Solar power is becoming a complementary option for Indian households with rising electricity costs and a growing demand for sustainable energy solutions. The initial investment that a solar rooftop system requires may act as a barrier for many homeowners. In response to this demand, the PM Surya Ghar Muft Bijli Yojana has been implemented to make solar energy affordable and accessible for millions of families across India.
By government subsidies, easy loans, and net metering benefits, one can install solar rooftops up to 3 kW. This scheme is intended to enable households to install their electricity, reduce their dependency on the grid, and avoid the burden of electricity bills. A 3-kW solar rooftop is, therefore, ideal for small- to medium-sized homes, its generation being sufficient to power essential appliances while saving costs in the long run.
PM Surya Ghar Solar Rooftop Scheme provides financial assistance to qualifying households in the installation of solar rooftops as an aid toward incurring some costs of installation. Therefore, banks and financial institutions have mostly lucrative financing programs for solar rooftop systems with a rating of fewer than 3 kW that ease householders to clean and renewable energy.
In this article, different financing provisions existing during the installation of a solar rooftop of up to 3kW under the PM Surya Ghar Muft Bijli Yojana will be described. Subsidies, bank loans, and other incentives will be discussed to help you make a more informed decision regarding your switch to solar energy. Suppose you are considering a solar rooftop system. In that case, this guide will provide you with all the vital details concerning affordable financing options along with the benefits under the PM Surya Ghar Solar Rooftop Scheme.
Understanding PM Surya Ghar Muft Bijli Yojana
The PM Surya Ghar Muft Bijli Yojana is an effort to promote solar energy production in Indian households and to make it available and affordable. The scheme would provide financial aid, subsidies, and incentives to homeowners for installing home rooftop systems, which results in lower electricity bills and increases energy independence. With the support of this scheme, India truly endeavors to harness renewable energy, reducing the dependence on conventional power sources and promoting environmental sustainability in the cold valued standards.
Basic Features of PM Surya Ghar Muft Bijli Yojana
1. Government Subsidy on Solar Installation Incentive on Home Solar
The government provides an incentive to make solar affordable for its citizens through subsidies for rooftop solar panels installed by homeowners. The rate for subsidization is: Up to 3kW System – 40% subsidy on total system cost. Between 3kW and 10kW: 20% subsidy on additional capacity beyond 3kW. Above 10kW: No subsidy for extra capacity, but the subsidy applies to the first 10kW. For example, if a homeowner spends ₹1,50,000 for installing a rooftop solar system of 3kW, they will get a 40% subsidy of ₹60,000, making their expense only ₹90,000.
2. Low-Cost Loans to Ease Financing
Realizing that the treatment of high initial costs is a serious point for the majority of households, the government has linked up with banks and other financial institutions to offer low-interest financing. This makes it easy for people interested in solar energy to pay and be free without a much larger settlement outside what they save on their electricity bills toward repayment.
3. Net Metering: Earn by Selling Excess Power
The main part of installing a rooftop solar system under this scheme is that the system has net metering. If the household generates more energy than it consumes, the excess gets exported to the electricity grid. In this, homeowners get compensated or receive credits for reducing future bills. Households won’t just save but will also earn by using solar energy production.
4. High savings on electric bills in the longer run
Installing a solar rooftop system results in very high savings in terms of finances. For example, A 3kW system can save a homeowner up to ₹24,000 per year in electricity costs. Translated over 25 years, this comes to more than ₹6 lakh toward high returns. Investment in solar panels is supposed to last more than 25 years; therefore, once the cost is borne, free electricity is enjoyed by the household.
5. Environmental and Sustainability Benefits
The PM Surya Ghar Muft Bijli Yojana promotes clean and renewable energy, leading to no dependence on coal, oil, and other fossil fuels. These benefits are as follows: Low carbon emissions with little air pollution depend mostly on renewable sources. Less dependence on non-renewable energy sources will reduce pressure on the power grid. Promoting green energy uptake will thus lead to India meeting its climate goals and commitments towards sustainable development.
6. Simple and Hassle-Free Installation Process
To ensure widespread adoption, the government has made the installation process smooth and easy:
- Online Registration: Homeowners can apply through the official solar rooftop portal.
- Subsidy Approval: The application is reviewed, and subsidies are sanctioned.
- Installation Process: Homeowners can choose from government-approved vendors.
- Net Metering Setup: The local DISCOM (electricity distribution company) installs a net meter, allowing the household to receive credits for excess power generated.
Eligibility Criteria
To benefit from the PM Surya Ghar Muft Bijli Yojana, a homeowner must:
- Be a resident of India.
- Own a residential property with a rooftop suitable for solar panel installation.
- Use approved solar panels and equipment under the scheme.
- Apply via the government’s official solar rooftop portal.
