Go to the previous page
All posts
Businesses
5 min read

Understanding Solar Subsidy in Gujarat

Published on
November 23, 2024
Author
Subscribe to newsletter
By subscribing you agree to with our Privacy Policy.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Share this post

Gujarat has always been at the forefront of India's solar adoption journey. The residents of Gujarat understood quite early on how wise an investment in solar could be. Currently, Gujarat leads the solar adoption with a total 14.5gigawatts of installed solar capacity. As of October 2024, Gujarat leads the States in terms of installed rooftop solar capacity under the PM Surya Ghar Muft Bijli scheme with 4337.25 MW, followed by Maharashtra at 2651.81MW, and Rajasthan at 1294.57 MW.

Gujarat owes the success of solar penetration to the Surya Gujarat scheme that gave subsidies of up to 40% for systems up to 3 kW from2019-2022. As of today, Residents in Gujarat can avail the subsidy from PM Surya Ghar Muft Bijli scheme led by the central government.

Subsidy details

The Government of India approved the PM Surya Ghar: Muft Bijli Yojana on 29th February 2024 to increase the share of solar rooftop capacity and empower residential households to generate their own electricity. The scheme has an outlay of Rs 75,021 crore and is to be implemented till FY 2026-27.

Note: The subsidy can be availed for solar rooftop installations only by residential consumers and housing societies and not by any commercial establishment.

Let us see, the overall benefits from the Subsidy:

Solar Rooftop Capacity

Price as per MNRE Benchmark

Central Government

Subsidy

Cost after Subsidy

1 kW

₹ 50,000/kW

₹. 30,000/-

 

₹. 20,000/-

2 kW

₹ 1,00,000/kW

₹. 48,000/-

₹. 52,000/-

3 kW

or above

₹. 1,45,000/kW

₹.78,000/-

₹. 67,000/-

up to 500 kWp (For RWA and group housing societies)

-

₹. 18,000 per kW for common facilities, including EV charging, up to 500 kW capacity (@3 kW per house) with the upper limit being inclusive of individual rooftop plants installed by individual residents in the GHS/RWA

-

For Group Housing Societies (GHS) /Residential Welfare Associations (RWA), the upper limit of subsidy -supported Rooftop solar capacity is inclusive of individual rooftop plants installed by individual residents in the GHS/RWA. The GHS/RWA connection eligible under the scheme shall be dedicated only to common facilities like common lighting, water pumps, etc.

Eligibility

  • Indian citizenship
  • Own a house with a roof suitable for installing solar panels
  • Valid electricity connection.
  • Has Not availed solar subsidy before.
  • The solar system installation must be done through an empaneled vendor.
  • The solar system should be an On-Grid system.

For housing societies and residential welfare associations (RWAs)

  • Society registration papers and proof of ownership.
  • Identification and verification of the residing members.
  • Address verification.
  •  Electricity bills of all flats.
  • Architectural plans of the property.
  • Installation agreements with the empaneled solar vendors.

Eligibility of the type of installations

Subsidy is applicable only if the grid-connected solar plant is installed on a roof/terrace/balcony/elevated structure.

  1. The subsidy will be calculated considering the DC capacity of the plant which depends on the rating and number of solar panels and not on the size of the inverter.
  2. Solar panels used in the installation must satisfy the Domestic Content Requirement condition i.e., domestically manufactured modules manufactured from domestically manufactured cells i.e. they should be “Made in India”, in order to avail subsidy.
  3. A rooftop solar installation shall be eligible for subsidy only once after installation. If an already installed rooftop solar is shifted/relocated to a new location, such a system shall not be eligible for subsidy under the scheme.

How to Apply

Step: 1

Register in the portal https://www.pmsuryaghar.gov.in/consumerLogin with the following:

  • Select your State &Electricity Distribution Company (say DGVCL/UGVCL/MGVCL/PGVCL/Torrent)  
  • Enter your Electricity Consumer Number, Mobile Number & Email

The portal will assign the application with a unique application ID.

Step: 2

  • Login with your Consumer Number & Mobile Number and enter the OTP received on your mobile number.
  • Apply for the Rooftop solar by entering your category as residential and then enter the capacity of the planned solar rooftop plant. You will also need to enter the coordinates (Latitude and Longitude) of your house. You can check your coordinates in the following steps:
  1. Turn On Location on your mobile phone while being in the house.
  2. Go to Google Maps.
  3. Long press on the blue dot (current location) visible on the screen
  4. Scroll down and you will find the house coordinates
  • Upload your electricity bill in the next step.
  • Enter your bank details and upload either cancelled cheque/Bank Passbook copy/Bank E-Statement/Group Bank Account.
  • Ensure the name on the bank details and the electricity bill is the same.

Step: 3  

  • If the rooftop solar plant is less than 10kW, then the feasibility is auto approved.
  • If the rooftop solar plant is >10kW, then the DISCOM will approve the feasibility within 15 days of registration.
  • Once you get the feasibility approval, get the plant installed by any of the registered vendors in your DISCOM
  • Choose a vendor from the empaneled vendor list on the website.
  • Once the vendor is selected, the vendor can fill in the project details in the portal.

