Install solar panel at home, get Rs 1.17 lakh: GoI

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You can get up to Rs 1.17 lakh if you install solar panels at your home. The government gives money to citizens if they choose to light up their home with solar energy. You will receive the money in the form of subsidies from the government. It will be directly credited to your bank account within 30 days of installation of residential solar rooftop system at your home.

Now let’s see how much solar panels cost?

Generally, four solar panels are enough to produce 1 kilo Watt hour (kWh) of solar energy. It suffices for lighting up of 2BHK. According to the official website of Renewable Energy Ministry, installation of residential solar rooftop system of 1kWh of power capacity in a household currently costs Rs 47,000.

The government currently gives Rs 18,000 subsidy to the home owners on installation of residential solar rooftop system of 1 kW of power capacity. Now, the GoI provides Rs 18,000 subsidy on every 1 kW power. But the government provides Rs 18,000 subsidy on every 1 kW of power only on first 3 kW. After that, government would provide only Rs 9,000 subsidy on every additional kW of power.

Subsidies are only allowed on solar power system of maximum of 10 kW of power capacity.

So, you can get maximum of Rs 1.17 lakh subsidy for installation of residential solar rooftop system with power capacity of 10 kW.

Calculation: Rs 18,000*3 = Rs 54,000

Rs 9,000*7 = Rs 63,000

Total Subsidy = Rs (54,000 + 63,000) = Rs 1.17 lakh

Upfront, you will have to pay entire Rs 47,000 for installation of the system of 1 kW of power capacity in your home. But, within 30 days, the GoI will remit Rs 18,000 directly into your bank account. So, you will only have to spend Rs (47,000-18,000) = Rs 29,000 for installation of solar power system of 1 kW power capacity.

If you have a bigger house, then, you may need solar power system of higher power capacity. You may need solar system with 10 kW power capacity.

Prime Minister Narendra Modi announced on Monday, January 22, 2024, that, the government will announce a scheme for installation of solar rooftops at over one crore homes in the country. The scheme is named as ‘Pradhan Mantri Suryoday Yojna’. The GoI has not yet announced how much subsidy people will get under this scheme if they enroll in it. Whether, they will give more subsidy than the government is giving at present.