India is the third largest energy-consuming country in the world, but growing environmental concerns have pushed economies across the world to shift towards renewable energy sources.
Recognizing the significance of renewable energy in combating climate change, governments worldwide, including India, have introduced a range of subsidies and incentives to boost businesses operating in this sector.
In the last eight years, India's installed non-fossil fuel capacity has increased 396% and has achieved the highest year-on-year growth in renewable energy, additions of 9.83% in 2022.
Currently, India has 4th largest installed capacity of solar and wind power in the world.
Leveraging Government Subsidies
The Government has committed to reducing carbon emissions by 1 billion tonnes by 2030, carbon intensity by less than 45% by the end of the decade, and achieving net zero carbon emissions by 2070.
To achieve these targets, the Government is offering various financial incentives to empower businesses to make eco-conscious decisions.
These incentives include capital subsidy, interest subsidy, exemptions in stamp duty, land tax, and employment generation subsidy, encouraging companies to adopt clean energy solutions.
To boost the sectoral growth, the Government has laid down an outlay of INR 24,000 crore for Solar PV manufacturing under the Production Linked Incentive scheme.
100% exemption has been provided for electricity duty, land tax, and stamp duty for seven years by the Rajasthan Government. It also provides an investment subsidy of 75% of State Goods and Services Tax (SGST) due and deposited for seven years under the Rajasthan Investment Promotion Scheme.
Till July 2023, Renewable energy sources, including large hydropower, have a combined installed capacity of 179.322 GW in the country. Indian Government has also launched the National Green Hydrogen Mission with an outlay of INR 19,744 Cr, which targets 5 MMT annual green hydrogen/ ammonia production by 2030.
Manufacturers would be given grid connectivity on a priority basis to avoid any procedural delays. The Government is also giving a push for solar cities, parks, and floating PV projects.
The Kerala government is providing a 15% fixed capital rebate in the general category up to 20 lakhs and 20% assistance to Women and SC/ST entrepreneurs up to 30 lakhs.
Uttar Pradesh Government offers to purchase 100% of power generated from solar parks. 100% FDI is allowed under the automatic route for renewable energy generation and distribution projects subject to provisions of The Electricity Act 2003.
Embracing renewable energy is not just helpful in monetary gains, but it also enhances a company's reputation and corporate social responsibility.
By incorporating greener solutions, companies can show their commitment to sustainability, attracting environment-conscious customers and thus enhancing their profitability.
Moreover, it will reduce their dependence on fossil fuels, whose prices fluctuate, minimizing their energy-related expenses. To capitalize on the benefits provided by the Government in the renewable energy sector, companies need to be aware of the application procedure and eligibility criteria.
Experts can guide the companies to avail maximum benefit of these subsidies and to enhance the financial viability of their projects.
SubsidyPro is the most knowledgeable and trusted partner in navigating the complex world of government subsidies in India. It guides and assists entrepreneurs through the maze of subsidy programs offered by various governments. Subsidy Pro specializes in identifying eligible subsidies, preparing requisite documentation, and ensuring compliance. The company helps unlock the potential of subsidies by providing customized solutions as per client's needs and objectives to make their financial planning more viable.
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