One of the biggest reasons warehouse owners hesitate about solar is the upfront cost. But what many do not know is that the Indian government has created several schemes and tax benefits that can reduce this cost significantly. This blog explains what is available, who can claim it, and how to go about it.
1. Accelerated Depreciation — The Biggest Tax Benefit for Commercial Solar
This is the most valuable incentive for warehouse owners and businesses. Under Section 32 of the Income Tax Act, solar power equipment qualifies for 40% depreciation in the first year itself. This means a business that installs a ₹1 crore solar system can claim ₹40 lakhs as a business expense in the very first year, reducing its taxable income by that amount.
Solar Investment | 40% Depreciation Claim | Tax Saved (25% bracket) | Effective Net Cost |
|---|---|---|---|
₹50 lakhs | ₹20 lakhs | ₹5 lakhs | ₹45 lakhs |
₹1 crore | ₹40 lakhs | ₹10 lakhs | ₹90 lakhs |
₹2 crore | ₹80 lakhs | ₹20 lakhs | ₹1.8 crore |
2. Net Metering — Get Credit for Surplus Solar Power
Net metering allows businesses to send excess solar electricity back to the DISCOM grid and receive credit on their bill. In UP, this is regulated by UPPCL. For a warehouse that operates 5 days a week, solar panels keep generating on weekends and holidays too. With net metering, that extra generation does not go to waste — it gets credited to your account.
3. PM Surya Ghar Muft Bijli Yojana — Awareness for Commercial Users
While this scheme primarily targets residential consumers, its implementation has increased awareness and support infrastructure for solar across India. The scheme has pushed DISCOMS to improve net metering processes, which benefits commercial users like warehouse owners too.
4. GST Relief on Solar Equipment
Solar panels, solar inverters, and solar equipment attract a reduced GST rate of 12% as compared to standard industrial equipment. This directly reduces the installation cost for businesses.
5. Priority Sector Lending for Green Energy
RBI has categorized solar lending under priority sector. This means banks are encouraged to give solar loans to businesses, including MSMEs, at competitive interest rates. State bank branches and cooperative banks in UP are active participants in this.
Govt Scheme Ready Location
Apply Schemes on a Warehouse That's Built for the Future
If you are planning to claim government solar benefits, you need a warehouse with a proper, stable rooftop — not an old shed with a leaking roof. Ashoka Warehousing at Sitapur National Highway, NH-24, Lucknow is a newly constructed facility specifically designed for serious business operations. The structural integrity of the building makes solar installation straightforward and scheme applications easier.
New construction | Proper legal documentation | Ideal for scheme applications | ₹18/sq ft
Having a formal lease agreement with Ashoka Warehousing also helps when applying for business solar loans, since banks require proof of business premises. The 54,000 sq ft Warehouse facility on Sitapur Highway is particularly well-suited for large solar installations that can maximize government tax benefits.
Why Ashoka Warehousing is the Best Choice for Your Business
When you are planning to claim government solar benefits, the quality and documentation of your warehouse matters. Ashoka Warehousing is a properly constructed, legally clear facility with all required infrastructure in place. The formal lease at ₹18/sq ft strengthens your position with banks and scheme applications. Located on NH-24 Sitapur Road, it combines the practical advantages of highway logistics with the financial advantages of affordable rent and solar-ready infrastructure. For businesses that plan ahead, Ashoka Warehousing is the right platform to build on.
Step-by-Step Process to Claim Solar Benefits for Your Warehouse
Get your warehouse electricity consumption data (last 12 months) from your DISCOM
Engage an MNRE-empaneled solar installer for a site survey and system design
Get 3 quotes and select the installer — ensure they handle DISCOM paperwork
Apply for net metering connection with UPPCL before installation begins
Complete installation — process takes 4–8 weeks for large systems
File for accelerated depreciation in your annual tax return with your CA
Submit net metering meter data monthly to track credits
Lucknow's Warehousing Landscape — Key Areas
Sitapur Highway NH-24
Best for large-scale solar — open rooftops, new construction
Amausi Industrial Zone
Established area, moderate solar potential
Kanpur Road NH-27
Heavy industrial, some solar-enabled facilities
Chinhat Industrial
Older structures, solar retrofit more complex
Who can claim accelerated depreciation on solar in India?
Any business entity — proprietorship, partnership, LLP, or company — that is a taxpayer and owns the solar system can claim accelerated depreciation under Section 32 of the Income Tax Act. This benefit is not available on the OPEX/RESCO model since the solar company owns the system in that case.
Is there any subsidy for commercial warehouse solar in UP?
Direct cash subsidies for commercial/industrial solar are limited compared to residential. However, the 40% accelerated depreciation, net metering credit, and reduced GST collectively provide significant financial relief. UPNEDA also runs periodic schemes — check their official website for current offerings.
How do I apply for net metering in Lucknow (UP)?
Net metering applications in Lucknow are handled by UPPCL (Uttar Pradesh Power Corporation Limited). You or your solar installer submits the application through the UPPCL online portal or district office. Your solar installer typically handles this process as part of their service. UPPCL is supposed to process net metering applications within 30 days.
Comments
Log in or sign up to join the conversation.