Subsidy Stacking & Find Your Real Net Cost
Stacks drip
A drip system, solar pump or polyhouse may qualify for several subsidies at once — but caps and the apply-to-gross-vs-net order decide the truth. Stack every eligible scheme to get your real out-of-pocket cost, the effective subsidy % and the adjusted payback.
Stack your subsidies
Each coloured slice is a stacked subsidy peeling off the top; the green bar is your net out-of-pocket cost. Hatched = a cap (or the remaining balance) bound that subsidy.
Next: budget the real out-of-pocket figure of ₹53,550, not the ₹1,40,000 sticker — that is 61.8% covered and cuts your payback from 3.7 to 1.4 years. Confirm each scheme's current rate, cap and eligibility with your line department before you commit, as rates vary by state, year and category.
Net cost = gross − Σ subsidies (each capped, gross-type on the sticker, net-type on the remaining balance). Effective % = total subsidy ÷ gross. Payback = cost ÷ annual net benefit.
Runs entirely in your browser — nothing is uploaded. Rates are illustrative; verify with your scheme.
Subsidy stacking — key facts
- Net cost
- gross − Σ subsidies (each capped)
- Effective subsidy %
- total subsidy ÷ gross
- Apply order
- gross-type first, then net-type
- Cap rule
- applied = min(raw, cap, remaining)
- Floor
- net cost never below zero
- Payback
- cost ÷ annual net benefit
- Headline rates
- rarely add up — caps + net basis
- Source
- PMKSY · PM-KUSUM · MIDH/NHM · SMAM
- Privacy
- Runs in your browser; nothing uploaded
Subsidy scheme reference
Representative rates, caps and apply-to basis the tool uses. Figures are illustrative, not official quotes, and vary by state, year, category and unit cost. Source: typical Indian agri capital-subsidy schemes (PMKSY, PM-KUSUM, MIDH/NHM, SMAM) plus general grant-stacking logic.
| Subsidy | Type | Rate / amount | Cap (₹) | Applies to |
|---|---|---|---|---|
| PMKSY drip (smallholder) | Percent | 55% | ₹90,000 | Gross cost |
| PMKSY drip (other farmer) | Percent | 45% | ₹75,000 | Gross cost |
| PM-KUSUM solar pump | Percent | 60% | ₹1,80,000 | Gross cost |
| MIDH/NHM polyhouse | Percent | 50% | ₹5,00,000 | Gross cost |
| MIDH cold storage | Percent | 35% | ₹8,00,000 | Gross cost |
| SMAM farm machinery | Percent | 40% | ₹1,25,000 | Gross cost |
| State top-up (on net) | Percent | 15% | ₹40,000 | Net remaining |
| Capital interest subsidy | Flat | ₹25,000 | — | Net remaining |
| Flat district grant | Flat | ₹15,000 | — | Gross cost |
| Asset preset | Gross cost (₹) | Annual net benefit (₹) | Unit |
|---|---|---|---|
| Drip irrigation (1 ha) | ₹1,40,000 | ₹38,000 | ₹ per hectare system |
| Solar pump (5 HP) | ₹3,20,000 | ₹52,000 | ₹ per 5 HP set |
| Polyhouse (1000 m²) | ₹11,00,000 | ₹2,40,000 | ₹ per 1000 m² |
| Cold storage (small) | ₹25,00,000 | ₹4,60,000 | ₹ per small unit |
| Power tiller / implement | ₹2,60,000 | ₹70,000 | ₹ per machine |
The sticker price is not your cost
A farm asset that qualifies for several subsidies has a real cost buried under the rules. One scheme pays a percent of the gross sticker but only up to a ceiling; another pays a percent of whatever is left after the first; a third is a flat grant. Add the headline rates and you will overstate your support, because caps clip each subsidy and net-basis schemes work on a shrinking balance. The only honest figure is the net out-of-pocket cost after applying everything in order.
This tool builds the stack as a waterfall: the gross bar at the left, each subsidy peeling a coloured slice off the top, and the green net cost at the base. Where a cap or the remaining balance bound a subsidy, the slice is hatched so you can see the ceiling bite. It then recomputes payback on that net cost — usually a much shorter, more honest number than the gross payback — so you can decide whether the asset truly pays once the support is counted.
Pair it with the Drip Subsidy, Farm ROI Payback and Enterprise Budget tools to turn the net cost into a full investment case for the asset.
How to use it — five steps
- 1
Pick the asset
Choose drip, solar pump, polyhouse, cold storage or machinery to load representative costs and the subsidies that usually apply.
- 2
Enter the cost
Set the gross capital cost and the annual net benefit — the saving or extra margin the asset earns each year.
- 3
Select every eligible subsidy
Toggle on each scheme the asset qualifies for; the tool orders gross-type subsidies first, then net-type.
