Subsidy for Solar Water Heater in India

It is a fact that the Ministry of New and Renewable Energy (MNRE) provides subsidies and incentives to users who use Solar Water Heaters. This particular scheme even comes under Solar Water Heating Systems (SWHS). Now a question arises, what is the subsidy for solar water heater given by the central government’s MNRE?

A question arises of what the subsidy provides by the central government’s MNRE for the solar water heater. We have compiled a list of incentives to update you on new incentives from the central government as well as state government. Have a look!

How much cost to be paid by consumer after deducting Government Subsidy?

Ans: The government through its nodal agencies and channel partners, provide 30% of cost subsidy to consumers in general category states, whereas the management provides 60% subsidy on the special category states like the North-East states, Hilly area states, and islands (but, the 60% subsidy is limited to certain benchmarks. Rs. 3000 per square meter for ETC or Evacuated Tube Collector systems and Rs. 3300 per square meter for FPC or Flat Plate Collector systems).



What other incentives does the Ministry of New and Renewable Energy (MNRE) provide?

Ans: Users can take LOAN (2-5% depending on the user) on your solar water heater system. An interest-free loan is given to domestic users of North-East states, Hilly States, Island states, Chhattisgarh, Jharkhand, and Uttrakhand. Motivators to get REBATE of Rs.200 per 100 LPD solar water heating systems from the bank. Lastly, CAPITAL SUBSIDY is equivalent to an open interest subsidy raised from Rs. 1100 to Rs. 1750 for institutions & from Rs. 825 to Rs. 1400 for commercial establishments using solar water heaters.

How to avail of the subsidy?

Ans: The government passes on the subsidy to partners, which in turn passed on to consumers, and therefore, consumers need to do is to go to the right solar water heater company that has MNRE approval. There are many MNRE approved for solar water heater systems.



Required documents to claim subsidy

  • You need to be submitted required documents in original to the state government agency, duly signed by the customer and agency to claim subsidy-
  • Application for the Installation of Solar Water Heater under the Subsidy Scheme with the details such as:
    • Name of Applicant/Institution/Organization
    • Address
    • Place of installation
    • Type of system installed
    • Date of commissioning of the water heating system
    • Name and address of the MNRE approved manufacturer
  • Certificate from the Manufacturer / Authorized Proprietor / Beneficiary
  • Adhaar Card
  • Bank account details of the applicant or the agency as applicable
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