With the increasing electricity demand comes the problem of insufficient resources to support such usage. This can be especially difficult for low-income families who battle paying high electricity bills every month for basic household needs. To help ease this burden, the government has suggested solar energy as a renewable and more affordable option for electrical power.
The growth of solar rooftops in India has been tremendous over the last few years. Residential rooftop solar accounts for roughly 20% of the overall rooftop mark. Residential installations have seen steady growth in the previous few years and have grown by 35% over the last year. The availability of subsidies and increased awareness of solar and its benefits is the primary catalyst for the growth of this sector.
This blog looks at the different subsidies available to you. Solar subsidies can improve affordability by reducing the cost of installing solar panels. If you’re thinking about installing solar panels, make sure to check out the different offerings that are available to you.
State Solar Subsidy Scheme:
The subsidy is available only for residential solar grid-connected systems (without batteries). Commercial or industrial sectors are not eligible to avail of this scheme. Each DISCOM has benchmarked the rates at which solar companies can sell solar systems. The amount of subsidy available varies between 20-40% and depends on the system size.
National Portal Solar Subsidy Scheme:
Under the national portal solar subsidy scheme, the government offers a fixed subsidy depending on the system size you wish to install. The details of the subsidy are as mentioned below.
How to apply online for national portal solar subsidy:
Step 1: Download Sandes App & Register
Step 2: Login and apply for the Rooftop Solar as per the form
Step 3: Wait for the feasibility approval from DISCOM. Once you get the feasibility approval, install the system from any of the registered vendors in your DISCOM
Step 4: Once installation is over, submit the plant details and apply for a net meter
Step 5: After installation of the net meter and inspection by DISCOM, they will generate a commissioning certificate from the portal
Step 6: Once you get the commissioning report submit bank account details and a cancelled cheque through the portal. The subsidy will come to your account within 30 working days
Difference between the national solar subsidy scheme & State scheme
Under the State Scheme, the customer pays only the post-subsidy price to the solar company (Total Price – Subsidy amount). The solar company claims the subsidy amount from the government post-installation.
In National Portal Scheme, customers apply for solar subsidies through the National Portal. The subsidy amount is transferred to their bank account within 30 days of solar system commissioning. The customer will initially pay the entire amount to the solar company.
Adopting solar energy for your home does not have to be a complicated process – Freyr Energy is here to help make it as easy as possible. We take care of all necessary documentation and approval processes, whether central or state subsidy. We hope it has been a worthwhile read, and if you have any other questions or concerns about state and national solar subsidies, please get in touch with us anytime at sales@freyrenergy.com.
Frequently Asked Questions
The latest solar subsidy is the PM Surya Ghar Muft Bijli Yojana. This scheme helps you get a subsidy of Rs. 30,000 for a 1 kW system. For a 2 kW system, the subsidy amount is Rs. 60,000. For 3kW and higher, the subsidy amount is fixed at Rs. 78,000.
The national portal solar subsidy scheme is favoured more than the state’s subsidy scheme. As per reports, the national solar subsidy is more efficient and streamlined. The national subsidy comprises a simple process, has a unified platform, and provides direct benefit transfer. The state solar subsidy scheme involves more interactions with local DISCOMs. It leads to delays and complications. The state scheme requires customers to pay the investment amount before installation and then claim the amount from the government. This scheme, therefore, is time-consuming.
Only residential, institutional, and social sectors are eligible for the state solar panel installation subsidy scheme. Commercial, industrial, and public sector undertakings are not eligible.
The state solar installation subsidy scheme offers 40% of the total installation cost for a 3 kW. For systems between 3 kW to 10 kW, it offers 20% of the installation cost.
The following are the conditions to apply for the national portal solar subsidy.
- You must be a permanent Indian citizen.
- Must be more than 18 years old.
- You must have your own house with the necessary documents.
- Your house must have a roof suitable for installing solar panels.
- The house must have a valid electricity connection.
- You must be involved in government service.
- Not availed of any other solar power subsidies.
- You are earning less than 1 or 1.5 lakh per year.
The national portal solar subsidy offers a subsidy of Rs. 30,000/- for a 1 kW system, and Rs. 60,000/- for a system between 1 kW and 3 kW. For 3 kW to 10 kW, the subsidy amount is fixed at Rs. 78,000/-
Follow the given steps to apply for a national portal solar subsidy:
- Register on the portal — https://pmsuryaghar.gov.in/
- Fill out the form and upload the necessary documents
- You will get the feasibility report shortly.
- Contact a registered solar installation company to install your solar energy system.
- Once you complete installation, submit your plant details.
- Apply for net metering.
- Government officials visit your home to inspect the solar energy system.
- You receive a commissioning certificate from the national portal.
- Submit your bank details and a cancelled cheque.
- You receive the subsidy amount within 30 days.
Only the residents of Uttar Pradesh have the option to avail subsidy from both state and central governments. You can combine both subsidies to install a larger solar system.
For state solar rooftop subsidy yojana you require a land holding certificate, an Aadhaar card, proof of address, and bank account details.
For national solar subsidy, you must submit identity proof, address proof, income proof, house-ownership proof, filled application form, solar installation, and commission certificate.
The subsidy application process takes 3 to 4 months. Here’s the break-up. Application Submission: 1–2 weeks, Technical Feasibility: 1–2 weeks, Installation and Commissioning: 1–2 weeks, Submission of Plant Details and Net Metering: 1–2 weeks and Commissioning Certificate and Subsidy: 1–2 weeks.