New Solar Subsidy for Residences

Residential Solar: New and Improved Subsidy Guide 2024

One of the key initiatives by MNRE is the subsidy program for rooftop solar installations, aimed at encouraging individuals to embrace clean and renewable energy sources. In this article, we will explore the advantages of subsidies specifically in Chennai & Tamilnadu, considering that our head-office is located in this city. Chennai, the vibrant capital of Tamil Nadu, basks in abundant sunshine, making it a prime candidate for harnessing solar energy. The solar panel prices worldwide have decreased so much that solar power is now much more attractive compared to Grid or TANGEDCO electricity. Moreover, to encourage residents further to tap into this clean and sustainable power source, the government offers attractive subsidies on rooftop solar installations. By harnessing the power of residential solar subsidies, Chennai residents can contribute to a greener future while enjoying significant savings on their electricity bills.

Let’s dive straight into the current scenario (as on Mar 2024). Following are some of the details announced by the Government of India in recent months applicale for residences. More details are awaited in the form of Government-circulars and Government-Orders (GOs). Keep watching this article for the same.

Government Incentives

• Subsidy: ₹30,000/kW for 1KW, ₹60,000 for 2KW and ₹78,000 for 3 kW. Above 3KW, the subsidy is capped at ₹78,000.
• Eligibility: Open to residences with clear ownership of the house and the EB connection.
• Conditions & Restrictions: Residents can select from any of the enlisted solar providers and install the systems. There is a restriction that the solar panels should be DCR only (Domestic-Content-Requirement). The solar power system should follow the MNRE guidelines (Ministry for New & Renewable Energy). Ongrid or Grid-tied systems are included in this scheme.

Benefits

Residents in Chennai can enjoy huge cost reductions by availing this subsidy. Especially after the TANGEDCO electricity tariff hike, solar power has become very attractive for residents. Even without subsidy, Ongrid solar is an attractive investment for Chennai residents. Subsidy and recent subsidy increase, makes solar even more attractive. For instance, a 3 kW system could qualify for a subsidy of around ₹78,000, bringing down the upfront investment substantially. This is quite attractive as the payback period (time taken for the solar investment to equal savings) reduces much below 4 years. With solar panel performance warranty up to 25-30 years, solar becomes one of the most-profitable investments. Note that this article covers Ongrid systems which are considered in MNRE’s Subsidy program. Solar systems with battery-bank (which are not covered in Subsidy scheme) offer more benefits at higher investment.

Recent Developments and Considerations:

• Higher subsidy: In the recent months, the subsidy is increased from ₹14,500/KW to ₹18,000/KW and now to ₹30,000/KW.
• Streamlined Process: This subsidy is directly credited to the beneficiary’s account. The direct credit system for the subsidy has simplified the application process in the recent times making it very user-friendly.
• Potential Delays: In the past, there have been instances huge delays in subsidy disbursement. But, in recent times, the disbursement is fast-tracked. It’s crucial to stay updated on the current situation.
• Technical Feasibility: Before applying for subsidy, ensure your rooftop has sufficient sunlight exposure and structural strength to accommodate the panels. Contact the solar provider for technical feasibility and good proposal/solution for your needs.

Taking the Next Step:

Interested homeowners can call +91 – 9500167027/ 8431458404 for Jeevaditya’s subsidized solar systems.

Make the roof earn money !

Let the Sun power our lives