Home solar systems have gained significant recognition and adoption among homeowners seeking to avoid high electricity expenses. The Indian government is also committed to promoting this clean, cost-effective, and renewable energy source among residents by subsidizing the costs of home solar systems.

The Rooftop Solar Programme Phase II scheme has undergone substantial revisions since its inception, with the aim of simplifying the process and making financial assistance easily accessible to all. The National Portal for Rooftop Solar enables consumers to swiftly initiate their subsidy application online. This subsidy process ensures that approved solar benefits are directly transferred into the consumer’s account upon clearance of their installed Rooftop Solar (RTS) system.

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The solar panel subsidy provided by the MP government falls under the Rooftop Solar Programme Phase II scheme initiated by the Ministry of New & Renewable Energy (MNRE). Central Financial Assistance (CFA) or Solar Subsidy Support can help alleviate the cost of solar installation for your home.

However, the national solar subsidy program is exclusively available to residential property owners, institutions, and social sectors. Industrial, commercial, and public sector undertakings are ineligible for this subsidy scheme for solar installation.

The recently introduced subsidy rates under the national simplified subsidy scheme offer a fixed amount for each kilowatt (kW) of solar system capacity. These subsidy tiers for various system capacities are uniform across all states in India.

Rooftop Solar System Capacity% Based on System CapacityAmount in ₹
1kW to 3kW40%18,000 per kW
Above 3kW, up to 10kW20%18,000 per kW for the first 3kW
9,000 per kW thereafter for the rest
Above 10kW1,17,000 fixed
Group Housing Societies/Residential Welfare Associations (GHS/RWA)20%, for up to 500 kW capacity

Calculation of CFA/subsidy:

The CFA/subsidy calculation is determined by either your total solar system capacity or the maximum solar system capacity approved by your local DISCOM, whichever is lesser.

In pursuit of achieving the 4 GW residential solar installation target by 2024, the Government of India has initiated solar panel subsidies in MP and various other states, specifically focusing on rooftop solar projects. The objective is to promote solar adoption among homeowners. Since the inception of the simplified national program, the process of subsidy application and distribution has become quicker, easier, and more transparent for consumers.

On July 30, 2022, Prime Minister Narendra Modi launched the National Portal for Rooftop Solar to advocate for a unified National Subsidy Scheme across all states. This online platform has addressed many challenges faced by consumers in accessing their entitled subsidy benefits.

The centralized platform accepts applications, enabling solar-ready homeowners to commence the subsidy process online. This replaces the cumbersome old procedure, which necessitated multiple visits to the local DISCOM company and restricted applications solely to state-level subsidy programs (which will continue alongside the National Subsidy Scheme). Consequently, consumers now wield greater control over their subsidy application at each stage, from form submission and documentation to inspection and subsidy disbursement.

The portal incorporates advanced features to facilitate transparent processing of solar rooftop subsidies in Madhya Pradesh and nationwide. Registered users can track the status of their subsidy application online throughout the entire process. They can log in at their convenience to complete the application form, receive notifications upon approval (or rejection), and ascertain their potential subsidy amount following the successful installation and inspection of their rooftop solar system.

The National solar subsidy scheme, also known as a Direct Benefit Transfer (DBT) scheme, ensures that consumers applying for solar subsidies through the national portal receive the approved subsidy amount directly in their bank account within 30 days of solar installation.

  1. Locally Manufactured Solar Panels: According to the streamlined subsidy procedure, homeowners are mandated to procure solar panels made in India, utilizing solar cells also manufactured in India, when configuring their home solar system. Verification of Approved Models & Manufacturers of BIS-compliant Solar Photovoltaic Modules can be done through the ALMM list.
  2. On-Grid Solar Systems: Eligibility for solar system subsidies in MP and other states is restricted to residential on-grid projects, excluding battery backup. Homeowners retain the option to incorporate external solar batteries into their RTS framework, though the cost of this additional component is not factored into subsidy calculations.
  3. Registered/Empanelled Solar Vendors: The MNRE has compiled a roster of registered/empanelled solar vendors authorized to commission and install subsidized RTS projects. These vendors undergo screening and training by the Ministry to ensure adherence to minimum specifications and standards stipulated in the simplified procedure for rooftop system installations.
  4. Vendor Responsibilities: Empanelled solar vendors are entrusted with several crucial responsibilities in subsidized RTS projects. These include conducting site assessments aligned with relevant technical and financial parameters to ascertain solar suitability. Additionally, vendors must obtain all necessary permits for installation and provide assistance to inspecting authorities during net-metering system installation and solar system inspection. Vendors are also obligated to maintain RTS plants for a specified minimum duration post-installation.
  5. Subsidy Rates: The online portal will publicize subsidy rates for each calendar year under the simplified process. These subsidies, allocated for various system capacities, will be consistent for beneficiaries across all states and Union Territories in India. Revised subsidy rates will be promptly published on the national portal.
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When seeking an economical option for rooftop solar systems with subsidies in MP, a straightforward grid-interactive setup without batteries is ideal. The financial perks of solar energy become evident once your solar panels commence generating electricity, lasting throughout the system’s 25-year lifespan. In fact, your solar panels are projected to recoup their costs in merely 6-8 years through monthly savings on your electricity bill. Post-payback period, the electricity generated by your solar panels becomes essentially free for your household.

