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0 In 2025, the solar scenario is on a peak for India. With these ambitious climate goals, growing electricity prices, and the need for energy security, the Indian Government has introduced a whole basket of smart policies, terrific incentives-subsidies, tax breaks, duty cuts, and more-in making solar investments as not only green but also eco-friendly too. If you are a homeowner who seeks to cut down on electricity bills, a farmer seeking reduced irrigation expenses, or a businessman whose aim is to yield better ROI, then this guide lets you decode the benefits and how Solex Energy ensures that you unlock them easily.
1. Supercharged Rooftop Subsidies
What’s on offer?
Under Phase II of the Grid-Connected Rooftop Solar Programme, the government offers capital subsidies to make solar installations affordable for residential users:
- 40% capital subsidy on rooftop systems up to 3 kW
- 20% subsidy on additional capacity between 3–10 kW for homes, and up to 500 kW for RWAs and group housing societies
This means a 3 kW system, which typically costs ₹1.5–2 lakh, becomes significantly cheaper with the subsidy—and even more so when combined with state-level incentives.
How to apply:
- Register on the National Portal for Rooftop Solar or your local DISCOM’s portal
- Choose an empaneled vendor (Solex Energy is MNRE-approved)
- Install the system, complete net-metering formalities, and the subsidy is credited directly to the vendor, reducing your upfront payment.
Pro Tip: Some DISCOMs offer state-level top-up subsidies (5–10%) in addition to central incentives. Always check your local electricity board’s announcements to get the best deal.
2. PM-KUSUM: Free Solar Pumps for Farmers
Why it matters:
While agriculture continues to remain the backbone of India, diesel and gridpower pumps remain costly and often unreliable. The PM-KUSUM scheme empowers the farmer to have clean and irrigate free of cost through solar energy.
Here’s what’s available:
- Component B:
- Up to 60% subsidy on standalone solar pumps up to 7.5 HP
- Split as 30% MNRE + 30% State Government share
- Component C:
- 60% subsidy to solarize existing grid-connected pumps
- The remaining 30–40% can be financed via low-interest agricultural loans
With solar pumps, you can irrigate fields without fuel bills and even sell excess solar power to the grid, generating passive income.
3. Tax Breaks That Turbocharge ROI
Investing in solar isn’t just about saving energy—it’s about maximizing your tax efficiency.
Accelerated Depreciation
On the better side, businesses under the Income-Tax Act Section 32 can depreciate their solar investment by 40% in Year 1. This depreciation can substantially reduce taxable income, depending on whether you are an MSME, a hotel, or an industry that is high on energy consumption. For instance, the solar system of ₹10 lakh will give the depreciation benefit of ₹4 lakh in the very first year, reducing the payback period and enhancing ROI.
GST Benefits
- Solar modules and inverters attract 12% GST.
- Mounting structures, cables, and BoS (Balance of System) components: 18% GST.
- Businesses can avail input tax credit, reducing their net cost.
These provisions make solar more competitive when compared to traditional diesel generators or grid power—especially for commercial and industrial setups.
4. Customs Duty Cuts & Emerging Perks
Reduced Import Duties
Starting 2 February 2025, the Basic Customs Duty (BCD) on imported PV modules and cells has been slashed:
- From 40%/25% to just 20% + 7.5% AIDC
- Encourages cost-effective system integration, especially for developers using specialized or imported panels
ISTS Charges Waived
Projects that are commissioned up to 30 June 2025 will have zero inter-state transmission charges and losses. This will save about ₹0.40 — 1.80/unit on power transferred from one state to another. Such regulations are very beneficial for utility-scale solar and hybrid plants.
100% FDI: Green Light for Global Investors
Currently, the government has permitted 100% Foreign Direct Investment (FDI) in renewable energy via the automatic route. Consequently, this renders the solar sector in India extremely attractive for global capital influx, bringing along technology, expertise, and scale.
PLI Scheme for Solar Manufacturing
Under the PLI scheme, a grant has been assigned for ₹24,000 crores as incentives to companies setting up high-efficiency PV module manufacturing units. Solex Energy with Giga Factory at Surat has an opportunity to benefit and in turn, supply state-of-the-art modules to the customers at competitive pricing.
Solex Energy: Your Expert Navigator
It is about entitlement elements, the types of schemes, and understanding how to apply for it, optimizing for savings, apart from just installation. That’s where Solex Energy comes in.
Here’s what we offer:
- Tailored Eligibility Assessment:
We analyze your location, usage, and structure to pinpoint your exact subsidy eligibility and tax benefits. - Seamless Application Support:
From portal registrations to net-metering and subsidy disbursements, our experts handle the entire process—no red tape for you. - Optimized System Design:
Using our Tapi Series high-efficiency modules and in-house EPC teams, we design systems that capture the full subsidy slab and performance benefit. - Financial Transparency:
Every quotation includes a clear ₹-wise breakdown of cost, subsidy, GST credits, depreciation, and payback period—zero hidden charges. - After-Sales Support:
Post-installation, we help you claim tax benefits, manage warranties, and ensure long-term solar performance.
Why We’re Your Summer Solar Sidekick
At Solex Energy, solar is not just a business – it is a commitment. Backed by over 25 years of experience, an in-house R&D, and AI-powered quality controls, we provide solar systems that promise efficiency, durability, and bankability.
Whether it be a homeowner saving on bills, a farmer pumping water for free, or an industrialist offsetting carbon emissions, we ensure you claim every single rupee of government incentive. From Surat, to your rooftop or farmland- we stand with you in every form, frame, and fuse.
Ready to Harness 2025’s Solar Windfall?
With central subsidies amounting to 40%, farm pump subsidies of 60%, tax rebates, reduction in import duty, and production-linked incentives, 2025 has turned out to be the best year to switch to solar energy. Do not let red tape obstruct your energy revolution.
📞 Book a free consultation with a Solex Solar Specialist now and turn sunshine into savings. Your clean-energy future is only one smart decision away!
