Business

🌞 Solar Incentives: A Local and Global Comparison

As the world races toward cleaner energy, solar power has emerged as a front-runner in the renewable revolution. But going solar is more than just a green decision — it’s also a smart financial one, thanks to a variety of solar incentives provided by governments across the globe. In this blog, we’ll explore how solar energy incentives work, comp

Play Video

🌍 Why Solar Incentives Matter

Solar energy systems require high upfront investment. Incentives — in the form of tax credits, rebates, subsidies, and feed-in tariffs — help reduce the payback period and make solar energy accessible to more people.

Contact Us Support Center

Incentives usually fall into these categories:

• Capital subsidies or grants
• Tax rebates or credits
• Net metering policies
• Performance-based incentives (PBIs)
• Feed-in tariffs (FiTs)

🇮🇳 Solar Incentives in India (Local Overview)

India has made massive strides in promoting solar adoption, with a goal to reach 280 GW of solar capacity by 2030. Some popular incentives include

✅ Subsidies for Rooftop Solar

Residential users can receive up to a 40% subsidy under the PM Surya Ghar Muft Bijli Yojana (2024 onwards).

State-specific schemes (e.g., Gujarat, Delhi, Kerala) offer additional subsidies and installation support.

✅ Net Metering

Consumers can export excess solar electricity to the grid and receive energy credits, reducing monthly bills.

✅ Accelerated Depreciation for Businesses

Businesses can claim up to 40% depreciation on solar investments in the first year.

✅ GST Benefits

Solar components are taxed at a lower 5% GST, compared to the standard 18–28% for other goods.

🌎 Global Solar Incentive Comparison

Let’s take a look at how some of the world’s leading solar adopters are incentivizing clean energy:

🇺🇸 United States

• Federal Solar Investment Tax Credit (ITC)—Offers a 30% tax credit on residential and commercial installations through 2032.
• State-level rebates and net metering vary; California, New York, and Texas lead in adoption.
• Some states provide property tax exemptions as well as solar renewable energy credits (SRECs).

🇩🇪 Germany

• Historically, it has been known for its generous feed-in tariffs (FiTs).
• Now, it offers low-interest loans and solar grants under the KfW development bank.
• Grid feed-in earnings continue under the Renewable Energy Act (EEG).

🇦🇺 Australia

• National Small-scale Renewable Energy Scheme (SRES): Generates Small-scale Technology Certificates (STCs) tradable for discounts.
• State-specific rebates, such as Victoria's Solar Homes Program.
• Most states have strong net metering policies and low-interest loan options.