Step: 4

  • Once installation is completed submit the plant details and apply for a net meter.
  • GPS Tagged Photographs of the Pre-Installation Site and Completed Installation: The photos of Pre-Installation Site and installed RTS along with geo-coordinates shall be uploaded on the National Portal.
  • In this case, your vendor can also log in and fill in the necessary details as per the guidelines.

Step: 5

  • Meter Installation and Agreement: Once the installation is complete and a metering agreement is signed between you and the DISCOM which must be uploaded on the Portal, the net- meter shall be installed.
  • The subsidy will be processed only after the DISCOM has physically verified the system, the appropriate agreements have been signed, and the system has been commissioned by the installer after all due approvals of the DISCOM.
  • A Commissioning certificate will be generated from the portal, after the installation of the net meter and inspection by DISCOM. DISCOM Report (DR): The DR will be filled by the DISCOM representative and generated through the National Portal digitally.

Step: 6

  • Once you get the commissioning report. Click on the redeem option in the portal. You will receive your subsidy in your bank account within 30 days.
  • Bank Account Details: All consumer details including bank account information and a cancelled cheque image/bank e-statement file/passbook scan or any other electronic document certifying that the bank account number is held by the concerned consumer must be submitted on the National Portal by the consumer. The NPIA shall verify the account information submitted.

Disbursement of subsidy

  • As a consumer, you will be required to pay the full cost of the system initially and the subsidy will be credited to their bank account via Direct Benefit Transfer from the government.
  • The release of the subsidy shall be operationalized through an e-token.
  • After the necessary documents have been uploaded and inspection by the DISCOM (say DGVCL/UGVCL/MGVCL/PGVCL/Torrent) has been completed, the national program me implementation agency (NPIA) will assess the documents and approve the release of subsidy through the e-token, which will be activated with the eligible subsidy.
  • You can redeem the e-token on the portal, resulting in transfer of CFA/subsidy to your bank account within 15 days of approval by the concerned DISCOM.

Solar Loan

  • In case you have opted for a loan to finance the rooftop solar installation, your profile shall also include the loan account details. On redemption of the e-token in such cases, the subsidy will be transferred to the loan account. If the subsidy exceeds the loan amount drawn, the excess amount will be disbursed to your bank account.

Financing Support

Also, if upfront investment is a barrier towards your solar journey, loans, and financing solutions can also be availed through companies like Aerem.

At Aerem, you can apply for loan through the Aerem app which offers loans

  • Up to 90% of project cost
  • 5-year tenure and collateral free
  • Attractive Interest Rates
  • Disbursement within 12 hours
  • Loan tracking on the Aerem App

The entire process is digital through the Aerem app providing a hassle-free loan application. Aerem is also the only RBI-licensed solar-focused NBFC in India doing business with Aerem absolutely trustworthy, reliable, and dependable. Also, with the Aerem app you can track the progress of the solar installation digitally.

Financing your rooftop solar plant can reduce the burden of upfront cost and you can start saving immediately with the installation of the plant. Since the loans are collateral free and the loan is disbursed within hours, it makes adoption of solar rooftop very easy.

Savings expected

Parameter

Unit

Value

Capacity

kWp

2

Cost per kWp (Tentative)

50,000

Cost of system

1,00,000

Total Subsidy (Central)

78,000

Net Cost of the system

22,000

Units’ generation per month

kWh

228

Average unit cost

4

Savings from Electricity monthly

912

Payback (Tentative)

Year

2.01

Life of Plant

Year

25

Conclusion

Thanks to the Solar Rooftop National Rooftop portal, claiming subsidies has never been simpler. These subsidies are directly transferred to the consumer's bank account, making the installation of rooftop solar plants much more affordable and accessible.

With the availability of various subsidy and financing options, investing in solar energy is not just a smart financial decision, but also a positive contribution towards the environment.

Blog

Our latest blogs

Businesses

Rooftop Solar vs. Stock Market Investments: A Risk and Return Analysis

Does a Rooftop Solar plant give as great returns as the stock market? Is it safer or riskier than the stock market? Can anyone invest in solar just like the stock market?
SolarTech

Monitoring & Maintenance Why Both are Critical for Solar Performance?

