We all know that using solar energy, the electricity bills can be reduced. However, the cost of installing solar systems is high. To solve this problem, the Government decided to give solar subsidies for new solar system installations.
On February 15, 2024, our Prime Minister announced the new solar subsidy scheme, PM Surya Ghar Muft Bijli Yojana. The rooftop solar installation cost decreases significantly if you get the solar subsidy.
So, how much will you get as a solar subsidy? What are the eligibility criteria for this scheme? Finally, what will be your effective cost after receiving the amount? Continue reading to get answers to these questions.
What is PM Surya Ghar Muft Bijli Yojana?
According to a report published in The Economic Times, PM Surya Ghar Muft Bijli Yojana is a solar subsidy scheme that aims to provide up to 300 units of free electricity per month to 1 crore households. The subsidy is from the Central Government to reduce the burden of high installation costs for common households.
Rooftop solar panel installation will help households reduce their monthly electric bills. Thus, it will boost their savings per month. Besides households, solar systems can be used for bigger purposes to save the electricity bills. In case, you have cold storage, you can save your electricity bill by choosing a solar solution for cold storage.
Scroll below to learn the subsidy amount and after-subsidy cost for installing rooftop solar panels.
How Much Subsidy Can You Get on Rooftop Solar Panel Installation?
The government of India will provide subsidy amounts to households based on the capacity of the solar system. The Indian government will provide a Rs. 30,000 subsidy for 1KW solar panel installation and Rs. 60,000 for 2KW solar panel installation. For 3KW solar systems, the government will provide an additional Rs. 18,000 and it becomes Rs. 78,000. Even if you install a higher capacity, the amount is capped at Rs. 78,000.
If you are a resident of Durgapur, you need to contact the solar company in Durgapur to know more about it in detail.
Who is Eligible for The Subsidy?
While the Indian government will provide subsidies for solar installation at home, there are certain eligibility criteria. Here are the eligibility criteria to avail of the subsidy:
- You must be an Indian citizen.
- Property ownership, roof rights and the existing electricity connection must be registered in the name of the applicant.
- Individuals who availed of solar panel subsidies earlier will not be eligible.
- The solar panels that you install must be DCR or domestic content requirement-marked.
- You have to install solar panels only through a DISCOM-empanelled solar system installer.
- The DISCOM (Distribution Company) must be registered under the Ministry of New and Renewable Energy or MNRE.
Do you live in Kolkata and looking for a solar subsidy? Therefore, to become eligible for the scheme, you need to contact a solar company in Kolkata that is registered with your electricity supplier.
What is the Effective Cost of Solar Systems After Getting the Subsidy?
A subsidy is an amount that our Government will give you back after a thorough verification by DISCOM officials. Here are the effective costs of solar systems after you receive the subsidy amount:
1 KW: The cost is Rs. 90,000 – Rs. 1,30,000. After the subsidy of Rs. 30,000, the effective price will be Rs. 60,000 – Rs. 1,00,000.
2 KW: The cost is Rs. 1,40,000 – Rs. 1,80,000. After the subsidy of Rs. 60,000, the effective price will be Rs. 80,000 – Rs. 1,20,000.
3 KW: The cost is Rs. 1,90,000 – Rs. 2,30,000. After the subsidy of Rs. 78,000, the effective price will be Rs. 1,12,000 – Rs. 1,52,000.
Note- The home solar installation cost differs based on the capacity of the solar system.
It may further differ based on the vendor and technologies of the solar panel. Refer to the table below to know the price you will likely have to pay after availing subsidy.
To get the best solar system at an affordable price, you must consider solar quotations from different vendors. It will further help you choose the best vendor near you. For example, if you stay in Bardhaman, then you may contact a solar company in Bardhaman for installation.
Things to Remember to Avail Solar Subsidy on Rooftop Solar Installation Cost
Availing subsidy for rooftop solar system installation will be easy for you if you remember a few important things. Here are some of them:
1. Opt for An On-grid Solar System
Solar systems can be on-grid, off-grid or hybrid based on their functioning process. However, you must choose an on-grid solar system to avail of the subsidy of the PM Surya Ghar Scheme.
2. Ensure The Vendors Are Empanelled
You must choose DISCOM-empanelled vendors to become eligible for the solar subsidy. This will help you avail subsidy to reduce rooftop solar system installation costs.
Key Takeaways
Hopefully, at this point, you have all the information that will help you to get the subsidy seamlessly. To apply for the subsidy, you have to visit the National Portal for Rooftop Solar. Availing subsidies can help you reduce rooftop solar installation costs by Rs. 30,000 to Rs. 78,000. Further, you can reduce your electric bills every month based on the electricity generated by your solar system.
