How Grid Connected Solar Rooftop Programme is Beneficial for You?

Over the last few years, people’s inclination towards solar energy has been rising and the government has introduced various measures to take benefit of this opportunity. By installing solar panels on the roof of their houses, people can not only generate electricity for their needs but can also sell it through the grid and earn extra income.

The government has launched a grid-connected rooftop solar program to achieve a total capacity of 40 GW by 2022 through rooftop solar (RTS) projects. Further, the government is also focusing on clean energy sources to reduce carbon emissions.

Under phase 2 of the rooftop solar program, launched in 2019, the central government is providing Central Financial Assistance (CFA) for the residential sector only. In phase 2, the distribution companies have also been included who deal with consumers on a daily basis.

➠ Central Financial Assistance (CF A) only for the residential sector is provided @ 40 % of the benchmark cost or the cost discovered through the transparent bidding by the implementing agency, whichever is lower for rooftop systems up to 3 kW capacity.

➠ For system capacity beyond 3 kW and up to 10 kW CFA is provided at 20 % of benchmark cost or the cost discovered through transparent bidding.

➠ For Group Housing Societies/Residential Welfare Associations (GHS/RA W), CFA will be limited to 20% for RTS plants for supply of power to common facilities.

➠However, the capacity eligible for CF A for GHS/RAW will be limited to 10 kW per house with maximum total capacity up to 500 kWp, inclusive of RTS put in individual houses in the GHS/R WA.

Apart from the Centre, state governments also have their respective schemes.

The main purpose of installing a solar power panel on a rooftop is to save. You save the money spent on the electricity bill. The government plans that people take less electricity from DISCOMS and save money through solar power panels.

For example, By installing a 1 kW solar panel you can generate about 120 units of electricity every month. While by installing a 3 kW solar panel, you can generate 360 ​​units of electricity every month. At Rs.7 per unit, this will be around Rs.2,520 a month. In the same way, if you install a 5 kW solar panel, you can save around Rs.5,000 a month.

Cost and Financing Options

The cost for installing a 1 kW grid-connected rooftop solar system is around Rs.40,000 while for 3 kW it is Rs.1, 20,000. Out of this, 40% subsidy is provided by the government and the remaining amount can be borrowed from banks. Banks are also providing loans in easy instalments.

You have to get a license from the local electricity company and sign a power purchase agreement with the power company if you want to install a solar power panel on a large scale.

Last year, the government amended the metering and billing rules for rooftop solar power panels up to 10 kW and brought them under net metering. Consumers will also benefit from this new provision in metering and billing rules.