Commercial Solar Power Plan Subsidy in India: Everything You Need to Know [2025 Guide]

Why Subsidies Matter for Commercial Solar Projects

Solar energy has emerged as a powerful and sustainable solution for businesses facing rising electricity costs and carbon footprint concerns. But setting up a commercial solar plant is no small investment. That’s where commercial solar power plan subsidy come in—making solar more accessible, affordable, and attractive.

Government commercial solar power plan subsidy in India

1. Grid-Connected Rooftop Solar Scheme (Phase II)

This central government initiative supports both residential and commercial rooftop solar installations.

• Who qualifies? Businesses, institutions, industries

• Type of systems covered: Grid-connected

• Financial Support: Subsidies based on system size and state DISCOM policies

• How to apply: Through the National Portal for Rooftop Solar

2. State-Level commercial solar power plan subsidy

Some states, like Haryana, Gujarat, and Maharashtra, offer additional subsidies over and above the central scheme.

Example (Haryana DISCOMs):

• Commercial solar for common facilities in group housing: Up to 500 kWp per household

• Conditions: Must use approved solar panel contractors and domestically manufactured equipment

3. PM-KUSUM Scheme (Component A)

Though primarily designed for farmers, this scheme supports decentralized ground-mounted grid-connected solar plants on barren or fallow land.

• Capacity: 500 kW to 2 MW

• Target group: Farmers, FPOs, cooperatives, and commercial developers

• CFA: Up to ₹1.05 Cr/MW (30% of the project cost)

• Use Case: Agro-industrial applications, food processing units, etc.

Key Requirements for Availing commercial solar power plan subsidy

• Must install a grid-connected solar plant

• Components like panels and inverters must be Made in India

• Project must be executed by an empaneled vendor

• Site inspection and documentation must comply with DISCOM guidelines

Benefits of commercial solar power plan subsidy

• Lower Capital Costs: Cut upfront costs by up to 30–40%

• Faster ROI: Achieve break-even in 3–5 years

• Green Branding: Improve CSR credentials and brand value

• Energy Security: Shield your business from rising grid tariffs

Typical System Sizes and Costs

Interlinked Resources

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FAQs

Q1. Is there a fixed subsidy percentage for commercial systems? Unlike residential schemes with fixed slabs, commercial subsidy rates often vary based on system size and DISCOM policies.

Q2. Can I install an off-grid commercial plant and still get subsidies? Most government subsidies are only applicable to grid-connected systems. Generally, the government does not subsidize off-grid systems unless they are a part of a special rural electrification program.

Q3. What happens if my vendor lacks the necessary accreditation? Subsidy cannot be claimed unless your vendor is listed on the national portal or registered with your local DISCOM.

Q4. Is a subsidy available for solar battery backup? Generally, no. Subsidy applies mainly to solar PV modules and grid-tied components. Typically, we exclude battery systems.

Final Thoughts

If you're planning to install a commercial solar power plant in 2025, now is the time to take advantage of government subsidies that can dramatically lower your costs.

With multiple schemes, simplified processes, and greater incentives for large-capacity projects, the Indian government is making it easier than ever for businesses to go green.

✅ Choose an empaneled installer
✅ Pick a grid-tied system
✅ Apply through the National Portal
✅ Slash your costs and increase your profits

Let the sun power your profits, sustainability, and future growth.