solar tax rebate

How Does Solar Tax Rebates Work

Table of Contents

These days solar energy is growing in popularity among people and businesses. There has been a significant effort made by the government in favour of renewable energy sources, such as solar energy. Moreover, solar energy can also lower electricity costs and improve environmental sustainability. But are you aware of the benefits of using solar energy? You are correct, we are discussing solar tax rebates. 

Let’s look in detail, what are solar tax rebates, and how do they work? 

Solar Tax Rebates

Solar tax rebates are the incentives offered by Governments to promote installations of solar energy in homes and businesses. These incentives are offered in the form of solar tax refunds, solar incentives, and solar tax credits. The main goal of these incentives is to cut down the cost of solar energy for homes and businesses. 

How do Solar Tax Rebates Work?

How do Solar Tax Rebates Work?

The Indian government promotes the use of solar energy by providing several grants and incentives. The Indian government offers solar tax rebates under different programs and laws, such as the Income Tax Act, state-specific solar laws, and the Solar Energy Corporation of India (SECI) schemes. It is a brief explanation of how solar tax  work.

  • Eligibility Criteria

To be eligible for solar tax , people or businesses need to fulfil the government’s specified standards. These requirements may vary based on the particular plan or program that the refund is granted under. Factors including things like the size and kind of installed solar power system, respect for technical specifications, and registration with the appropriate authorities are usually taken into consideration when determining eligibility.

  • Setting up solar power system

Tax rebates are offered for installing solar power systems, like solar power plants, rooftop solar panels, and solar water heaters. The rules and specifications established by the authorities must be adhered to by the installed systems.

  • Rebate Claims

The taxpayer can file their income tax returns and collect the tax rebates after the solar power system is operational. For the process, it is usually necessary to provide documentation of the investment in solar energy infrastructure as well as other additional information.

  • Amount of Rebate

The capacity of the solar power system, the current policies of the government, and the applicable tax regulations all influence the tax rebate amount. Rebates may be offered as a percentage of the total investment or as a fixed sum. 

  • Government Schemes and Policies

 In India, government schemes that often provide solar tax incentives include the Jawaharlal Nehru National Solar Mission (JNNSM), the Solar Energy Corporation of India (SECI), and state-specific solar policies. These programs describe the eligibility requirements, incentive structure, and return application process. 

Get Solutions From Mentor Water Experts

Contact us today and book a no-cost consultation with our experts.

  • Duration and Expiration

Rebates on solar taxes are offered for a set amount of time as part of government programmes to promote the use of solar energy. To get the most out of the benefits, taxpayers need to be aware of the expiration dates and file their rebate claims within the period. 

Benefits of Solar Tax Rebates

Benefits of Solar Tax Rebates

The solar tax rebates benefit people, businesses and the environment in several ways.

  • Upfront Costs: Tax rebates help reduce the upfront cost of solar power systems, making them more affordable for homes and businesses. This helps homes and businesses to save on electricity bills and operating costs.
  • Environmental Impact: When compared to other energy sources, solar energy is clean, renewable, and has a lower environmental impact. Therefore, tax rebates on the use of solar energy contribute to reducing greenhouse gas emissions, slowing climate change, and protecting natural resources for generations to come. 
  • Energy Independence: Using solar energy can reduce the dependency on fossil fuels like coal, oil, and natural gas. As a result, the energy supply is more stable and dependable. People can raise their level of energy independence by producing their electricity with the help of solar tax.
  • Employment and Economic Growth:  Tax rebates have boosted the growth of the solar energy sector, leading to job opportunities from installation and manufacture to maintenance and research. It also boosts innovation in renewable energy technology and increases economic activity.


Solar tax rebates are a major factor in encouraging the widespread use of solar energy. To speed up the shift to clean and renewable energy sources, the government offers financial incentives to both people and businesses. Investigating solar tax could be a helpful step towards a greener tomorrow, whether you’re a business trying to minimize your carbon footprint or a homeowner hoping to save your energy costs.

Therefore, solar tax refunds in India function by offering monetary rewards to people and companies who make solar energy system investments. In addition to enjoying lower upfront expenses and long-term benefits, recipients can support environmental conservation efforts by fulfilling qualifying requirements and adhering to the required procedures. So, if you’re thinking about switching to solar power, don’t forget to look into the possible tax advantages that could apply to you.

Contact Mentor Group at 7351002123 for any further guidance related to the Installation of Solar Power Systems at your home. Our team will assist you in the installation process of solar equipment. 

Get Solutions With Mentor Group

Fill in the form to get the company profile directly on your WhatsApp.
Subscribe to our newsletter to get regular updates
about our services