Steady Power Supply

For a reliable power source at home, solar electricity from on-site panels surpasses traditional grid power. Inclement weather like rain and storms can disrupt grid power supply for hours or even days. Conversely, a rooftop solar plant matches your home’s electricity demand by generating power and provides access to grid electricity for additional requirements. Integration of external solar batteries allows storage of surplus energy production during weak sunlight or nighttime, reducing dependence on grid electricity.

Savings on Electricity Bills

Solar energy, a freely available power source year-round, promises daily sunrise without hindrance. Transitioning to a home solar power plant constitutes a one-time investment yielding savings and substantial returns over its 25-year lifespan. Since solar power accounts for a significant portion of your home’s energy consumption, concerns regarding load shedding or high electricity bills diminish. Solar power not only reduces monthly electricity expenses but also becomes an additional income source when surplus electricity is sent to the local grid in exchange for solar credits, resulting in considerable annual energy savings.

Self-Generation of Electricity

Unlike the extensive power line network utilized by electrical grids, a subsidized solar plant in MP empowers your home to generate its electricity, granting more control over electricity supply without relying on unpredictable grid supply. By selecting the appropriate capacity RTS system based on your home’s monthly electricity needs, you can minimize grid withdrawals. Additionally, advanced solar panels with high energy-efficiency ratings yield more solar electricity per solar cell, necessitating fewer panels to design a suitable RTS system matching your electricity demand.

Determining the cost of a solar panel system in Madhya Pradesh is a multifaceted process influenced by various factors:

Quality and Quantity of Solar Panels: When sizing your home solar system, the objective is to select a capacity that offsets a significant portion of your power bill, thus reducing reliance on the grid. However, a larger rooftop solar (RTS) system requires more solar panels to generate the desired capacity, leading to higher costs.

To mitigate expenses, you might consider purchasing a lower-capacity solar system than required or opting for cheaper, less efficient solar panels, though this necessitates a higher number of panels to achieve the promised capacity.

Investing in solar panels is not merely a one-time expense but a long-term commitment spanning 25 years. Higher-quality solar panels offer superior efficiency, reliability, performance, warranty terms, and manufacturer support, resulting in greater savings over time despite the initial higher cost.

To qualify for solar panel subsidies in MP and other states, ensure that all components of your RTS system adhere to technical standards specified by the MNRE. Empanelled solar vendors responsible for commissioning and installing your on-grid solar system are mandated by the MNRE to strictly adhere to prescribed technical standards and sign an agreement with consumers to ensure compliance. Consequently, the MNRE has devised a model agreement, which consumers can submit completed and signed during the subsidy application process on the online portal.

Installation Convenience: Factors such as the number of panels, roof type, and complex angles can complicate the installation process, thereby increasing total solar costs. Solar panels must be positioned to maximize sunlight exposure and optimize performance throughout all seasons.

A professional solar installer evaluates your rooftop space for orientation, shading, structural integrity, and overall solar viability to determine the most suitable layout and mounting structure. A thorough site survey also considers your home’s energy requirements and design preferences.

For example, your solar vendor might recommend an elevated mounting structure to preserve rooftop space. A pergola-style RTS system enhances structural aesthetics and provides an additional rooftop leisure area.

Out-of-Pocket Expenses: Owning and maintaining a home solar system entails certain out-of-pocket costs. Net metering regulations govern grid-interactive systems, where excess solar energy is transferred to the government grid in exchange for solar credits. Your net meter records and charges for grid electricity consumption during periods of insufficient solar production, such as nighttime or inclement weather.

