When talking about solar energy, the cost of a solar system
is discussed before the plan for subsidising solar panels. Let's look at the
present status of the solar subsidy programme and process in each Indian state.
As I started to put this material together, I finished my own research and
talked to a number of solar industry professionals. I couldn't locate the
following details:
What exactly does the term "Solar
Subsidy" mean?
As is commonly known, solar energy is cost-free, clean, and
less dependent on other natural resources like coal and water. The government
wants to put solar panels on every building so that each home can generate its
own energy.
Why does the government fund solar
energy?
India had set a goal of installing 40GW worth of solar
panels on residential structures, but as of 2021, it had only installed 5GW.
The Indian government has set a goal of installing 280GW worth of solar panels
by 2030, or 10GW annually. The government has launched new initiatives to
encourage the installation of solar panels at houses, such as allowing any
client to have solar panels installed by any solar dealer, distributor, or
corporation, and having them provide a photo of the completed installation to
the local electricity board.
Subsidy Advantages
There are three parties are involved in the procedure: 1.
Customers, 2. Channel Partners, and 3. DISCOMS (Distribution Licensee).
Customers
Commercial and industrial sectors are not eligible for the
subsidy; it is only accessible for residential homes (individual homes and
large apartments). Only grid-connected solar systems (excluding battery
systems) are eligible for a solar subsidy. The financial support encourages
consumers to invest because installing a solar system requires a significant
financial outlay and relieves some of their burden.
Only through the state DISCOM may homeowners install solar
systems and apply for subsidies. The nearest channel partner will be
registered, and client information will be shared. Here, you can discover the
DISCOMS for every state.
The solar installation provider will offer a 5-year
performance warranty if you install a solar system using a subsidy programme.
After that, you are responsible for maintaining your solar system on your own.
Commercial and industrial customers are not eligible for
this subsidy since they can take advantage of other perks including accelerated
depreciation, tax holidays, and excise duty exemptions.
Channel Partners
A wider customer base and greater business are advantageous
to channel partners. Even though the average individual wants the subsidy very
much, it is challenging for him to understand the procedures for receiving it.
The channel partner enters the picture at this point. He makes an effort to
collaborate with the client and the relevant government agencies in order to
hasten the client's eligibility for a subsidy.
Demands for power consumption in the residential sector
decline, allowing them to provide more in the commercial sector. We are aware
that commercial spaces require more electricity than do homes.
The average cost per kilowatt in India for installing a
solar system with the most recent technology is Rs. 60,000, though prices vary
slightly from state to state. This is the average price, without subsidies, for
a product, installation, and service during a five-year period with a net
metering facility.
People can install solar rooftop systems thanks to incentive
programmes offered by the federal and state governments. States in broad
categories receive a 30% grant from the federal government for these systems.
The central government provides subsidies of up to 70% for special states like
Uttarakhand, Sikkim, Himachal Pradesh, Jammu & Kashmir, and Lakshadweep.
The typical cost of installing a rooftop PV system without a
subsidy should be between Rs. 60,000 and 70,000. The consumer must produce
between 1100 and 1500 kWh annually in order to qualify for the generation-based
incentive.