provide loan and the documents are sent to NABARD for release of subsidy. The EMIs start as soon as the loan is processed; however release of subsidy through NABARD takes some time. As per MNRE, the interest on the loan should not be for the subsidy part.
  9. The banks have the right to recall the subsidy in case they observe that the subsidy is misused.

To find more details about the schemes, you can have a look at the following documents:

  1. Capital Subsidy Scheme for Solar Lighting and Small Capacity Solar PV systems
  2. Guidelines for off-grid and decentralized solar application.

Source of Information

NABARD website

MNRE website

More informational links on our website

More details on Solar PV Prices in India: Solar Panel Price in India

More details on Solar PV roof top systems are also available on our link: Roof-Top Solar PV system project for home and office

Understand more about basics of Solar PV systems on our link: Solar electric, solar thermal, power generation, inverters, grid, off-grid: clearing the cobweb

Get help in understanding financing options available to finance your Solar PV System: Financing Options for Solar Rooftop Projects in India

Here is a quick video that can guide you on Rooftop Solar PV buying in India:

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422 comments

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1
Ashok Kumar panda

How to apply govt subsid in solar panel under nabad.

2

Sir, I am residing in Jhunjhunu (Rajasthan )and I am interested in installing a 1 to 2 kw solar plant system could you please provide me the person to whom i should contact for further information

3

We arrange government as well as private power purchase agreements(PPA's) for our solar power plant clients all over India. We also arrange investors/financiers for our clients who are interested in setting up solar power projects all over India. We also do lowest priced EPC in India with high quality MNRE approved solar equipments. Please call us at 9915500493.

4

SSV COLLEGE HAPUR affiliated to CCS Univ Meerut is interested to know about the installation of solar panel

5

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Our products cater to a wide array of applications. From affordable home lighting systems for rural homes to solar hybrid inverters to power industries, Aura Energy has a product for every consumer at every price point. Our integrated platform, leveraging our expertise from products and services, offers customers efficient, reliable end-to-end solutions for their solar needs. As a trustworthy partner in your quest to lower your carbon footprint, we have taken care of every stage of the solar process –development, engineering, implementation, commissioning, service and maintenance.

Interested candidate may contact with us for dealer / distributor / channel partners : B Sen [email protected]

6

Hi Aura Team,
My Brother is planning to start business in Solar panel dealership in Bidar Karnataka. He can start immediately. Could you please provide us details about dealer.
Thanks,
Geeta

7
Hitender Sharma

I am running a school in Narnaul, haryana. There are a lot of power cuts in this area.
So, I want to install solar power system in my School. Let me know the details and requirements. I also want to know about discounts, subsidies and loans.
Email: [email protected] Phone: 9416478404

8

Sir, I am residing in Chennai and I am interested in installing a 1 to 2 kw solar plant system could you please provide me the person to whom i should contact for further information

9

Sir we live in rural area and here problem of electricity is very big issue. So i wish to use solar panel for that purpose. Pls help me and provide some contact details to whom I contact later.

10

I want to install 1 to 2 kw solar lighting system at my residence at near Bikramganj, Bihar. Pl. send me the details about total cost, installation process etc at the earliest. I will also need the brands and details abt each and every parts used with the warranty.

11

We can help you in setting up solar power plant anywhere in India with lowest priced EPC and high quality MNRE approved equipments. We also arrange private as well as government PPA’s and investors for your project. Plz call me at 9915500493 for complete details. Thanks.

12

I am a mechanical engineer having more than 30 years experience in o&m of captive power plants, abroad, interested to start up the business for supplying electricity from solar power system to newly constructed housing colony in Bhubaneswar.
Pl. guide me , who can guide me about the detailed procedure to set up the plant, financial help, capex & opex of the project , pay back period and yearly return.
my email id- [email protected], Contact No- 00966-503372696 (Saudi Arabia)

13
Om Prakash Gupta

What is rate of susist in u p at present and no batteries of 400 mah required in 15 kv and cost of project i am interested to install it at allahabad which declared as solar cirt. We running a hospital

14

If you have huge power bills every month(2 lacs+) and you are interested in installing solar power plant without any investment from your end and get around 20% discount in your power bill every month, please call us at 9915500493 for full details. Thanks.

