The Indian government is strongly encouraging the adoption of solar energy by offering various incentives and subsidies for residential installations. Here are some of the key schemes and benefits available:

1. Subsidy on Solar Panels:

   • Residential Solar Systems are eligible for government subsidies under the Ministry of New and Renewable Energy (MNRE) rooftop solar program.
   • For systems up to 3 kW, the government offers a subsidy of 40% of the total cost.
   • For systems between 3 kW and 10 kW, the subsidy is 20% on the total cost.
   • This makes solar installation much more affordable and reduces the payback period significantly.

2. State-Specific Incentives:

   • Several state governments offer additional incentives, rebates, or subsidies. For example, in states like Maharashtra, there are extra benefits on top of the central government’s subsidy. The exact figures and offers can vary, but these incentives make solar power a very attractive option for homeowners.

3. Net Metering Benefits:

   • Through net metering, homeowners can sell the excess electricity generated by their solar system back to the grid and earn credits on their electricity bill. This further reduces the overall cost of power and can even result in no electricity bill at all for some months.

4. Zero or Low-Interest Loans:

   • To help reduce the upfront cost of solar installations, the Indian government has partnered with banks to offer low-interest loans for solar systems. In some cases, loans come with zero-interest financing, which makes it even easier to invest in solar power without significant financial strain.

5. Tax Incentives:

   • The government provides tax benefits under Section 80-IA for those investing in renewable energy, allowing you to deduct certain solar installation expenses from your taxable income, further lowering the overall cost.