Solar Power Subsidies in Andhra Pradesh

Unlike some other states, Andhra Pradesh does not offer a state-specific solar subsidy. However, residential consumers can still benefit from the Central Government’s solar subsidy scheme available through the National Portal for Rooftop Solar. Below are the subsidy rates applicable:

• 1 kW to 2 kW: ₹30,000 per kW
• 3 kW: ₹30,000 per kW for the first 2 kW + ₹18,000 for the 3rd kW
• Above 3 kW: Fixed subsidy of ₹78,000 for up to 10 kW capacity

These incentives make solar power more accessible to homeowners, helping them reduce energy costs, achieve energy independence, and contribute to environmental sustainability.

How to Apply for a Solar Subsidy in Andhra Pradesh?

To avail of the rooftop solar subsidy, follow these steps:

• Check Eligibility: Ensure your property qualifies under the subsidy scheme.
• Select a Vendor: Choose an MNRE-approved solar installer.
• Site Inspection: The vendor will conduct a feasibility check.
• Document Submission: Provide ID proof, property ownership documents, and electricity bills.
• Online Application: Register on the National Portal for Rooftop Solar (solarrooftop.gov.in).
• Installation & Inspection: After approval, the vendor installs the solar system, followed by inspection.
• Subsidy Disbursement: The subsidy is credited to your bank account post-installation and verification.

Andhra Pradesh Solar Energy Policy & Future Goals

The Andhra Pradesh Solar Policy (2018) was launched with the aim of accelerating solar adoption. Key objectives include:

• Adding 5,000 MW of solar capacity within five years to meet the rising energy demand.
• Establishing solar parks with necessary infrastructure to attract investments.
• Promoting decentralized solar generation to minimize transmission losses.
• Introducing solar-powered agricultural pump sets for farmers to meet their daytime electricity needs.
• Encouraging local solar manufacturing to create job opportunities.

To facilitate industrial-scale installations, the government offers:

• Loans up to ₹10 lakh for rooftop solar projects.
• 40% Accelerated Depreciation benefits.
• 10-year tax holiday on solar projects.
• Renewable Energy Project loans up to ₹15 crore.

Andhra Pradesh’s Solar Energy Potential

The state’s natural conditions make it an ideal destination for solar power development:

• 300 sunny days per year with solar radiation exceeding 5 kWh/m²/day.
• Strong electricity distribution networks (APEPDCL & APSPDCL).
• A robust evacuation system supporting decentralized solar generation.

Solar Energy Portfolio in Andhra Pradesh

• Total renewable energy capacity: 9.3 GW
• Solar energy contribution: 4.5 GW

Major solar projects:

• Kurnool Ultra Mega Solar Park (1,000 MW)
• NP Kunta Ultra Mega Solar Park (978.5 MW)

Upcoming Projects:

• 5230 MW Integrated Renewable Energy Storage Project (IRESP)
• 3 MW Floating Solar Plant (Meghadri Gedda Reservoir, Vishakhapatnam)
• 7,000 MW solar procurement plan from SECI (2025)

Solar Opportunities in Andhra Pradesh for Developers & Businesses

The state is targeting a clean energy capacity of 27,921 MW by 2029, making it a golden opportunity for solar businesses. Here's how different sectors can benefit:

1. Residential & Agricultural Consumers

• Energy demand: Low to moderate
• Suitable solar solution: 1 kW to 30 kW rooftop systems
• Benefits: Lower energy bills, grid independence, government subsidies

2. Small & Micro Businesses

• Energy demand: Moderate to high
• Suitable solar solution: 100 kW to 2 MW capacity
• Benefits: Tax incentives, low-interest financing, reduced operational costs

3. Large Industries

• Energy demand: Very high
• Suitable solar solution: 500 kW and above
• Benefits: Accelerated depreciation, power cost savings, sustainability compliance

Why Switch to Solar in Andhra Pradesh?

• Significant Cost Savings: Cut down electricity bills by up to 80%
• Subsidies & Tax Benefits: Leverage financial incentives to reduce upfront investment.
• Energy Security: Protect against rising electricity tariffs with independent power generation.
• Eco-Friendly Choice: Reduce carbon footprint and contribute to a sustainable future.