eSunScope PMKY 2020 | Kusum Yojana 2020 | Solar Subsidy

Government Programs

  1. Many countries offer solar equipment at a discounted rate. In other words, governments help people adopt renewable energy by supplying the equipment and services for a lower than market price which reduces the financial burden on individuals or businesses that choose to go solar. And the companies that offer equipment at lower prices are compensated by the government.

  2. Net metering system allows residential or commercial users of solar energy to feed the excess power generated by their photovoltaic system into the electricity grid. The solar power generation of the panels varies throughout with the highest power generation in the middle of the day and least in the night. When the power generation is the most, the excess power which is not consumed by the customer will have to be fed back to the electricity grid. That power can be pulled back and used again whenever required or during the low power generation period. Credit system keeps track of amount of power supplied to and pulled back from the grid every month. Some countries like India also offer financial incentives for every unit of power supplied back to the grid. Benefits of net metering system:

  3. Wheeling system - Wheeling system is the power transmission method which can be used to transmit the electricity across the various geographies irrespective of where the power is produced and where the demand is created. The power generation unit and consumption of that power could be at two very different places but by using wheeling systems, governments and sometimes businesses with huge power requirements meet their demands.

  4. Tax Credit system - Many countries now have a tax credit system through which a percentage of tax that applies on the solar equipment installation and maintenance is deductible. Tax credits are implemented to encourage people and businesses to go solar.

  5. Carbon credits - In everyday life, to accomplish things and to run the economy, individuals and businesses consume fossil fuels in one way or the other and release greenhouse gases into the atmosphere. This on the long run leads to climate change causing irregular weather patterns and warming of the planet. Now at the moment, given the rate of growth of economies and the need for energy resources around the world, it is impossible to completely curb the CO2 emissions. Instead, carbon credits help industries do their part in reducing the harmful impact of the greenhouse gases released due to their everyday operations. Carbon credit equals to the amount of CO2 released( tons) into the atmosphere which can be bought from certain organizations who trade in carbon credits and use the resources, especially money in initiatives that reduce the emissions thereby compensating for the damage done. This way, industries get to play their part in combating climate change without having to compromise with the output of their facilities.

  6. Solar certificates - Solar certificates are awarded to any individuals or organizations that are doing their part in the reduction of emissions and compensating for the Carbon they are releasing into the atmosphere. Any organization that is not able to reach their renewable energy can buy Renewable Energy Credits (REC) from organizations who sell it thereby playing their part in the reduction of carbon emissions while also reaching their electricity demands. Your house or facility need not be a solar generating facility to buy RECs and consume that electricity.

  7. Tax exemptions on your property - Governments in some countries exempt individuals and businesses from property tax if they generate a percentage of power from solar energy. The amount of exemption depends on the value of the property and the capacity of the solar panels installed. The more is the installed capacity, the more property value increases and this increased property value will be deductible from tax. Tax abatements on the installation of the solar system are also available in some countries.