Rooftop solar can cut your monthly power bill and help you use clean energy at home. A new government scheme aims to make solar systems more affordable by offering support of up to 50% for eligible consumers.
The scheme covers homes and several other users. However, the final subsidy depends on the approved system size, the MNRE benchmark cost and the rules set by the local electricity department. This means the subsidy may not equal half of the amount on your final bill. A little checking before installation can save you from a large surprise later.
Who can apply for the rooftop solar subsidy?
Domestic electricity consumers can apply for a solar system from 1 kilowatt to 10 kilowatts. The scheme provides financial help of up to 50% of the eligible cost. The calculation will use the benchmark cost fixed by the Ministry of New and Renewable Energy, or MNRE.
For example, if a vendor quotes a price above the MNRE benchmark, the subsidy may not cover 50% of the full quote. Ask the vendor for a clear cost sheet that shows the system price, installation charges, taxes, meter charges and the expected subsidy.
Societies, schools and businesses may also benefit
The scheme is not limited to private homes. Housing societies, schools, colleges, shops, industries and NGOs may also apply. These users can get support for solar systems of up to 90 kilowatts, subject to the scheme rules and approval from the electricity department.
Large buildings can use solar power during the day for lights, fans, computers, pumps and other equipment. A society may also use the system for common areas such as lifts, corridors and parking spaces. In some cases, this can reduce the common electricity bill paid by residents.
How net metering works
The solar system will connect to the electricity grid through a suitable meter. This arrangement is called net metering. Your panels first supply power to your home or building. If they produce more power than you use, the extra electricity can go to the grid.
The meter records the power sent to and taken from the grid. This can reduce the amount shown on your electricity bill, based on the state electricity rules. Solar output changes with the weather, so you may still need grid power at night or on cloudy days. Solar panels cannot promise sunshine on demand, though they do a fair job when the sun turns up.
Key conditions to check before applying
- You must have a permanent Consumer Account, or CA, number issued by the electricity department.
- The solar system must meet the approved size limit for your consumer category.
- The panels and solar cells must be made in India, as required under the scheme.
- The installation must use an approved vendor and follow the technical rules of the local DISCOM.
- Net metering and grid connection must receive approval from the electricity department.
Check these points before paying an advance. A low quote is not useful if the vendor cannot complete the required approval or uses equipment that does not qualify for the subsidy.
Application process for rooftop solar
- Keep your latest electricity bill and CA number ready.
- Apply through the official rooftop solar portal or the website of your state DISCOM.
- Select an approved solar vendor from the available list.
- Choose the system size after checking your monthly power use and available roof space.
- Wait for the required technical approval before installation, if your DISCOM asks for it.
- Get the system installed with eligible panels, cells, inverter and safety equipment.
- Complete the inspection, meter change or net meter approval process.
- Submit the required documents for subsidy release through the official process.
The exact documents can differ by state. Common documents include the electricity bill, identity proof, bank details, roof ownership or permission papers and installation records. Keep copies of the invoice, warranty and commissioning report. These papers can help if the subsidy or meter process takes longer than expected.
How much solar capacity does a home need?
The right size depends on your power use, roof area and budget. A home that uses power for lights, fans and a television may need less capacity than a home with air conditioners, a water pump and an electric vehicle.
Ask the vendor to review at least 12 months of electricity bills. Also check whether the roof gets shade from trees, nearby buildings or water tanks. Even a small shadow can affect panel output. The roof should have enough space for safe installation and future maintenance.
Questions to ask the solar vendor
- Is the vendor approved by the local DISCOM?
- Are the panels and cells made in India and eligible under the scheme?
- Does the quote include installation, wiring, earthing, safety devices and meter work?
- What warranty covers the panels, inverter and workmanship?
- Who will handle inspection, net metering and subsidy paperwork?
- What happens if the system produces less power than estimated?
Read the quote before signing it. The subsidy is based on approved rules, not on a friendly promise made beside a cup of tea. Keep the CA number, application number and vendor receipts safe until the full process is complete.
