Govt of India offers a 40% subsidy (up to 3 kW) to help residents & businesses install rooftop solar panels, reducing electricity bills & carbon footprint while potentially earning income by selling excess energy back to the grid.
Under the name of Solar Rooftop Scheme, this was launched in 2014 with the goal of achieving a cumulative installed capacity of 40,000 megawatts (MW) by 2022. Currently, it is in 2nd phase.
In this article, we will discuss the Solar Rooftop Scheme, its benefits, and every provision of the scheme.
What is Solar Rooftop Scheme?
Solar Rooftop Scheme provides a subsidy for installing solar plants on residential rooftops. Under the scheme, Govt of India gives a 60% subsidy on Solar Plants of capacity up to 3 Kilowatt.
Solar Rooftop Scheme has the following 3 components in it –
- Subsidy Scheme
- Net Metering
- Loan Scheme
Subsidy on Solar Panel Installation
The Rooftop Solar scheme offers financial support to make installing solar panels more affordable. This “Solar subsidy” comes in two forms:
- Central Financial Assistance (CFA): Reduces your upfront cost, essentially a discount on the system price.
- State-specific subsidies: Many states offer additional financial incentives on top of the CFA.
Together, these subsidies can significantly lower the investment needed for your rooftop solar system, making it a more attractive option for generating clean energy at home.
You can find details about subsidies, various state governments are offering later in this article.
Net Metering
Net metering is a billing mechanism that allows solar energy system owners to receive credit for the electricity they generate and send back to the grid.
This essentially means your electricity meter can “Run Backwards” when your solar panels produce more power than you consume.
Here’s how it works in the context of a solar rooftop scheme:
- You install solar panels on your rooftop
- During the day, your panels generate electricity
- You use some of this electricity to power your home
- If you generate more electricity than you use, the excess gets exported back to the grid
- Your net meter tracks the flow of electricity in both directions
- At the end of the billing cycle, you are only charged for the net difference between the electricity you consumed and the electricity you exported
Benefits:
- Monetize the excess capacity of your rooftop solar plant when not in use
- Low installation cost, since battery and inverter are not needed
Loan Scheme
Solar loans are available from various banks, NBFCs, and specialized solar financing companies. Dedicated solar loans often offer competitive rates and terms.
General home improvement loans can also be used, but rates may be higher. Some government-backed loan programs offer subsidized rates.
Subsidies Under Solar Rooftop Scheme
Subsidies offered by various state governments are given below :
| Madhya Pradesh | 40% of the cost of the solar system, upto 1,03,480 |
| Rajasthan | 18,000/kW for the first 3 kW.9,000/kW for remaining capacity up to 10 kWAbove 10 kW, fixed subsidy of 1,17,000/kWp |
| Haryana | 18,000/kW for the first 3 kW 9,000/kW for the rest, up to 10 kW per house Above 10 kW, fixed subsidy of 1,17,000/kWp |
| Delhi | 1,13,480 for systems ≤ 3 kW.1,03,480 + 10,000 = 1,13,480 for systems 3 kW to 10 kW |
| Maharashtra | 81,000 for systems ≤ 3 kW1,03,480 + 9,000/kW = 1,12,480 for systems 3 kW to 10 kW1,17,000 (fixed) for above 10 kW |
| Bihar | 65% of benchmark cost for capacity up to 3 kWp45% of benchmark cost for capacity of 4 kWp to 10 kWp |
Eligibility
Who is eligible: The scheme primarily targets residential, institutional, and social sectors. Industrial, commercial, and public sector undertakings typically aren’t eligible.
Capacity limit: Maximum capacity eligible for subsidy varies by state, but generally falls within 5-10 kW range.
How to Apply for Solar Rooftop Scheme?
1. Choose and Register on National Portal:
- Visit the National Portal for Rooftop Solar: https://solarrooftop.gov.in
- Select your state from the dropdown menu.
- Register and create an account.
2. Enter Project Details:
- Choose the type of system you plan to install (residential, institutional, etc.).
- Enter your desired capacity (in kW), ensuring it adheres to your state’s limit.
- The portal will estimate the eligible subsidy amount based on your input.
3. Choose and Contact Vendor:
- The portal lists empaneled vendors certified to install solar systems under the scheme.
- Review vendor profiles and compare quotes to select a suitable one.
- Contact your chosen vendor and discuss installation details and pricing.
4. Finalize Agreement and Proceed:
- Work with the vendor to finalize installation agreement, including cost and scope.
- Obtain necessary permissions and approvals from local authorities, if required.
5. Installation and Net Metering:
- The vendor will install the solar system at your premises.
- Ensure net metering setup is completed for proper grid connection and electricity exchange.
6. Subsidy Application and Approval:
- Once installation and net metering are complete, your vendor will submit the subsidy application on your behalf through the National Portal.
- The application will be evaluated by the relevant authorities based on state regulations.
- Upon approval, the subsidy amount will be credited to your account.
Conclusion
So, there you have it! Harnessing the sun’s power on your rooftop is closer than you think. With clear provisions, attractive subsidies, and a straightforward application process, the solar rooftop scheme makes switching to clean energy a feasible and rewarding choice.
Don’t miss the opportunity! Visit the National Portal today and take the first step towards a brighter, more sustainable future, one sunny panel at a time.