In the last few years, rooftop solar has emerged as a trusted solution for the energy requirements of households and businesses. With India’s tropical weather and access to abundant sunlight for a major part of the year, solar energy presents a sustainable alternative to conventional energy sources. Apart from being environmentally friendly, it is also a cost-effective option to meet energy requirements. Understanding the pricing, benefits, government schemes, financing options, and implementation processes of solar panels is crucial for individuals and businesses looking to harness the power of solar energy.
Cost of Solar Panels, 2024
Several factors contribute to the price of rooftop solar. Gaining proper knowledge of the type of solar system being installed, the location, weather conditions, companies that install solar systems, subsidies offered in the state, required electricity capacity, etc., is pivotal. This will enable you to make informed decisions. If you want to understand how to embark on this process, you can visit our blog section to get all the required information. Let us now explore basic pricing options for rooftop solar.
| Solar Panel for | Budget |
| 1. Single Inverter Battery Charging | Rs. 30,000 to 50,000 |
| 2. Double Inverter Battery Charging | Rs. 50,000 to 70,000 |
| 3. Only 1kW Solar Panel | Rs. 36,000 to 50,000 |
| 4. Only 3kW Solar Panel | Rs. 1,08,000 to 1,50,000 |
| 5. Only 5kW Solar Panel | Rs. 1,80,000 to 2,50,000 |
For a 1 kW solar panel system, the price typically ranges from Rs 30,000 to Rs 60,000. Additionally, you’ll need to install an extra solar panel equipped with a controller of an appropriate voltage level (either 12V or 24V), which can cost anywhere between Rs 35,000 and Rs 50,000. If the system is set up with two batteries, the 24V solar panels would cost approximately between fifty thousand rupees and seventy thousand rupees. An independent grid setup can cost about Rs 1,00,000 and still provide sufficient power for about 75% of the home, excluding water motors and ACs. Consequently, one may need to install a 2 kW inverter for about Rs 1.5 lakhs. Financing possibilities are also available in the form of solar loans and EMIs for installations.
Subsidies for rooftop solar
Regarding subsidies for rooftop solar installation, almost 25% of all households in the country now have power meters showing off-take in the range of 3 kW to 10 kW. This makes the initial cost to install a solar system for a 3 kW capacity at least about Rs 1,80,000 and for 5 kW about Rs 3,00,000. The government subsidy for installations in this range now varies from Rs 54,000 to Rs 72,000, depending on the size, making them financially more viable.
Recently introduced PM Surya Ghar Muft Bijli Yojana, is a promising intervention for rooftop solar installation. Launched on 13 February, this project is slated to install rooftop solar on one crore households with a total budget of Rs 75,021 crore. With this households are going to receive hefty subsidies through direct bank transfers. The households are eligible to get Rs 30,000 for 1 kW systems, Rs 36,000 for 2 kW systems, and Rs 78,000 for 3 kW systems or higher. Option to get collateral free and low-interest loans at about 7% interest is also available. To avail of the subsidies, households need to first register themselves on the national portal and then select a vendor through a transparent bidding process to install the panels.
After speaking to many people, it has come to light that despite the government’s subsidy scheme, many people are not showing interest due to the high initial price of solar installation. To address this, the government has now made provisions to provide low-interest bank loans. With this, any consumer can have solar installed by making only a 20% down payment, with returns expected within 3-5 years.
How to apply for PM Surya Ghar Muft Bijli Yojana?
Solar energy plays a crucial role in India’s ambition to generate 500 GW of renewable energy by 2030. With a significant increase in solar energy capacity additions over the past few years, rooftop solar is expected to contribute significantly to consumers’ energy security and overall cost reduction.
To apply for the PM Surya Ghar Muft Bijli Yojana, households can visit the official website, and register with their state, electricity details, and contact information. Once approved, they can proceed with installation by registered vendors and receive subsidies directly into their bank accounts within 30 days of commissioning. In addition to subsidies, the Prime Minister’s Solar Scheme offers a streamlined application process.
Through a dedicated online portal, households can seamlessly apply for subsidies, select suitable vendors for installation, and receive expert guidance throughout the entire process. To facilitate widespread adoption in rural areas, Model Solar Villages will be established in each district, serving as benchmarks for the effective implementation of rooftop solar initiatives. This holistic approach shows the government’s commitment to promoting clean energy solutions and ensuring energy security for all citizens.