Your monthly utility bill details total imports and exports, along with available solar credit balance. If imports exceed exports and solar credits do not cover withdrawals, you must settle the difference out of pocket.

All home solar systems require maintenance. While performance and equipment warranties cover key components, additional maintenance costs may arise post-installation. Many solar vendors offer comprehensive annual maintenance contract (AMC) packages, providing routine inspection, troubleshooting, and maintenance services throughout the system’s lifespan.

Under the simplified solar subsidy application process, you have the flexibility to select the appropriate size, type, and style of solar system based on your energy needs and budget. Empanelled solar vendors can offer guidance to help you make informed decisions. However, subsidy eligibility criteria must be met to receive solar subsidies in MP.

The revised subsidy calculation method determines subsidy based on RTS system capacity, approved after inspection by an authorized DISCOM official. This differs from the previous approach of using MNRE-issued benchmark costs for various solar system sizes. Additionally, the revised method excludes net metering and solar battery costs from subsidy calculations.

For precise solar system cost estimation in Madhya Pradesh, obtaining a quote from Synergy solar, an experienced solar company, is recommended.

The introduction of the online portal has simplified the process of accessing solar panel subsidies in MP and other states. Below, we have outlined key steps to promptly commence your subsidy process online through the solar rooftop subsidy yojana:

  1. Start by activating your beneficiary account on https://solarrooftop.gov.in/ using your mobile number and email id.
  2. Once your account is established, you will receive login credentials, enabling you to access your account anytime to complete the subsidy form, providing details of your intended solar power plant installation and bank account information. Your application will be forwarded to your local DISCOM authority for assessing the technical feasibility of your proposed RTS plant and issuing approval in accordance with prevailing state regulations.
  3. Upon receipt of technical feasibility approval from the DISCOM, the same status will be updated on your online application, with corresponding email notification.
  4. With the requisite approval in hand, proceed with the installation of your RTS system. It is advisable to engage only empanelled vendors and submit all related documents online to maintain eligibility for subsidy benefits. The subsequent step in RTS system installation entails a physical inspection of your solar panel site and the newly installed net meter.
  5. Following the setup of your residential solar plant, a designated DISCOM official will conduct a site survey of your location and the installed RTS system. Alongside inspection, the official will install and integrate the net metering system.
  6. The DISCOM will update all pertinent details based on the inspection on the online portal. A successful assessment will result in clearance of your entitled subsidy amount, which will be reflected on your online subsidy application.
  7. Expect the approved subsidy amount to be credited directly to your bank account within 30 days post installation. The subsidy rate for the ongoing calendar year will be applicable to all RTS installations nationwide.
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A standard rooftop solar system with the typical number of solar panels necessitates approximately 10 square meters of unshaded area. However, a precise estimation hinges on variables such as the mounting structure type and size, as well as the solar panel quality. Greater efficiency in solar panels results in a reduced requirement for panels to generate a 1 kW capacity.

It is strongly recommended that if you have the option for net metering, you should opt for it, particularly if you are considering availing solar subsidies in MP. Net metering provides homeowners with the assurance of grid support during periods of reduced solar electricity generation. Additionally, your grid-connected solar system is configured to transfer any surplus or unused solar energy back to the grid, earning you solar credits. These credits can then be used to offset the cost of grid electricity for additional power needs. Any remaining solar credits at the end of the year are reconciled in cash, providing an additional source of income.

A basic grid-connected solar system, lacking batteries, will cease operation during any blackouts occurring in your area. Given that your solar system interacts with the grid, transmitting and receiving electricity, there is a potential risk of electrocution for utility workers servicing the grid. However, you can mitigate power disruptions by integrating solar batteries into your home solar system. Such a setup seamlessly transitions to solar battery power in the event of a blackout, ensuring uninterrupted electricity supply and preventing you from being left in darkness.

While maintaining connection to the grid is necessary to qualify for a solar subsidy, achieving complete energy independence is still feasible. By incorporating solar batteries into your home’s solar photovoltaic (PV) system, you can attain self-sufficiency, relying on stored power rather than the public grid. Your home solar system is integrated with a net meter, ensuring that solar energy generated by your panels serves as the primary power source for your residence.

During periods of low solar production, such as nighttime, your home automatically switches to drawing power from available solar battery reserves. Only when neither solar nor stored battery power meets your electricity needs does your home rely on grid electricity, utilizing it as a secondary power source.

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