Why Solar Power Incentives Matter in India
India has emerged as a global leader in renewable energy adoption, and solar energy is at the heart of this transformation. The Indian government along with other state governments offer a variety of incentives to encourage the use of solar energy. These initiatives aim to reduce the financial burden of installing solar systems, making them more accessible. These incentives, paired with the tax benefits, present a lucrative opportunity for businesses to embrace solar energy especially in metropolitan cities like Mumbai. Whether it is a rooftop solar scheme or leveraging solar EPC companies for installations, affordable installation is no longer a distant dream.
1. The Pradhan Mantri Kisan Urja Suraksha Evam Utthaan Mahabhiyan (PM KUSUM) Scheme
The PM KUSUM scheme is a landmark initiative that empowers farmers through solar energy. It subsidises the installation of solar pumps and grid-connected solar power plants, enabling farmers to harness renewable energy for irrigation and agricultural purposes. This lowers the dependency on traditional sources of electricity.
2. The Rooftop Solar Scheme
The Rooftop Solar Scheme promotes the adoption of solar energy adoption in residential, commercial, and industrial sectors. Under this scheme, financial assistance is provided to individuals and organisations installing rooftop solar photovoltaic modules. The scheme also incentivises the use of solar capex models, wherein the user bears the upfront cost of solar systems and ensures significant savings in the long run.
3. The Solar Power Purchase Agreement (PPA)
Solar Power Purchase Agreements (PPAs) has recently gained popularity amongst those looking to adopt solar energy without the burden of upfront costs. In this model, a third-party solar provider installs and maintains the solar system while the user pays a pre-determined tariff for the energy consumed.
4. Income Tax Benefits for Solar Installations
The tax benefits attached to solar energy in India is a rewarding proposition for those looking to switch to renewable energy. Businesses adopting solar energy can avail of accelerated depreciation on solar assets, reducing their taxable income.
5. State-Specific Solar Subsidies and Incentives
Maharashtra, like several other states, offers additional solar subsidies and incentives to promote the adoption of renewable energy. By partnering with solar EPC companies, users can ensure they make the most of these state incentives for affordable installations.
6. Net Metering Policies
Net metering policies have also made solar energy more attractive for the users. These policies allow users to feed excess solar power generated by their systems back into the grid and receive credits on their electricity bills.
Adopting solar energy in Mumbai has never been this easier, thanks to the array of incentives and tax benefits offered. Partner with VEMC to make your transition to renewable energy smooth and cost-effective. With over 75 years of experience, we provide end-to-end solar solutions, from consultation to installation and maintenance of solar PV modules. You can reach us at +91 98199 07445, +91 8976951701, 02243436655, or email us at marketing@vemc.co.in for any information or assistance.