Introduction Government subsidies and incentives play a huge role in making solar energy affordable. In 2025, both the USA and India are offering attractive financial support for homeowners and businesses that want to install solar panels. In this guide, we’ll break down all the available solar panel government subsidies in USA and India, how to apply for them, and what kind of savings you can expect.
USA: Federal and State Solar Subsidies (2025)
1. Federal Solar Investment Tax Credit (ITC)
- Value: 30% of the total system cost
- Applies to: Residential and commercial solar installations
- Eligibility: Must own the system (not lease or PPA)
- How to Claim: File IRS Form 5695 with your federal tax return
2. State-Level Incentives Each state offers different programs. Some top examples in 2025:
- California:
- Self-Generation Incentive Program (SGIP): Rebates for battery storage systems
- Net Energy Metering (NEM 3.0): Earn credits for extra electricity sent to the grid
- New York:
- NY-Sun Initiative: Rebates based on system size and location
- Property Tax Exemption: Avoid property tax increases from solar
- Texas:
- Utility Rebates: Offered by local electricity providers (e.g., Austin Energy)
- No state income tax: Makes the federal ITC more valuable
3. Local Utility Rebates and Incentives
- Many utilities provide per-watt rebates
- Some offer performance-based incentives (PBI) over several years
India: National and State Solar Subsidies (2025)
1. Central Financial Assistance (CFA)
- Offered by: Ministry of New and Renewable Energy (MNRE)
- Value: Up to 40% subsidy for residential rooftop solar under PM Surya Ghar Yojana
- Eligibility: Residential sector only, up to 3 kW systems get full subsidy
- How to Apply: Through the official MNRE or DISCOM portal
2. State-Level Subsidies (Examples):
- Delhi:
- Additional state subsidy up to ₹10,000/kW
- Net metering enabled with attractive feed-in tariffs
- Gujarat:
- State subsidy of ₹10,000–₹20,000 depending on kW size
- Rooftop solar registration via Gujarat Energy Development Agency (GEDA)
- Maharashtra:
- Rebates and capital subsidies under MSEDCL’s rooftop solar program
3. Net Metering and Tax Benefits
- Net metering available in most states
- GST on solar equipment reduced (5%)
- Some states offer property tax rebates
Comparison Table: USA vs. India Solar Subsidies (2025)
| Feature | USA | India |
|---|---|---|
| Federal Subsidy | 30% ITC | Up to 40% CFA (Residential) |
| State Programs | Yes (varies by state) | Yes (varies by state) |
| Net Metering | Available in most states | Available in most states |
| Application | Through IRS & state portals | MNRE/DISCOM portals |
| Battery Incentives | Yes (e.g., SGIP) | Limited (state-specific) |
How to Maximize Your Benefits
- Act Early: Many programs have limited budgets.
- Hire Certified Installers: Some subsidies require installation by approved vendors.
- Keep Documentation: Maintain receipts, permits, and system specs.
- Use Government Portals: Always apply through official channels.
Conclusion Whether you’re in the USA or India, 2025 is a golden year for going solar. With substantial government subsidies, tax benefits, and local incentives, homeowners and businesses can cut installation costs by up to 40% or more. Do your research, file your applications on time, and enjoy clean, cost-effective energy for years to come.