Government subsidy on Solar System for Businesses


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Is there any subsidy from Gujarat government or Indian government for installing commercial solar systems for small to medium size businesses?

Are you a business owner in Gujarat? You should know that the Gujarat government offers a range of subsidies and tax incentives to small and midsized businesses for switching to solar power.

It’s not just the Gujarat government – even the government of India has gone all out to encourage the adoption of solar energy for both residential and commercial use in the country.

The Central government offers a subsidy of 15% on solar PV systems. This was 30% earlier, but was reduced because of the price of solar PV systems has come down by a lot in recent years. The subsidy can be availed through the Solar Energy Corporation of India. Please visit to know the details on this.

In recent years, the Gujarat government has done everything possible to boost entrepreneurship in the state. A new Solar Policy was announced in 2015 which seeks to decentralize solar power production in Gujarat, by providing an incentive to small and midsized businesses to produce their own solar power.

This policy will be in place till 2020 and offers a range of subsidies and other incentives to investors to set up their own megawatt-scale solar power projects on their premises.

This policy is very much in sync with Gujarat’s Industrial Policy 2015, and Prime Minister Narendra Modi’s ‘Make in India’ campaign. Many small and midsized businesses have got into manufacturing of solar cells, solar modules, and manufacturing of solar panels, lamps, and lanterns not only to take advantage of the excellent incentives provided by the government but also to benefit from the enormous demand for solar power and related products.

However, as this important notice from the government body GEDA makes it clear, the subsidies for solar PV panel installation under the Solar Policy 2015 will be provided to residential homeowners only. This is not available to those who use solar power for commercial purposes such as small and midsized businesses. There are other incentives available though, which SMEs can benefit from.

 The solar energy benefits a small or midsized business in Gujarat will vary in size depending on the type and scale of the company. But generally, a midsized company could save up to Rs. 4 lakh/year on their electricity bills by installing a commercial solar system.

Contact us to know more about the provisions for small and midsized businesses in Gujarat that install solar power. We are also happy to provide you with the names of 3 top commercial solar power installers for your business.