Industrial Solar Subsidy: Compare, Benefits, Apply 2025

Did you know your factory could save ₹90 lakh/year — and pay zero upfront for solar?

Solar energy adoption in India is picking up serious momentum — and not just among homeowners. Industrial and commercial units are now making the shift to solar, and for good reason. With rising grid electricity prices, stricter sustainability norms, and government-backed support schemes, switching to solar is one of the smartest decisions a business can make in 2025.

But here’s the catch — many businesses don’t fully capitalize on the industrial and Commercial solar power plant subsidies and tax benefits available to them.

In this guide, we’ll break down how B2B business in Haryana can maximize their returns through rooftop integrated photovoltaic (RIPV) systems. You’ll learn how to choose between financing models, leverage government solar panel schemes like MNRE and KUSUM, and legally reduce your tax liability through solar subsidy.

Why Solar Makes Business Sense in 2025

Industrial facilities run on power — and lots of it. Shifting from grid-based energy to solar can save ₹80- 90 lakh annually on electricity for a 1MW Commercial solar system in Haryana. But beyond the cost savings, solar systems offer:                      

  • Energy independence: Less reliance on erratic grid supply or diesel gensets.
  • Sustainability branding: Boosts ESG performance for listed entities (now mandatory under SEBI norms).
  • Tax advantages: Under Income‑Tax Act Section 32, PV solar projects can claim 40 % accelerated depreciation in Year 1 and an additional 20 % in Year 2 (if the asset is in use for > 180 days), plus full GST input‑tax credit on plant & machinery as per the Gujarat AAR (ITC not blocked under Section 17(5)(d)).
  • Scalability: Systems can grow with your business needs.

Many business owners search for solar subsidy in Haryana, but few understand how to truly leverage the complete financial ecosystem around industrial solar systems.

CAPEX vs OPEX Solar Model Benefits in Haryana

One of the first decisions to make in your solar journey is the financing structure

industrial-solar-subsidy

CAPEX (Capital Expenditure) Model

You pay the full cost of the system upfront and own the asset. This model is best suited for:

  • Businesses with strong liquidity
  • Units looking to claim depreciation and tax benefits
  • Long-term planners who want maximum returns on investment

Under the CAPEX model, you can:

  • Claim 40% accelerated depreciation in Year 1 and a further 20% in Year 2.            
  • Avail input GST credit on equipment & services
  • Control maintenance (or outsource it)
  • Get better returns within 3–4 years.
solar-subsidy-in-haryana

OPEX (Operating Expenditure) Model

Also known as the PPA (Power Purchase Agreement) model, this structure involves zero upfront cost. A third-party investor installs and operates the system, and you pay for the electricity you consume at a pre-agreed tariff — Approximately 15–20% below DISCOM rates.

This model suits:

  • Businesses that want to go solar with zero CapEx
  • Entities that don’t want to manage or maintain solar assets
  • Companies with shorter lease durations or cash flow constraints

In this model, the third-party claims the industrial solar subsidy, but your business still enjoys reduced electricity bills with zero risk.

Curious if you qualify for a solar PPA? Talk to our solar advisor.

Key Incentives & Subsidies for Solar in Haryana

Let’s get to the core — what financial support is actually available for industrial solar projects?

MNRE Subsidies

The Ministry of New and Renewable Energy (MNRE) offers Central Financial Assistance (CFA) for solar installations. While industrial rooftop systems don’t directly get upfront subsidies, benefits come in the form of:

  • Accelerated depreciation
  • Customs duty exemption on specific solar components
  • Income tax benefits

In 2025, MNRE is focusing more on larger-scale adoption, and policies may evolve to include production-linked incentives (PLIs) or green credits for industrial solar power users.

PM KUSUM Yojana (Component A) Haryana

If your business is in the agro-processing, agro-industrial or rural-based manufacturing sector, KUSUM Component A can help you install grid-connected solar plants with the option to sell excess energy back to the grid.

