It is the season of solar panel subsidy announcements. Right after the Centre launched the PM Surya Ghar Muft Bijli Yojana to offer subsidies to 10 million households to set up rooftop solar systems, the Delhi government has announced an extra capital subsidy of Rs 2,000 per kilowatt (kW) to Delhi residents for rooftop solar panel installation. Both governments have caps on subsidies. Some other states, too, offer incentives on the use of solar rooftop panels.
If you are one of the environmentally conscious people and want to install solar rooftop panels on your house, here’s how to go about it.
How To Finance
- A 1 kW solar plant costs approximately Rs 60,000, but it can be cheaper depending on the chosen brand.
- Go for government subsidies (see Know Your Subsidies).
- If you generate surplus power, you can generate additional income by selling it to distribution companies (discoms) under various schemes, including the PM-Surya Ghar: Muft Bijli Yojana.
- You can also apply for a bank loan. Many banks offer loans up to Rs 10 lakh with repayment tenures of up to 10 years, with some promising coverage up to 80 per cent of the project cost. Interest rates range from 9.65 per cent to 12.5 per cent.
Know Your Subsidies
- Under the PM Surya Ghar: Muft Bijli Yojana, all residential households are eligible for subsidies up to Rs 30,000 per kW, capped at Rs 78,000. For solar panels up to 2 kW capacity, households can avail of a subsidy of Rs 30,000 per kW, and Rs 18,000 per kW for extra capacity up to 3 kW. For more than 3 kW systems, it is capped at Rs 78,000.
- The Delhi government provides a capital subsidy of Rs 2,000 per kW installation, up to Rs 10,000 per consumer.
- The Uttar Pradesh government also announced subsidies. The state will provide Rs 15,000 for 1 kW, and Rs 30,000 for solar rooftop plants above 2 kW in addition to the central subsidy.
- The Goa government announced a 50 per cent subsidy for the initial 10 kW, and 10 per cent for 10 kW up to 30 kW installations.