Why do we need to switch to solar? The growing need for a sustainable environment has forced people to switch to solar for the betterment of society as well as for individuals.
With the use of solar panels, one can reduce the pollution caused to the environment and in the coming years the cost which they spend now on electricity will be reduced marginally. But still, why are individuals restricting themselves to switch to solar? Because of the one time cost which they will have to bear for installation and lack of knowledge of solar.
Thus to tackle this problem of cost, the government is providing subsidies so that it can be a help to the ones who are not installing solar due to the cost involved in it. The total installed capacity of solar rooftop is 326.679MW till 31 March 2019.
Gujarat is the sixth largest installed solar power generation capacity in the country. Subsidies are not only provided to help people with the aspect of money but also to spread awareness about the need for solar and to motivate people to install solar.
In our house, at our workplace and even at public places all the appliances used are working with the help of conventional sources which is harming our environment.
Don’t you think that it would be wonderful to have your own source of generating electricity? The idea of generating electricity is as interesting as it sounds.
You don’t need to worry about the technicalities, what you need is the sun is (the most important resource) – which is available for free, and just some instruments according to your requirements for solar rooftop, solar pump, solar light, solar water heater.
Subsidies on solar installation
I-SMART programme was launched by the state government to the 2 lakh families who are installing solar in the financial year 2019-20. This scheme is only for residential customers.
Citizens of Surat are eligible for getting a subsidy on solar rooftop of 40% which will be applicable to the one who installs systems of upto 3 kilowatts (kW) and 20% subsidy for the system of 3kW-10kW.
Residential societies, educational, social and medical institutions are liable to get 30% subsidies on the rooftop installation of solar. 90% of subsidies are provided on the installation of solar pumps only to the farmers.
Central government is already providing subsidies of 30% of the cost, but the people of Surat (Gujarat) can get subsidy of Rs 10,000 per kW capacity of rooftops being installed. Thus, now the customers will only have to pay Rs 23,600 on installation which used to cost Rs48,300 previously without subsidy.
Who can get subsidies on solar?
Residential/Domestic – all the residential homeowners are eligible to avail the government subsidies.
Social sector – Cooperative groups, registered societies, apartments can get the benefit of subsidies on solar systems.
Institutions – Schools, colleges, and institutes can avail the subsidies provided by the government.
Non-profit organizations – all non-profit organizations such as orphanages, old age homes, NGOs can avail the benefit of subsidies on solar installation.
Do we get tax benefits on solar installation?
Yes, we do get tax benefits on solar installation. The commercial and industrial sectors can avail benefits on solar installation. These sectors receive tax benefits termed as accelerated depreciation.
In straight-line depreciation (traditional method), the value of depreciation remains the same but whereas in accelerated depreciation the value has decreased over the years.
The commercial and industrial sectors can get tax benefits using this method via installing solar. The current rate is 40% which can be claimed in one year. The solar panels can be treated as an asset and the value can be depreciated over time.
Even though the lifespan of the system in 20-25 years, the installer can get tax reliefs. You can get tax benefits just by installing solar rooftop. One can save lakhs in taxes by installing Solar PV System.
Surat Solar City
Surat has bagged the title of generating maximum renewable energy in the country. Surat commenced with the production of renewable energy by installing a 100-kilowatt solar panel in the science center.
Surat is aiming to become the first solar city. In total 4,000 solar panels have been installed of different capacities. For encouraging the use of solar government has increased the subsidy from September.
Previously the panels used to cost Rs69,000 but now one can purchase for Rs48,300 and Rs23,600 after getting subsidy only for Gujarat residents.
The prices of conventional energy have increased by 3%-5% whereas the prices solar panels have reduced. Installation of rooftop will reduce the costs by almost 50%.
A survey was conducted which resulted that Surat has good potential to generate solar energy. Rooftop houses have a capacity to generate 179MW, the commercial sector can generate for about 210MW, educational institutes and health centers 23MW.
Have you installed solar panel?
If no, then what are you waiting for. The government has provided all the help it could. The maximum benefits are provided to you and you just have take one step forward for solar installation.
Installing solar panels will not only be beneficial for you (reductions in cost spent on conventional energy) but also for the environment( reduce the carbon footprints from the environment leading to clean emission of energy).
Installation of solar is beneficial for all sectors be it residential, commercial, institutions or industries. So don’t wait anymore you have all the reasons to GO SOLAR!