Highlights:

  • Can install up to 2 MW solar system per entity
  • Feed excess power to DISCOMs at fixed rates
  • 30% subsidy component under certain conditions

Get more knowledge about the PM Kusum Yojana

(HAREDA) Haryana-specific Solar Subsidy for Business

Through HAREDA (Haryana Renewable Energy Development Agency), the state provides:

  • Net metering approvals for industrial consumers
  • Solar power banking facilities
  • Stamp duty exemptions for solar land leases in some cases

Your eligibility for these benefits depends on your load category, project size, and connection voltage level.

How to claim industrial solar subsidy in Haryana

Here’s how B2B solar adoption works in the real world

✅ Step 1: Site Survey & Feasibility

A solar EPC provider inspects your rooftop or land area, analyses load data, and proposes the optimal system size.

✅ Step 2: Choose Financial Model (CAPEX vs. OPEX)

Decide whether to buy the system or get it installed through a PPA. This will affect who claims the industrial solar subsidy and other financial incentives.

✅ Step 3: Apply Under MNRE/KUSUM/HAREDA

Based on your business type, project size, and location, your solar provider will register the project under the relevant scheme:

  • MNRE portal (for central policies)
  • HAREDA portal (for state approvals)
  • DISCOM for net metering

✅ Step 4: Project Installation & Commissioning

After paperwork and approvals, installation begins. Most projects take 30–60 days to complete based on size and site conditions.

✅ Step 5: Claim Financial Benefits

  • If under CAPEX, your CA can file for accelerated depreciation under Section 32 of the Income Tax Act.
  • Net metering credits begin reflecting in your electricity bills.
  • You can also claim input GST credit on the project, further lowering your tax liability.

Example: ROI Breakdown for a 500 kW Solar RIPV System

Here’s an example to show the math

  • Project Size: 500 kW
  • CAPEX Cost: ₹2.5 crore (approx.)
  • Annual Savings: ₹45–50 lakh on electricity
  • Payback Period: 3.5 years
  • Tax Savings: Up to ₹35–40 lakh over 2 years through depreciation
  • Net ROI (5 years): ₹1.25 crore+

This doesn’t include carbon credits or sustainability-linked financial incentives, which are increasingly becoming relevant for export-based industries. Want to know how to calculate ROI of your solar commercial buildings and lands

Green Branding & ESG Advantage

Beyond cost and subsidies, solar adds significant brand equity to your business

  • Helps meet ESG targets (now mandatory for many listed entities)
  • Attracts green financing options from banks and NBFCs
  • Supports corporate CSR and environmental goals
  • Improves vendor/supplier eligibility for eco-conscious contracts

    In a world where buyers care about your carbon footprint, solar is no longer a “good to have” — it’s a competitive edge.

Final Thoughts: Don’t Leave Money on the Table

If your business is considering solar energy, this is the best time to act.

Government schemes may evolve or be reduced over time. But in 2025, the incentives, depreciation benefits, and solar subsidy in Haryana offer B2B players a unique chance to turn energy into an asset.

Whether you choose the CAPEX or OPEX Solar Model, the key is to align your solar adoption with a clear understanding of:

  • How to claim benefits
  • Who is eligible for what
  • And how does it fit your long-term strategy

Incentives won’t last forever, but your savings will. Start your solar journey today.

About the Author

Jatin Singh is a content developer at Sun Photonics Pvt. Ltd., specializing in creating impactful content for solar energy solutions. With a background in tech and health, he has previously worked in digital marketing and pharma. Passionate about sustainability, and currently exploring all things about solar!

Approval by an Expert: 
“This content is reviewed and approved by Dr. Sujata Bhaker, who holds a Doctorate in Renewable Energy and brings over 10 years of industry expertise.”

Frequently Asked Questions (FAQ)

Subsidy depends on the scheme. For industries, benefits include accelerated depreciation, GST credit, and up to 30% subsidy under specific programs like PM KUSUM.

Yes. While direct subsidies are limited, tax benefits, net metering, and custom duty exemptions apply to commercial solar projects.

The PM Surya Ghar Yojana is for residential households, not for commercial or industrial users.

Yes. Businesses can save up to ₹90 lakh/year, recover investment in 3–4 years, and enjoy long-term savings with or without a subsidy.

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