Solar Subsidies: As India drives toward its 500 GW renewable energy target, SIA Engineering is helping homeowners and businesses in Noida & Greater Noida maximize savings through a powerful combination of government subsidies and the new 5% GST rate on solar equipment. Announced on September 3, 2025, this GST cut takes effect September 22, alongside generous MNRE Phase II and Pradhan Mantri Surya Ghar Muft Bijli Yojana subsidies. Together, these incentives can reduce upfront costs by up to 50%—making solar more affordable than ever.
Solar Subsidies and GST Savings in Noida 2025
1. Pradhan Mantri Surya Ghar Muft Bijli Yojana
- Free Electricity: Up to 300 units per month
- Target: 1 crore households by 2026
- Benefit: Direct DBT subsidy reduces actual bills to zero for eligible users
Learn more about Residential Solar Solutions in Noida
2. MNRE Phase II Rooftop Solar Programme
- Subsidy Rates 2025:
- Up to 3 kW: ₹18,000/kW
- 3–10 kW: ₹9,000/kW
- Up to 3 kW: ₹18,000/kW
- Eligibility: Residential consumers with net metering
Combined, these schemes deliver ₹72,000 subsidy on a 5 kW system plus 300 free units monthly. GST Cut on Solar Equipment
From September 22, GST on solar equipment falls from 12% to 5%, saving 7 percentage points on:
- PV panels and modules
- Inverters and mounting structures
- Wiring and BOS components
For a 5 kW system (₹330,000 base cost), this cut results in a savings of ₹23,100.
Explore the complete Solar Installation Cost in Noida 2025 breakdown.
Stacked Savings: Case Study Breakdown for Solar Subsidies
| Item | Base Cost (₹) | Subsidy (₹) | GST Savings (₹) | Net Cost (₹) |
| 5 kW Solar System Equipment & BOS | 330,000 | 72,000 | 23,100 | 234,900 |
| Net Metering & Installation Charges | 20,000 | 5,000 | 1,400 | 13,600 |
| Total Upfront Investment | 350,000 | 77,000 | 24,500 | 248,500 |
Result: From an initial ₹350,000, your outlay drops to ₹248,500—a 29% reduction.
See how businesses benefit with commercial solar installation in Greater Noida
Accelerated ROI & Payback: Solar Subsidies
- Monthly Savings: ₹5,200 (electricity)
- Pre-Incentive Payback: 5 years
- Post-Incentive Payback: 3.5 years
This combined approach delivers ROI 1.5 years faster, translating into ₹93,600 additional free power over 25 years.
Step-by-Step: How to Apply for Solar Subsidies
- Register on the National Rooftop Solar Portal (solarrooftop.gov.in).
- Select Your DISCOM: NPCL for Greater Noida, PVVNL for Noida.
- Choose an MNRE-Empanelled Vendor like SIA Engineering.
- Submit Documents: Aadhaar, electricity bill, bank details.
- Install Solar System and apply for net metering approval.
- Receive Subsidy and enjoy zero GST at 5%.
FAQs: Solar Subsidies
Q1. Can I claim both PM Surya Ghar and MNRE Phase II subsidies?
Yes, residential users can stack both benefits for maximum savings.
Q2. When does the 5% GST rate apply?
From September 22, 2025, on all solar equipment purchases.
Q3. Who can help with subsidy + GST savings in Noida?
SIA Engineering’s solar experts provide end-to-end installation, subsidy filing, and GST-compliant invoicing.