- 4
Read the net cost
See the waterfall, the net out-of-pocket cost and the effective subsidy percent once caps are applied.
- 5
Compare the payback
Check the gross-vs-net payback to decide whether the asset pays after subsidy, then confirm rates with your department.
Frequently Asked Questions
What does subsidy stacking mean?+
Subsidy stacking is claiming more than one subsidy or grant against the same capital asset — for example a central scheme plus a state top-up plus a flat district grant on one drip system. Each subsidy has its own rate, cap and rule for which cost it applies to, so the order and the ceilings decide your real out-of-pocket figure. This tool applies them in the correct order and shows the net capital cost that results.
How is the net capital cost calculated?+
Net cost = gross cost − the sum of all stacked subsidies, where each subsidy is applied in order and capped. The formula per step is: base = gross (for gross-type subsidies) or the running balance (for net-type), raw = base × rate (or a flat amount), applied = min(raw, cap, remaining balance), and the running balance falls by that amount. The final running balance is your net out-of-pocket cost.
Why does the order of subsidies matter?+
Because some subsidies are calculated on the gross sticker cost while others are calculated on the cost remaining after earlier subsidies. A 15% state top-up applied to the net balance is worth far less than 15% of the gross. To keep the maths sane and aligned with most stacking rules, this tool applies all gross-type schemes first, then the net-type schemes — so a top-up correctly works on what is left.
What is the effective subsidy percentage?+
The effective subsidy percent = total subsidy ÷ gross cost × 100. It is the single number that tells you how much of the asset is actually being covered once caps and the apply-to order are accounted for. A stack of a 55% capped central subsidy and a 15% net top-up rarely lands at 70% — the caps and the net basis usually pull the effective figure lower, which is exactly why you should compute it rather than add the headline rates.
What happens when a subsidy hits its cap?+
When the calculated amount exceeds the subsidy's ceiling, the tool applies only up to the cap and marks that step as capped (the bar is hatched in the waterfall). Cost above the ceiling is yours to fund. For example, a 55% PMKSY drip subsidy capped at ₹90,000 on a ₹2,00,000 system delivers ₹90,000, not ₹1,10,000 — so the effective rate on that step is 45%, not 55%.
How is payback recomputed after subsidy?+
Payback = capital cost ÷ annual net benefit. The tool shows it twice: on the gross cost and on the net (subsidised) cost. Because subsidies shrink the cost you actually financed, the net payback is shorter. For a ₹1,40,000 drip returning ₹38,000/year, gross payback is about 3.7 years; if subsidies cut the net cost to ₹50,000, payback drops to about 1.3 years — the figure that should drive the decision.
Which assets and schemes does it cover?+
It ships presets for drip irrigation, solar pumps, polyhouses, cold storage and machinery, with representative subsidies: PMKSY drip (smallholder and other), PM-KUSUM solar pump, MIDH/NHM polyhouse and cold storage, SMAM machinery, a state net top-up, a flat interest-subvention equivalent and a flat district grant. You can edit the cost and toggle any combination of subsidies to match your own situation.
Are the subsidy rates official quotes?+
No — the embedded rates and caps are representative figures drawn from typical Indian agricultural capital-subsidy schemes, included so you can model the stacking logic. They vary by state, year, category and unit cost. Use the tool to understand the order, the caps and the net effect, then confirm the current rate, ceiling and eligibility for each scheme with your line department before you commit.
Can I stack a percent subsidy with a flat grant?+
Yes. Flat grants (a fixed rupee amount) and percent subsidies stack the same way: each is applied in order against its base and floored so the net cost never goes below zero. A flat district grant applied to the gross reduces the sticker; a flat interest-subvention equivalent applied to the net reduces the financed balance. The waterfall shows each slice peeling off so you can see the contribution of every scheme.
Is it better to claim subsidy on gross or net?+
From the farmer's point of view, a subsidy that applies to the gross cost is worth more than the same rate applied to the net, because the gross is the larger base. You usually cannot choose — the scheme defines its basis — but knowing which is which explains why the headline rates don't simply add up, and helps you size the asset to fully use each cap before a net-basis top-up shrinks.
Does a bigger asset always capture more subsidy?+
Only up to each cap. Below the ceiling, a percent subsidy scales with cost; above it, extra cost is unsubsidised, so the effective percent falls as the asset grows. The sweet spot is sizing the asset to fully use each cap without pushing large amounts of cost into the unsubsidised zone. The tool flags capped steps so you can see where that ceiling bites.
Why is my effective subsidy lower than the headline rates added up?+
Three reasons: caps limit individual subsidies to a ceiling, net-type subsidies work on the shrinking balance rather than the gross, and no subsidy can take the cost below zero. Together these mean a 55% + 15% stack rarely reaches 70% effective. Computing total subsidy ÷ gross gives the honest figure, which is what you should plan and budget against.