Subsidy for Commercial Solar Installations in India

Let me be straightforward with you because most blogs on this topic aren’t: there is no direct central government subsidy for commercial solar installations in India. 

If you’ve been searching for a subsidy to install solar panels at your factory, office, or shop and found confusing or conflicting answers you’re not alone.

The good news is that businesses are far from left out. There are state-level incentives, tax benefits, accelerated depreciation, and green energy schemes that make commercial solar one of the smartest investments a business can make right now. And if you’re a homeowner or running a small setup under 10 kW, the PM Surya Ghar subsidy process is genuinely simple once you understand it.

Let me break all of this down clearly.

How to Apply for Solar Panel Subsidy Online in India

The central government’s flagship solar scheme – PM Surya Ghar Muft Bijli Yojana is designed primarily for residential homeowners. 

Here’s how to apply for solar panel subsidy online in India step by step:

• Step 1: Visit the official portal pmsuryaghar.gov.in
• Step 2: Register using your mobile number and verify with OTP. Enter your name, state, district, email ID, and electricity consumer number.
• Step 3: Click on “Apply for Solar Rooftop” – select your state, DISCOM, and electricity board details.
• Step 4: Choose a vendor from the MNRE-empanelled list on the portal. Only approved vendors qualify for subsidy.
• Step 5: Once installation is complete, submit photos, net meter approval, and the completion certificate.
• Step 6: The subsidy is directly credited to your bank account, no middlemen, no cash handling.

The helpline number for any query is 15555.

Subsidy Amounts – Residential Solar (PM Surya Ghar)

System Capacity	Subsidy Amount
1 kW	₹30,000
2 kW	₹60,000
3 kW and above	₹78,000 (maximum)

The subsidy covers 60% of cost for up to 2 kW and 40% for the 2–3 kW range. Beyond 3 kW, the subsidy is capped at ₹78,000 regardless of system size.

Is There a Subsidy for Commercial Solar Installations in India?

Here’s the honest answer: 

No central government subsidy exists for pure commercial solar installations, factories, shops, offices, and industrial units are not eligible under PM Surya Ghar.

However, businesses are far from disadvantaged. 

Here’s what’s actually available:

1. Grid-Connected Rooftop Solar Scheme (Phase II)

This MNRE scheme does extend to businesses and institutions for rooftop solar:

• 40% subsidy for systems up to 3 kW
• 20% subsidy for capacity between 3 kW and 10 kW
• Must use empanelled vendors and MNRE-approved panels
• Applied through the National Portal or respective state DISCOM portals

2. Accelerated Depreciation (AD) Benefit

This is the most powerful financial tool for commercial solar users in India:

• Businesses can claim 40% accelerated depreciation on solar assets in the first year
• Significantly reduces taxable income
• Works for any system size no cap
• Available under the Income Tax Act

3. State-Level Commercial Solar Incentives

Several states offer additional support specifically for businesses:

State	Benefit
Uttar Pradesh	₹2.5 crore/MW additional incentive for open-access plants
Telangana	Up to 40% reimbursement under GCRT Phase II
Gujarat	Generation-based bonuses for MSME segment
Delhi	Capital subsidy over and above MNRE rates
Haryana	Up to 500 kWp for commercial group housing
Maharashtra	State top-up subsidies aligned with central scheme

4. PM-KUSUM Scheme (For Farmers and Agricultural Businesses)

If your commercial activity involves agriculture, this scheme is highly relevant:

• Component A: 10,000 MW of grid-connected solar plants on farmland
• Component B: 20 lakh standalone solar pumps
• Component C: 15 lakh grid-connected pumps converted to solar
• Up to 60% subsidy on solar pumps with 30% loan assistance
• Farmer pays only 10% of total cost

Who Is Eligible for the PM Surya Ghar Subsidy?

To qualify, you must meet all of the following:

• Indian citizen
• Own a home with a rooftop suitable for solar
• Have a valid electricity connection in your name
• Use Made-in-India DCR modules (Domestic Content Requirement)
• Have not previously received a solar subsidy for up to 3 kW systems

Check How to check PM Surya Ghar application status

Why Commercial Solar Still Makes Financial Sense Without a Subsidy

Many business owners assume solar isn’t worth it without a direct subsidy. The numbers tell a different story:

Parameter	Commercial Solar (25 kW+)
Average installation cost	₹12–18 lakh (varies by state)
Annual savings on electricity	₹3–5 lakh
Payback period	3–5 years
System life	25+ years
Accelerated depreciation benefit	40% in Year 1
Net metering	Export surplus units to grid

After the payback period, your business essentially runs on near-zero electricity costs for 20+ more years.

Check this if you are NRI people Can NRIs claim solar subsidy in India

Final Word

If you’re a homeowner, the PM Surya Ghar subsidy of up to ₹78,000 combined with net metering makes rooftop solar one of the best financial decisions you can make right now. Apply online at pmsuryaghar.gov.in, choose an empanelled vendor, and the subsidy lands in your account no broker needed. If you’re a business, the accelerated depreciation benefit, state-level incentives, and sub-5-year payback period make commercial solar just as attractive even without a direct central subsidy.

Companies like Kondaas Automation help businesses navigate the scheme selection, system sizing, and documentation to make sure you get the maximum financial benefit available for your specific setup.

Common Questions About Solar Subsidy in India