15

We arrange government as well as private power purchase agreement(PPA) and investors for our clients interested in installing solar power plants all over India. We also do the lowest priced EPC all over India with high quality MNRE approved equipments. Please call 9915500493 for complete details. Thanks.

16

I HAVE AN APPLE GARDEN IN HP & INTERESTED TO INSTALL SOLAR PANEL IN BLANK SPACE BETWEEN APPLE TREES CAN I DO THIS? IF YES WHAT ABOUT SUBSIDY PROCEDURE AND PROJECT COST FOR ABOUT 6 BIGHAS

19

i want to installed 1kw roof top solar panel in commercial shop.
can i do the same.
iam staying in ambernath east thane -421501 area

20

please call me on 9158885926

21
Abhishek Jain (Mod)

You can certainly do the same if you have about a 100 sq ft roof area.

22

yes i am having 115 carpet ( build up is 225 sq ft )
But how and from where to get loan.
Please suggest

23

hi

25

sir,
i want to install solar pv plant of mnre approval company. but this company is not listed in geda(gujarat) chanel partner..then i put order to buy pv plant from this company then ,geda will give me subsidy available from mnre.(30%) for my rooftop power plant. or not.

26

dear sir please provide your details or call on 09158885926

27

bihar me koi plan h

28

Hello everyone....i have farming land in haryana and i'm interested in this solar project and looking for the valuable information like steps to set up 1 MW of plant.any help will be highly appreciated.Thanks in advance

29

We are into Solar EPC Business. We can install Solar PV System. You may contact me on my Email ID [email protected] or on my WhatsApp enabled mobile number 09891690306. We are based at Noida. Please send your details ASAP. Thanks.

30

any joining in Hanumangarh in Rajasthan

31
Dinesh kumar sharma

sir joining the NARBARD SOLAR ENERGY PV PV system please send me proposal my email add. and cont. 9982967908

32

I WANT TO INSTALL A SOLAR POWER PLANT AND GENERATED UNIT SUPPLY TO GOVERNMENT . HOW IT WORK

33

Hi Mr Rajesh Gupta Please provide your contact details.
Bujji
9701009993

35

Why NABARD Consider Rs 108 Per watt for solar capacity while actual price available in Market is Rs 50 per watt for good quality solar panel.

36
dinesh kumar sharma

sir i have electricals shop please how can i started bussiness from solar pv subsidy system

37

I installed 1 Kw solar system at my home last year in April 2016...Can I claim for Subsidy now ?

38

Mr.Nand Prakash if you want subsidy you have to take a loan from the BANK then only u will get subsidy

39

Instal solar power plant in your agricultural land anywhere in India and earn Rs. 15-20 lacs per month from 4 acres(1MW), 40% subsidy by the government. Please call me at 99155-00493 or mail at [email protected] for complete details. Thanks.

40
Galva Dharma Reddy

Dear Gurmeet Singh

Good morning ! I have 5 acres of waste land. I would like to install Solar Power Plant of 1MW. Would you please guide me in this regard.

Thank You.

41

Our investors have unlimited funds to invest in solar power, wind power and hydro power projects. Please send the complete details of your finance requirements to [email protected] or call at 99155-00493.

42

If you are running any school, college, hospital, factory, hotel, industrial unit etc. and your monthly power consumption is more than 15000 units, we can install solar power plant at your site at our cost. You need to pay your electricity bill to us at a minimum of 20% discount than the state electricity board of your state. For more details call at 99155-00493 or mail at [email protected]

43

I want to do in Madhya Pradesh MP , can you please give the contact details

44

Hi modal no 2 enquiry please call me mobile number 9275 282 817 please reply me

45

hi, i have agriculture land and home too....i want to know about govt. subsidy

46

We are the new Solar energy firm at Bangalore, having more clients in the field of institutions and industries.Most of them asking about subsidy's regarding institutional projects.How it available or what are the companies em-paneled here for providing this subsidy's right now. Urgent requirement.
Projects around 25 to 40 kw on grid projects.We would to take dealership or channel partner of that company.

