If you have been thinking about installing solar panels at home but are unsure whether you can afford it, the good news is that the Indian government has made it significantly easier. Through combined central and state-level subsidised schemes, the upfront cost of solar panel installation can come down significantly.
Follow this guide to know about the solar panel subsidy in India to make an informed decision.
Why Solar Makes Sense for Indian Homeowners
Since India experiences ample sunlight throughout the year, installing solar panels on the roof is among the smartest choices for a power source. Beyond the environmental benefits, solar adoption directly reduces monthly electricity bills. (Up to 90%, at times)
It takes only 4-6 years for most of the household rooftops to recover their cost investment, after which power becomes absolutely free for the next 20-25 years. Moreover, the economic value of solar power is enhanced through subsidy programs offered by the government. This governmental aid contributes to reducing the overall costs associated with solar energy.
Understanding the Solar Subsidy in India
Solar panel subsidy in India refers to the financial aid by the government to bring down the price of solar rooftop installation. The Ministry of New & Renewable Energy (MNRE) in India provides the solar subsidy for homeowners. Some state governments offer extra incentives.
The primary program is the PM Surya Ghar: Muft Bijli Yojana. It is designed to fund households installing rooftop solar power systems. However, the subsidy depends on the capacity of the system. For instance:
- Up to 2 kW: ₹60,000 in total subsidy, where ₹30,000 is per kW.
- Between 2 kW and 3 kW: Subsidy of ₹30,000 per kW for the initial 2 kW and then ₹18,000 for additional kW, giving a total subsidy of ₹78,000.
- Above 3 kW: The subsidy limit is ₹78,000.
Once the installation is complete and verified, the subsidy goes straight to the bank account of the homeowner.
State-Level Support on Top of Central Subsidies
In addition to the central government subsidies, many state governments offer additional support. This is where the rooftop solar subsidy eligibility in India depends on where you live. For instance:
- In Uttar Pradesh, homeowners can receive a combined subsidy of up to ₹1,08,000 for rooftop solar systems up to 3 kW from the central and state governments.
- Residents from Maharashtra are eligible to apply for both central and state subsidies, where the state subsidy ranges from ₹25,000 to ₹60,000, while the central subsidy is ₹78,000.
- Some other states that offer strong rooftop solar schemes are Gujarat and Rajasthan. Nevertheless, prior to choosing any solar system for the roof, it is important to find out what each state offers regarding funding.
Who Is Eligible for the Solar Subsidy?
Knowing about the rooftop solar subsidy eligibility in India is a must if you are planning for an installation. Some of the requirements under PM Surya Ghar are:
- You must be an Indian from a lower or middle-income household.
- You must not have availed of a solar subsidy under any government scheme before.
- You must have a suitable rooftop space and a valid electricity connection for solar upgradation.
- The installed solar panels should be from the MNRE-approved vendor and Made-in-India.
- Application submission must always be before the scheme’s deadline.
Homeowners who reside in cooperative housing societies can submit collective applications.
How to Apply: A Quick Overview
Now that you are aware of the solar subsidies eligibility, let’s understand the application process. Today, the application process is digital, which makes the entire process accessible. Follow the steps:
- The first step is to visit the official PM Surya Ghar portal online and register yourself using details like state, DISCOM, electricity account number, and mobile number.
- Next, your electricity distribution company (DISCOM) reviews your application and assesses the roof space.
- After approval, choose an MNRE-registered solar installer from the portal itself.
- The installation process will begin. Soon after the installation, apply for a net meter connection. DISCOM will issue a commissioning certificate after an inspection.
- Finally, submit your bank account details on the portal. You will receive the subsidy amount in your account.
Note: It is advisable to keep your Adhaar, PAN, electricity bill, and proof of property ownership ready before the solar installation process. Also, your name should be the same on electricity bills and other official documents to avoid future application delays.
Do Not Overlook Net Metering
One of the most profitable features associated with rooftop solar power is net metering, but very few people are aware of this practice. If the amount of electricity generated by the solar panels exceeds your consumption, the excess electricity goes back to the electricity grid. This process is measured by your utility provider and credited to you.
This not only helps you reduce your consumption while the sun is up, but also builds credits to cover your expenses during the night when the sun is not out. Net metering helps make a difference to your ROI and forms an integral part of the solar subsidy package.
Things to Check before Solar Installation
Some noticeable things that will ensure your solar energy system functions well and keeps you eligible for the subsidy are:
- Roof Condition and Orientation: South-facing roofs with direct sunlight and reduced shadow cover produce high energy.
- Size of the system: It is advisable to choose a system size that meets your power needs rather than the subsidy.
- Vendors: Always go for only registered MNRE vendors. Choosing any other vendor makes you ineligible for the subsidy.
- Solar Panel Efficiency: The solar PV panels should be of high quality and made in India, with guarantees from a trusted solar panel manufacturer in India.
- Maintenance: Solar energy systems require occasional checking to ensure efficient functioning throughout their lifespan.
Conclusion
With the solar panel subsidy in India, rooftop solar has become a realistic choice for many households. The combination of the PM Surya Ghar initiative and additional subsidies from states ensures savings for eligible households. So, know how to apply for a rooftop solar subsidy in India, select a licensed solar power installer, and use net metering to guarantee to avail of the benefits. With the cost of electricity increasing and plenty of sunshine available in India, this is an ideal opportunity to switch over.