The Pradhan Mantri Suryoday Yojana, which was recently introduced by the union minister of new and renewable energy, will see an increase in government subsidies for rooftop solar installations to almost 60%. At present, rooftop solar installations subsidy are eligible for a 40% government subsidy. By making solar installations more accessible without requiring loans, the improved subsidy seeks to benefit customers with power usage below 300 units, who often belong to economically disadvantaged regions.
PM Surya Ghar: Muft Bijli Yojana
The new solar rooftop solution program was introduced by Finance Minister Nirmala Sitharam in the 2024–2025 budget. On February 15, 2024, PM Narendra Modi announced the PM Surya Ghar Muft Bijili Yojana.
Solar panels for homes are installed in the homes as part of this plan to provide alternative sources of electricity generation. Under this system, the installer will receive subsidies straight into their bank account from the central government. They will also be eligible for low-interest loans, and the installation will be free of charge. Solar panel installation won't cost more than 40% of what the government would compensate also The amount of the subsidy varies depending on the system capacity, type of installation (residential, commercial, or industrial), and project location.
By producing free electricity and selling extra units to electrical distribution companies, poor and middle-class households can save up to 15,000–18,000 a year. In India, the government wants to install one crore rooftop solar power systems. If this scheme works as planned, the government hopes to save some 75,000 crore on power bills annually.
Solar Subsidies in India
The solar subsidy rooftop program for residential households is detailed in the table below.
| Average usage of electricity | The solar rooftop plan's capacity | The government provides financial subsidies. |
| 0-150 | 1-2 kw | 30,000 to 60,000 |
| 150-300 | 2-3 kw | 60,000 to 78,000 |
| Above 300 | Above 3kw | 78,000 |
Eligibility and Criteria for Rooftop Solar Installation Subsidies
- Permanent citizen of India
- Over 18 years old
- Own a house
- Have all the necessary documents
- Annual income must be less than Rs 1 or 1.5 lakh
- Should Not be involved in government service
- The maximum capacity for availing of the subsidy is 10kW.
Consumers can pay a 20%–30% down payment to have solar panels installed in their homes or businesses. They must produce documentation of their income, such as:
- TR files for the last three years.
- The most recent electricity bill for the last six months.
- KYC documents.
Solar for Residential, Commercial, and Industrial Sector
Homeowners, residential societies, businesses, industries, and commercial establishments can avail of subsidies for the installation of rooftop or ground-mounted solar PV systems. For homeowners and residential societies, these subsidies typically support systems ranging from 1 kW to 10 kW, promoting the adoption of solar energy at the household level and reducing reliance on conventional power sources. For solar panels In the commercial and industrial sectors, the subsidy amount and capacity limits vary based on the specific scheme and industry sector, encouraging wider use of solar energy across various properties.
Subsidies Benefits
- This program offers many advantages and bonuses made for people with poor and middle incomes. Let's look at some of these benefits:
- Savings of between Rs. 15,000 and Rs. 18,000 crores a year from selling excess power to distribution firms so they can use it to charge electric cars
- Electric car charging
- Opportunities for many vendors to start their own businesses providing and installing rooftop solar panels
- Jobs for young people with technical abilities in solar panel production, installation, and maintenance
- Government electricity expenses are decreased.
- Higher usage of renewable energy sources.
- Decrease in the emissions of carbon.
Steps to Apply for Solar Subsidies
- Open your browser and go to the PM Surya Ghar Muft Bijli Yojana official website.
- Click the "Apply for Rooftop Solar" button located on the left-hand side of the website.
- After entering your district, state, and power Distribution Company along with your customer account number, click the next button.
- To finish the registration procedure, provide your phone number and email address.
- You can now use your cell phone and electricity customer number to log in to your newly formed account.
- As instructed on the form, click the rooftop solar scheme button.
- Wait for the DISCOM's approval of the feasibility after this. Once the feasibility approval is obtained, you can install the solar rooftop panel at any authorized distributor, such as Contendre.
- After the installation is finished, submit the plant's details and then apply for net metering.
- They will produce a commissioning certificate from the portal following the net meter's successful installation and the DISCOM's inspection.
- After receiving the commissioning certificate, log on to the website and provide your bank information along with a copy of your cancelled check. Within 30 days, the subsidy will be deposited into your bank account.
Expanding Adoption of Solar Energy in India
A crucial first step in reaching the nation's high goals for renewable energy and making the shift to a more sustainable energy future is the Indian government's pledge to subsidize solar power projects. These subsidies for installing solar panels may speed up the adoption of solar energy across many industries by lowering the upfront costs and increasing accessibility to solar electricity. To guarantee their efficacy and compatibility with changing market circumstances and technology breakthroughs, these subsidy programs must be constantly assessed and improved. Furthermore, optimizing the effectiveness of these programs would require tackling issues like expediting application procedures, guaranteeing the transparent and effective distribution of funding, and raising awareness among prospective recipients.
Without a doubt, solar power will be crucial as India works to both mitigate the consequences of climate change and fulfil its expanding energy needs. A powerful indication of the nation's commitment to adopting sustainable energy solutions and clearing the path for a more independent and environmentally friendly future is the government's pledge to subsidize solar panel installations. Leading solar PV system manufacturer and supplier of sustainable energy solutions, Contendre Solar has spearheaded India's solar revolution. Contendre Solar has been actively promoting innovation, quality, and sustainability, which has led to the expansion of the solar business in Maharashtra, India. Contendre Solar enables people, organizations, and communities to harness the power of the sun and embrace a greener, more sustainable future by providing state-of-the-art solar modules. Contendre Solar is a reliable partner in the solar ecosystem that is essential to accelerating India's shift to a renewable energy future while also supporting government initiatives.