47

Mr.Abhillash Nair contact me via whatsappon this no.7411579699 I will give details

48

We want to join this plz inform me at mob-9445887494 and mail- [email protected]

49

We want to know about the NABARD facility and scheme for subsidy plz share with my Mail and mob-9445887494 thanx for copration

50

We have poor fertile farming land on national highway (20 acres) in Yavatmal, Maharashtra . we are interested in doing business of solar power plant.

Can any one guide us. How to setup and start this business. Please give us information about this on 9987257589. Thanks in advance.

51
Pradhyumansinh Gohil

i interested in doing business of solar system ,

is there any contact in baroda (Vadodara, Gujarat) to understand the whole process and subsidy too

pls give information about this

Gohil Pradhyumansinh,Baroda. # 9574122646

52
shishir kumar singh

sir very goodmorning,
interested in doing business of solar ,

is there any contact in lucknow or raebareli to understand the whole process and subsidy too
pls give information about this

my contact no-09729881177,09992511175
my relaitive contact no in lucknow-09696167788[tarun singh]

53
shishir kumar singh

sir very goodmorning,

54

hi team,

i want to set up Solar in my home in Bangalore, plz guide me

55

Dear shamshuddin,
I'm Nishant, Solar Developer STARTUP, we would love to help you understand all about solar in Bangalore and develop a tailored project for you here.
We're based in Bangalore and would love to meet you.
Pls do call or 7411596395

56

Mr . Shamshuddin call me on 7411579699

58

Hi, plz contact for solar installation 09040881137

64

I would like to know about the quantum of subsidy on the electricity charges once the solar panels are installed.

65
Abhishek Jain (Mod)

Subsidy is only available for buying Roof Top Solar PV System (as explained in: https://www.bijlibachao.com/solar/grid-connected-solar-pv-rooftop-system-india-home-panel-subsidy-cost.html ) .....

If you go for a grid connected system then you will have to sell the excess electricity produced by your system to your electricity distribution company .... and the rates (of selling) are decided by your state's electricity regulatory commission which are part of net metering regulations in the state.

66

plz call us at 09040881137 and send ur mail id
Thanks

67
Gurpreet Singh Julka

Please mail me the price quotes for 5-10 kw for my residential purpose in delhi
My email id is [email protected]
Thanks

68

SIR I want solar power system for my gramy vikash sahkari samiti Ltd senpur dist.ambedakarnagar .224152( up) .I want 2kw grid solar system my office work .if you can help me please contact me 7309216288

69
RAM KUMAR CHAUDHARY

I WANT SOLAR POWER SYSTEM FOR MY HOUSE VILLAGE SEHJAWAS TEHSHIL SOHNA , GURGAON 1220102 IF YOU CAN HELP ME PLEAS HELP ME MY CONTACT NO IS 9711387428

74

Sir , solar skya ,
M apne ghar ke liye solar system intall krana chata hu..
Plz contact me on 9785378639

76

Hi Arpit,
I am living in Basti UP and I want to established solar setup in my village ,could please help me to get the information and what is the process ,Please explain me in details .

My Email id [email protected]

79

We provide Kotak Urja Pvt.Ltd from 1KW to 500 KW. We also serve our customers through our Dealer network all over India. Please get in touch with us at [email protected] or 9044064100. You may also visit our website and apply for product (batteries, panels, inverters, charge controllers) dealership in your area with an investment amount as low as Rs. 50,000/- .

Regards

Sunita Singh
Kotak Urja Pvt.Ltd (Distributor)

80

Hi Sunita,
I am living in Basti UP and I want to established solar setup in my village ,could please help me to get the information and what is the process ,Please explain me in details .
Also provide me your contact details so that I can get the more information .
My Email id [email protected]

81

Please provide your email id and location we can provide you detail
proposal or send your email at [email protected]

Rooftop Solar PV System -
On Grid(With Net Metering)
Off Grid (with Battery)
Solar Photovoltaic Modules Panel
Solar Water Heater ETC & FPC
Solar Led Street Light
Solar Water Pump
Office No.9044064100
Regards-
Arpit Jaiswal
9455004100
Kotak Solar pvt ltd(distributor)
Lucknow

82
suresh kumar pal pal

sir i am from gonda uttar pradesh, मेरे पास १ एकड् जमीन है जिसमे जिसमे मैं सोलर ग्रिड लगवाना चाहता हू।

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