The essential thing to note in selecting a 3kW solar rooftop system:
A 3kW solar rooftop system is the ideal solution for the consumer who would like to save money on electricity bills, wishes to gain energy independence, and desires to be part of sustainability. Here are the reasons:
1. Huge Electricity Bill Savings
- It is generating 12-15 units a day, more than half of what a household would require for its electrical needs.
- This reduces dependence on the grid and saves up to ₹24,000 every year.
2. Make it Cheap with Government Support
- Subsidy rates are at 40% under PM Surya Ghar Muft Bijli Yojana to reduce the initial capital cost.
- Also offers low-interest finance loans for easy borrowing.
3. Quick Return of Investment (ROI)
- The investment can be recouped in 4 to 5 years.
- While solar panels have a lifetime exceeding 25 years, they would assure long-term savings.
4. Net Metering Benefits
- This ensures the sell-back of extra production of electricity to the grid to earn some extra money on savings.
5. Sustainability & Energy Independence
- Cleans the air around with a smaller carbon footprint.
- Behind closed doors, as there are power failures, but there is a stable electricity supply.
6. Low Maintenance & Easy Installation
- Bring along a cleaning now and again, long guarantees for both.
- A 3 kW solar rooftop system provides smart, convenient, and, most importantly, green investment for Indian households.
Financing Options for Up to 3kW Solar Rooftop Installations
Homeowners can access the PM Surya Ghar Solar Rooftop scheme to bring down the 3kW solar panel installation costs through some government provisions. However, it entirely depends on the homeowner to make arrangements for financing the balance amount. The various financing means will help solve this investment.
1. Government Subsidies
The Government of India gives direct subsidies as an incentive for residential solar installation. The subsidies reduce the installation costs, thus making solar energy easily accessible for homeowners.
Subsidy Structure
- 3kW and below – 40% subsidy on the total cost of the system.
- From 3kW to 10kW- 20% subsidy on the additional capacity after 3kW.
- More than 10kW- Fixed subsidies for systems above 10 kilowatts, but there are no other benefits beyond this size.
Who is Eligible and the Process of Application
To claim the subsidy, homeowners will have to:
- Install government-approved solar panels – only panels mentioned in the scheme qualify for the subsidy.
- Follow the installation guidelines – installation has to adhere to the technical guidelines laid out by the government.
- Make an application on the official government portal or through authorized vendors.
- The subsidy reduces the financial burden on the homeowner, thereby making solar energy an economically viable solution.
2. Bank Loans & EMI Financing
For the consumers who cannot pay upfront, banks and financial institutions have offered solar loans with flexible payment options.
Salient Features of Solar Loans:
- Collateral-Free Loans- Banks generally offer loans without calling for any security or collateral.
- Low-Interest Rate- Solar loans are included under the Reserve Bank of India’s priority sector lending program for attaining higher viability.
- Flexible Repayment Terms- Loan repayment can be done through comfortable installments for a maximum period of 3-7 years.
- Other lending institutions: Besides banks, NBFCs and microfinance institutions are also flourishing with solar loans offering customized terms.
How to apply for a Solar Loan?
- Identify a bank or financial institution that offers solar loans.
- Obtain clarity around eligibility based on income, credit score, and other loan requirements.
- Prepare a set of necessary documents, which will include identity proof, address proof, and estimates of installation cost.
- Upon approval, draw a loan, and under the loan, contractors will install the solar panel system.
- With solar loans, homeowners can change to solar energy without feeling financially constrained.
3. Benefits of Net Metering
Net metering system that allows homeowners to sell excess energy produced by their solar panels into the grid. This helps in reducing energy costs and increases return on investment.
How does Net Metering work?
Electricity generated from solar panels is first used for household purposes. Any excess is sent to the grid and here, the consumer is credited on his electricity bill for the unit of power exported. In the months where the usage exceeds generation, the credits can be offset against the electricity costs.
Key Benefits of Net Metering
- Further reduces electricity charges since most of the unused power is potentially offset with credits from net metering.
- Reduces payback period – A 3kW solar rooftop system with net metering will cover the cost within 4 to 5 years. Encourages energy efficiency through increased self-consumption and contribution to the grid.
- Net metering enhances the financial viability of a solar rooftop system overall.
4. State-Level Incentives
Besides the subsidies at the national level, many state governments provide additional incentives for solar adoption. These vary from one state to another and can include:
Additional State Subsidies
- Some states give extra financial incentives on top of the national subsidy.
- The amount of and eligibility for subsidy depends on the policies of the concerned state government.
Property Tax Rebates
- Most states have some reductions in property tax for houses with solar installations.
- This turns out to be an added financial benefit for homeowners who convert to solar energy.
- Reduced Electricity Tariffs
- In some states, they offer reduced electricity service tariffs to domestic consumers of solar electricity.
- This reduces the cost of electricity in the long run.
How to avail state incentives?
- Please check with the State Electricity Board for knowing the incentives available in your state.
- Follow the application procedure as specified for your state to claim the additional benefit.
- Ensure adhering to the state guideline requirements for installing solar panels.