The reason being monitoring is like the pre-requisite to a subject or a topic you are studying. If monitoring is performed well, maintenance becomes much easier and more efficient. Let’s dive in to understand how monitoring is performed in the case of rooftop solar plants.
Businesses

Understanding Solar Subsidy in Gujarat

The Government of India approved the PM Surya Ghar: Muft Bijli Yojana on 29th February 2024 to increase the share of solar rooftop capacity and empower residential households to generate their own electricity. The scheme has..
Businesses

Understanding Solar Subsidy in UP

The Government of India approved the PM Surya Ghar: Muft Bijli Yojana on 29th February, 2024 to increase the share of solar rooftop capacity and empower residential households to generate their own electricity. The scheme has...
Residential

1 kW Rooftop Solar Plant Price in India, 2024

A 1-kW solar rooftop plant is the minimum size of solar plant that can be installed under Net Metering. 1kW is usually sufficient for an average household and where the rooftop area is also limited. To install a 1-kW system, you will need less than...
Residential

5kW Rooftop Solar Plant Price in India, 2024

A 5-kW Rooftop Solar is typically suitable for larger houses or small commercial units that have multiple air conditioners and other heavy appliances, or for small commercial spaces. To install...
Solar Installers

Understanding Rooftop Solar Mounting Structures: Types and Applications

Designing a solar power plant involves several important physical considerations, such as....
Residential

How to Integrate Aesthetic and Functional Aspects in Rooftop Solar Plant Design

A solar plant is definitely a money-saving and environment-friendly asset, but have you thought of integrating it with your building design?
Solar Installers

The Role of Software Tools in Solar Plant Design: An Overview

Designing a solar power plant may not necessarily require software, but one thing is for sure, anything that can be done through computers and its software makes the process quick and efficient. Just like......
Solar Installers

Maximizing Efficiency in Rooftop Solar Plant Design: Best Practices and Tips Understanding Orientation, Tilt, and Shadow Analysis

India is a tropical country blessed with abundant sunlight. So much so that nearly bout 5,000 trillion kWh per year of energy is incident over India’s land..
Businesses

Different types of solar installation models and why Capex is the best for MSMEs

While opting for solar, the type of financing model impacts various aspects, including project ownership, required investment, operations and maintenance, and expected returns for stakeholders. Therefore...
Businesses

How Aerem is Empowering MSMEs with Solar Adoption

Our all-encompassing solution guarantees a seamless transition to clean energy, facilitated by a fully digital and transparent process via...
Solar Installers

How Aerem is Empowering Solar EPCs With Comprehensive Solar Services

From offering collateral-free solar loans that make installations more accessible to providing a seamless procurement experience through SunStore, Aerem supports every aspect of your business. Our supply chain finance options ...
Businesses

10 Reasons for MSMEs to Install Rooftop Solar

adopting solar energy is not just an environmentally responsible choice; it is a strategic decision that can significantly benefit MSMEs in India. From reducing electricity bills and operational costs....
Businesses

Aerem Solar Loan: Everything You Need to Know

With Aerem Solar Loans, MSMEs, homeowners, and various other entities can overcome the financial barriers typically associated with solar installations. Our tailored financing solutions, strong industry partnerships,...
Businesses

5 Reasons to go for a Solar Loan

The most prominent barrier that we see among businesses is the availability of capital to install solar rooftop. But times have changed and with flexible solar loan or solar financing options ...
Businesses

How to evaluate solar rooftop EPC quotations

It's essential to select the right EPC Company with relevant experience. An experienced EPC Company has likely learned from previous installations, ensuring quality workmanship without unnecessary costs to you.
SolarTech

Your Rooftop Solar Glossary

Welcome to the Rooftop Solar Glossary, your ultimate resource for understanding the world of rooftop solar energy. Whether you're a homeowner, business owner, or solar enthusiast, our comprehensive glossary is designed to demystify the terminology and concepts related to rooftop solar installations.
SolarTech

How to make your Solar Rooftop plant Monsoon ready?

Do solar plants work in rainy seasons? This is a common question that people ask before installing solar. The answer to this is “Yes”...
Residential

Understanding Solar Loan Interest Rates: Reducing vs. Flat

Understanding the difference between flat and reducing interest rates can have a substantial impact on your financial decisions. By choosing the right ...
Businesses

Reducing Scope 2 Emissions Made Easy With Rooftops Solar

With the rising temperatures and effects of climate change, it has become more and more apparent for companies to measure and reduce their emissions. Reducing emissions...
SolarTech

Essential Guide: Understanding the Components of Your Solar Power Plant

The blog "Essential Guide: Understanding the Components of Your Solar Power Plant" provides a detailed overview of solar power plant components, emphasizing the importance of each part for optimal performance.
Businesses

Guide: How To Estimate Required Solar Installation Capacity?

The blog guides small business owners on estimating the solar capacity needed for their properties. It covers three steps: calculating average electricity usage, measuring available roof space, and checking the sanctioned load.
Businesses

Boost Solar Efficiency: Optimize PR & CUF for Peak Performance

Unlock the full potential of your solar installations with our expert guide on improving Performance Ratio (PR) and Capacity Utilization Factor (CUF). Discover actionable strategies for maximizing solar energy efficiency today.

Realise your solar potential with Aerem

We understand the unique challenges that India faces when it comes to adopting solar. Our platform is tailored to propel your business with the power of solar, setting the stage for unparalleled growth. Dive into tools, financing and SaaS systems that echo your ambitions