Government Solar Incentives & Tax Credits in 2025: How to Save More
Introduction: A Brighter Future Begins at Home
In a city that never sleeps and rarely slows down—yes, we’re talking about Mumbai—every rooftop is a golden opportunity. Quite literally! With the sun pouring down generously over this bustling metropolis almost all year round, it’s high time we looked up—at the sun and our rooftops.
As conversations around climate change, sustainable living, and energy savings become louder, solar energy stands tall as a practical solution. But here’s the cherry on top—government solar incentives and tax credits in 2025 are making it even easier for homeowners, businesses, and housing societies to go solar.
If you’ve been considering installing solar panels but the cost gave you pause, 2025 might be the year you flip the switch. And when you do, make sure you’re working with a trusted solar panel installation company in Mumbai—like Visol India—that knows how to navigate everything from engineering to government paperwork.
Let’s break this down and help you understand how much you can save—and why now is the right time.
Solar Power: The Innovation for Energy Consumption
Solar power isn’t just a trend anymore. It’s a lifestyle upgrade. It’s an investment in both the planet and your bank account. And in a country like India, where sunlight is abundant, it almost feels like a missed opportunity if you’re not tapping into it.
Here’s why solar power is making waves:
- Cost Savings: Once installed, solar panels drastically reduce monthly electricity bills. The ROI is impressive for commercial buildings and residential complexes.
- Low Maintenance: Solar systems require minimal upkeep and can last 25+ years. That’s decades of savings!
- Clean Energy: No emissions, no noise, and no guilt. Just pure, renewable power.
- Energy Independence: You’re less reliant on the grid and rising electricity prices.
- Boost in Property Value: Homes with solar installations often enjoy higher resale values.
With these benefits in mind, it’s no surprise that many homeowners and housing societies in Mumbai are increasingly consulting expert installers like Visol India, a name trusted for solar panel installation across the city.
But let’s be honest—the initial setup cost still scares many off. That’s where government support comes in to brighten things up.
Government Solar Incentives: What’s on Offer in 2025?
The Government of India, through its Ministry of New and Renewable Energy (MNRE), has been actively pushing for faster solar adoption. 2025 is no different, and in fact, the benefits are even better now.
Here’s what’s on the table:
1. Capital Subsidy for Residential Installations
Suppose you’re a homeowner planning to install solar panels for personal use (especially rooftop grid-connected systems). In that case, the MNRE offers up to 40% subsidy for systems up to 3 kW and 20% for 3-10 kW capacity.
These subsidies are disbursed through DISCOMs and vary slightly based on state policies. In Maharashtra, MSEDCL has been actively working in alignment with MNRE to ensure smoother subsidy applications.
2. Zero GST on Solar Equipment (for some components)
The GST on solar components like panels and inverters has been streamlined over the years. While not entirely tax-free, the reduced GST rates (around 5%) significantly reduce the cost of procurement and installation.
3. Solar for Housing Societies – Group Net Metering
The government encourages group installations under net metering arrangements for large housing societies in Mumbai. These arrangements allow energy credits to be shared across the society, maximising the return.
4. Loans at Concessional Rates
Banks have been instructed to treat solar loans under priority sector lending. This means lower interest rates, flexible repayment options, and quicker approvals—making solar panels more accessible to all economic segments.
These incentives ensure that switching to solar doesn’t burn a hole in your pocket—in fact, it plugs many financial leaks.
Solar Tax Credits in 2025: What You Should Know
Beyond upfront subsidies, 2025 also brings exciting opportunities in tax savings for individuals and businesses investing in solar.
1. Accelerated Depreciation for Businesses
If you’re a business owner in Mumbai installing solar panels on your office, warehouse, or factory, you can claim 40% depreciation in the first year itself (reduced from the earlier 80%). This dramatically brings down your taxable income and improves your ROI.
2. Section 80-IBA & 80-IA Benefits for Developers
Real estate developers offering green/affordable housing projects with integrated solar systems can avail of tax benefits under Sections 80-IBA and 80-IA of the Income Tax Act. This is a great incentive to integrate solar as a feature in upcoming residential towers.
3. GST Input Credit for Commercial Solar Installations
Commercial installations can claim GST input tax credits, helping businesses recover part of the installation cost through regular GST filings.
While residential users do not receive a direct income tax rebate, the combination of subsidy and monthly electricity savings is far more attractive in the long run.
How to Save More with Solar: Real Tips That Work
Whether you’re a homeowner, builder, or society secretary, here’s how to maximise your savings in 2025:
Choose the Right System Size
Bigger isn’t always better. Oversizing your system means unnecessary costs. A solar panel installation company in Mumbai, like Visol India, will assess your rooftop space, average electricity consumption, and future usage before designing the perfect solution.
Opt for Net Metering
With net metering, the surplus electricity your system generates is fed back into the grid. You earn credits and offset your electricity bill. It’s like having your electricity meter run backward—how cool is that?
Take Advantage of Group Installations
If you live in a condominium or apartment complex, consider a group solar installation. It offers better pricing, higher chances of approval, and easier maintenance.
Stay Updated with State Policies
Each state has slight variations in how subsidies are rolled out or how net metering is implemented. Working with a local expert like Visol India ensures you get accurate guidance without decoding government jargon.
Don’t Skimp on Quality
A cheaper system today may require more maintenance and be less efficient later. Stick to BIS-certified panels, branded inverters, and a professional installer with a warranty.
Visol India – The Power of Solar, Delivered Right
Based in Mumbai, Visol India isn’t just a solar panel installer—it’s a team of engineers, consultants, and customer support professionals who live and breathe solar.
Here’s why thousands across Mumbai trust Visol India:
Customised Design:
Not every roof is the same. Visol offers custom solar solutions suited to your exact needs.
End-to-End Service:
Everything is handled for you, from site assessment to government paperwork, subsidy applications to net metering setups.
High-Quality Components:
Only top-tier solar panels and inverters are used, ensuring efficiency and durability.
Post-Installation Support:
Solar is a long-term investment, and Visol ensures your system performs at its best for decades.
Whether you own a bungalow in Andheri, manage a housing society in Borivali, or run a business in Navi Mumbai, Visol India has the expertise, team, and tools to help you harness the sun and save big.
Conclusion: 2025 Is the Year to Go Solar – Don’t Miss the Bus
Government subsidies. Tax credits. Low-cost loans. And non-stop sunshine. 2025 has lined up all the stars for you to go solar—and the sooner you act, the more you’ll save.
As electricity tariffs continue to rise and sustainability becomes a social responsibility, investing in solar is no longer a “maybe.” It’s a wise, future-proof decision.
When you’re ready to make that switch, let Visol India be your guide. A trusted solar panel installation company in Mumbai, Visol doesn’t just install panels—it powers dreams, reduces bills, and helps Mumbai shine a little greener, one rooftop at a time.