- State-level incentives make solar installations much more affordable and attractive for homeowners.
Step-by-Step Process to Avail Financing and Subsidy
PV Surya Ghar Solar Rooftop Scheme provides financial assistance to homeowners for the installation of solar panels, thus reducing the electricity bill while encouraging clean energy. Here is a detailed installation and subsidy application methodology to aid with the installation of solar rooftop systems.
1. Online Registration
The first step is to register and apply for the subsidy on the official government portal.
How to Do Registration?
- Visit the official portal: https://pmsuryaghar.gov.in.
- Click on “Apply for Solar Rooftop,” create an account.
- Select State and Electricity distribution company (DISCOM). For ‘Assam’ state, select Assam.
- Enter the name, address, electricity consumer number, and mobile number.
- Submit the registration form, waiting for the acceptance/approval from the DISCOM authority.
- You will get a unique registration number once registered to check your application status.
2. Select PV Vendor and Obtain Quotation
After registration, the next step is to choose an approved solar vendor and obtain a quotation for the solar rooftop system.
How to Select a Vendor?
- The portal has a list of government-approved vendors in your state. For example, Kailash Chandra & Sons is a government-approved vendor under Assam state.
- The vendor should be providing MNRE-certified solar panels and inverters.
- Request a detailed quote, mentioning system specification, total cost, and expected savings.
- Assure that the vendor would help with subsidy-related documentation and installation.
- The quote helps you understand your exact cost after the deduction of subsidy and plan your financing accordingly.
3. If Necessary, Apply For A Loan
In case you need financial help for the remaining cost after subsidy, apply for a loan for the solar system.
How to Get a Solar Loan?
Approach those banks and financial institutions that provide solar financing.
- Present the following documents:
- Identity proof (e.g., Aadhaar, PAN)
- Address proof
- Bank account details
- Show the vendor’s quotation for the solar system.
- Electricity bill
- Choose repayment tenure (3-7 years) based on affordability.
- Loan amount approval and disbursal include sending the amount directly to the vendor or into the borrower’s bank account.
- Loans make solar easier on the pocket for homeowners as EMIs in small amounts can be paid instead of a lump sum.
4. Installation of the Solar Rooftop System
Once the financing is arranged, the next step is to install the system.
Basic Guidelines for Installation
- Installation must adhere to government codes and safety standards.
- Use MNRE-approved solar panels and inverters.
- Maximize absorption of sunlight for generating power.
- Ensure proper wiring, grounding for safety and efficiency.
- Installation typically takes a few days under the monitoring of the vendor. 5. Inspection and Net Metering Setup
- Thereafter, inspection and verification of the solar system by authorities are carried out for connecting the system to the grid.
Inspection & verification process
- The local DISCOM authority sends someone to inspect the system.
- The inspection does check for:
- System specifications and panel quality
- Wiring and inverter functioning properly
- Compliance with government standards
- Once approved, installation of the net meter will happen for the monitoring of electricity consumption versus export into the grid.
Benefits of Net Metering
- Any extra electricity generated would rather go to the grid.
- A credit against electricity bills is given to the homeowner for surplus power supplied.
- This reduces one’s electricity bills and ensures maximum savings.
- These subsidies will be deposited in the homeowner’s bank account once the system is finally synced with the grid and solar energy is being harnessed by the homeowners.
6. Receive Subsidy in Your Bank Account
On successful installation and inspection, the subsidy amount will be deposited directly in your registered bank account.
Disbursement of Subsidy Explained
- The vendor submits an installation report to DISCOM and MNRE.
- When installation is verified by the government and compliance with scheme guidelines is confirmed.
- The subsidy amount will be credited within a couple of weeks directly into the homeowner’s bank account.
- Homeowners now need to reduce the total cost of installation by receiving the subsidy, making solar energy very affordable.
Conclusion: Secure Your Energy Future with Solar Power
The PM Surya Ghar: Muft Bijli Yojana provides an ideal platform for homeowners who wish to adopt solar energy with the necessary financial support from the government. A 3kW system installed on the roof will not only help an individual to save on electricity costs but will also forge a path toward a greener and sustainable future by reducing carbon emissions and establishing energy independence.
Installation is now very easy and cost-effective with government subsidies, low-interest financing, and the advantages of net metering. By investing in a solar rooftop system, you will save enough in electricity bills that you will be cushioned against rising power costs while earning savings over the next years, thereby creating a cleaner environment.
There is never a better time to go solar. Grab this opportunity and start utilizing the renewable source, your solar energy, for your house.
Get Started Today!
- Visit pmsuryaghar.gov.in to apply for your subsidy and start on your solar journey.
- Call Solar Prabha now at +91-7099030047 to discuss your options regarding installation and financing, and get an expert consultation customized to your needs.
- Solar Prabha provides you additional 2 years of warranty on solar rooftop up to 3kW.
So take your first step toward a bright sustainable future with solar energy!
