PM Surya Ghar Yojana: If you’re feeling the strain of high monthly electricity bills, the central government’s flagship initiative, the “PM Surya Ghar Free Electricity Scheme,” presents a fantastic opportunity for you. This scheme offers a substantial subsidy for individuals to install solar panels on their rooftops, allowing for up to 300 units of free electricity each month.
However, the pressing question for many middle-class families is about the subsidy amount per kilowatt (kW), the installation costs, and the time required to recover this investment. Let’s address these queries.
What is the subsidy for different kilowatt systems?
The market price for installing solar panels without any subsidies ranges from Rs 60,000 to Rs 80,000 per kilowatt. Yet, through the PM Surya Ghar Yojana, the government subsidizes 40% to 60% of this cost:
1 kW system: The government offers a subsidy of up to Rs 30,000.
2 kW system: This system provides a subsidy of up to Rs 60,000.
For systems of 3 kW or more: The maximum subsidy available is Rs 78,000. It’s crucial to understand that even systems exceeding 3 kW will still have a cap of Rs 78,000.
Double benefits for residents of UP: Certain state governments, such as Uttar Pradesh, are adding an extra state subsidy of Rs 30,000 on top of the central government’s subsidy. This means that residents in UP could potentially save up to Rs 1,08,000.
Calculating expenses and savings: How long will it take to recover the investment?
Imagine you installed a 3 kW solar system, costing around Rs 1,80,000 in total.
After applying the Central Government subsidy of Rs 78,000, your out-of-pocket expense would be just Rs 1,08,000.
A 3 kW solar panel typically generates about 250 to 300 units of electricity monthly. At a rate of ₹8 per unit, this system could save you around Rs 2,200 each month, totaling Rs 26,400 annually.
This indicates that you would recover your entire investment in just 4 years and 1 month. In Uttar Pradesh, thanks to the additional subsidy, this recovery period could be shortened to just 3 years.
Since the life of these solar panels is more than 25 years, after recovering the cost, you will get the benefit of absolutely free electricity for the next 20 years.
Solar panels can be installed on the roof in just these 6 steps
To be eligible for this scheme, you must be an Indian citizen, have your own roof, and have a valid electricity connection. If you are eligible, you can apply in the following six easy steps:
Step 1: Registration: First, visit the official national portal www.pmsuryaghar.gov.in. Register by entering your state, electricity distribution company (DISCOM), consumer number, mobile number, and email.
Step 2: Apply: Login with consumer number and mobile and fill the online form for ‘Rooftop Solar’.
Step 3: Feasibility Clearance and Installation: After getting technical approval from the DISCOM, get your rooftop solar plant installed from any of the registered vendors listed on the portal.
Step 4: Apply for Net Metering: After the installation is complete, submit the complete plant details on the portal and apply for net metering.
Step 5: Inspection: Discom officials will come and inspect your plant and after the net meter is installed, a ‘Commissioning Certificate’ will be generated on the portal.
Step 6: Subsidy will be credited to your account: After receiving the commissioning report, upload your bank account details and canceled check to the portal. The subsidy amount will be credited directly to your account within 30 days of application.
Easy loan facility is also available
If you don’t have the money to invest initially, the government is also offering loans through banks at a very low interest rate (around 7%), without any guarantees. This interest rate is set just 0.5% above the RBI repo rate, significantly reducing the EMI burden on customers.