A set of solar panels describing the benefits and drawbacks of solar panel subsidy in India in 2024

Benefits of Solar Panel Subsidy in India

Solar energy is one of the best sources of energy, which includes the conversion of sunlight into electricity. Since it does not require any natural or non-renewable resources, more people are turning to this source of energy and getting a solar inverter fitted into their homes.

To add to the awareness, the Government of India has also declared subsidies on grid-connected solar inverters for homes. The main purpose is to fight challenges like solar finance for residential homeowners. While the Solar Panel Subsidy in India (2024) brings with it many benefits, there are also many drawbacks to it. What exactly are these? Let us discuss this in this article.

Benefits of Solar Panel Subsidy in India

Listed below are the various benefits of this subsidy:

Benefits for Customers

The best part about the Solar Panel Subsidy is that it helps reduce the worry about solar panel price in India. Since this subsidy is only applicable to residential homes, people are sometimes reluctant to make an investment in solar energy equipment. However, the financial assistance that comes with such subsidies motivates them to use solar as their primary source of energy. Furthermore, customers will also get a performance warranty of 5 years under this scheme.

The subsidies will be variable with the capacity of the system in kilowatts. How? Let us find out:

Capacity of System% of Solar Subsidy
1 – 3 kW40%
4 – 10 kW20%
> 10 kWNot Applicable

Benefits for Channel Partners

The channel partners can also avail many benefits from this subsidy. Since people will not be worried about solar inverter price much, channel partners will get access to a large customer base. As their sales expand, the business owners can expect great revenue. Furthermore, channel partners will also help the customers understand the concept of solar energy better, which will increase awareness about the same.

Benefits for DISCOMS

When residential areas get solar panels, they will consume less power from other sources. This power can be given to the commercial areas. Hence, commercial areas will experience a steady flow of energy, thereby ensuring that their immense demands are fulfilled.

Drawbacks of Solar Panel Subsidy in India

Of course, the Solar Panel Subsidy in India also has some drawbacks. If a customer gets a solar system fitted under the government scheme, they will get only a warranty of 5 years on the full system. Furthermore, channel partners will also face some issues. For starters, they will have to provide warranty and system service for the coming 5 years. Moreover, it is a big investment to make for them. Lastly, there is no guarantee that the subsidy amount will be returned from the DISCOMs after the channel partners have given it.


That brings us to the end of this article about the Solar Panel Subsidy in India (2024). We hope the information provided by us proves to be helpful to you. If you want to know more about solar energies or want to get a solar inverter for home fitted, get in touch with the team at UTL Solar!

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