Everything You Need to Know About Solar Subsidy in Karnataka

Karnataka has emerged as one of India’s leading states in renewable energy adoption, particularly in solar energy. With a focus on sustainability, the government introduced policies in 2011 to encourage the use of rooftop solar systems and large-scale solar panel installations.

To make solar energy more affordable, both the Central and Karnataka State governments have introduced various solar energy subsidy in Karnataka schemes. These initiatives help reduce dependence on conventional power sources while making clean energy accessible to homeowners, businesses, and farmers. This blog provides a comprehensive guide on solar subsidy in Karnataka, covering benefits, eligibility, and how to apply.

Types of Solar Subsidies in Karnataka

1. State-Level Subsidy Program by BESCOM

The Bangalore Electricity Supply Company (BESCOM) offers solar panel subsidy in Karnataka under the Ministry of New and Renewable Energy (MNRE) guidelines. This scheme mainly benefits residential rooftop solar system installations.

Key Features:

1. Eligibility: Available primarily for residential consumers under BESCOM’s jurisdiction.

2. Subsidy Amount: Up to 40% subsidy for rooftop solar systems up to 3kW and 20% subsidy for systems between 3kW and 10kW.

3. Capacity: The maximum subsidy applies to systems up to 3kW.

2. Central Government Solar Subsidy

The MNRE provides additional solar subsidy in Karnataka, implemented via BESCOM and other state agencies.

Key Features:

1. Eligibility: Open to residential, commercial, and institutional consumers.

2. Subsidy Amount: Varies based on the size of the system and type of consumer.

3. Capacity: Decided based on the consumer’s requirement and the rooftop solar system design.

3. Solar Subsidy for Farmers (PM-KUSUM Yojana)

Farmers in Karnataka can benefit from the PM-KUSUM Yojana, which promotes solar-powered agricultural pumps and decentralized solar panel installations.

Key Features:

1. Eligibility: Farmers and rural households.

2. Subsidy Amount: Up to 60% subsidy for solar pump installations.

3. Capacity: Varies depending on land availability and sanctioned load.

Eligibility Criteria for Solar Subsidy in Karnataka

To apply for a solar energy subsidy in Karnataka, the following eligibility conditions apply:

1. Residential Users: Homeowners can install a grid-connected rooftop solar system that allows excess power to be sent back to the grid.

2. Industrial and Commercial Users: While commercial solar systems are encouraged, subsidies are primarily for residential users. Businesses can explore tax benefits and Renewable Energy Certificates (RECs) instead.

3. Farmers: Can avail subsidies for solar water pumps and decentralized solar setups under PM-KUSUM.

How to Apply for Solar Subsidy in Karnataka?

The application process for solar panel subsidy in Karnataka is simple and straightforward:

1. Choose an Empaneled Vendor

Select a vendor approved by Karnataka Renewable Energy Development Limited (KREDL) to ensure subsidy eligibility.

2. Register for the Subsidy

Your vendor will assist in applying through BESCOM or KREDL by filling out the necessary forms.

3. Submit Required Documents

Prepare the following documents:

1. Identity Proof: Aadhaar card, PAN card, etc.

2. Property Ownership Proof: Lease agreement, rental contract, or ownership documents.

3. Bank Account Details: For subsidy disbursement.

4. System Installation & Inspection

Once installed, BESCOM/KREDL will conduct an inspection to ensure compliance with subsidy norms.

5. Receive Your Subsidy

After approval, the subsidy amount is either credited to your bank account or directly deducted from the installation cost.

Challenges in Availing Solar Subsidy in Karnataka

While the government has simplified the process, some common challenges include:

1. Application Delays: Due to manual verifications and high application volumes.

2. Limited Industrial Benefits: Commercial solar system subsidies are minimal, requiring alternative incentives.

3. Lack of Awareness: Many people, especially in rural areas, remain unaware of subsidy benefits, leading to underutilization of solar energy subsidy in Karnataka.

How Alpex Solar Can Help?

Alpex Solar makes transitioning to solar power in Karnataka easier with:

1. End-to-End Support: From consultation to subsidy application and installation.

2. High-Quality Solar Panels: Durable, efficient, and subsidy-eligible panels.

3. Long-Term Assistance: Maintenance and service agreements to keep your system running smoothly.

FAQs on Solar Subsidy in Karnataka

1. Who is eligible for the solar subsidy in Karnataka?

Residential consumers under BESCOM’s jurisdiction, farmers under PM-KUSUM, and some institutional users are eligible.

2. How much subsidy is provided under BESCOM?

Up to 40% subsidy for rooftop solar systems up to 3kW, and 20% for systems between 3kW and 10kW.

3. Can businesses avail of the solar subsidy?

Currently, commercial solar systems do not get direct subsidies. However, businesses can explore tax benefits and RECs.

4. How long does the subsidy process take?

The process may take a few months due to document verification and inspection delays.

5. Where can I apply for the solar subsidy?

You can apply through BESCOM, KREDL, or an empaneled vendor.