Residential solar energy systems are widely acknowledged and embraced by homeowners aiming to avoid hefty electricity expenses. The government of India also seeks to promote this clean, cost-effective, and renewable energy resource among its citizens by subsidizing the expenses associated with residential solar installations.
The Rooftop Solar Program Phase II scheme has seen significant changes since its inception, and the newly streamlined procedures aim to facilitate access to this financial aid for everyone. National Portal for Rooftop Solar enables users to quickly initiate their subsidy application process online. This subsidy system directly transfers the approved solar benefits into the consumer account based on the approval of your installed Rooftop Solar (RTS) system.
Solar Panel Subsidy in Madhya Pradesh
The MP government solar panel subsidy is provided under the Rooftop Solar Program Phase II scheme launched by the Ministry of New & Renewable Energy (MNRE). Central Financial Assistance (CFA)/Solar Subsidy Assistance can help subsidize the solar costs of your home.
However, the national solar subsidy scheme is exclusively available to residential property owners, institutions, and social sectors. This subsidy initiative is not accessible for commercial, industrial, and public sector enterprises seeking to install solar systems.
The newly introduced subsidy rates under the national simplified subsidy scheme offer a fixed amount for each kW of solar system capacity. These subsidy brackets for different system capacities are standardized across all states in India.
Rooftop Solar System Capacity | Applicable Subsidy (₹) |
1 kW | Rs. 30,000/- |
| 2 kW | Rs. 60,000/- |
| 3 kW and Above | Rs. 78,000/- Fixed* |
| Note: *The subsidy amount is fixed for rooftop solar systems with a capacity of 3kW and above. | |
Note: Your CFA/subsidy application will only be approved upon the clearance of your RTS and net metering system by the designated inspecting authority from your local DISCOM company. The net metering setup must be integrated into your solar power plant following the required procedure. All online subsidy applications submitted by December 31, 2024, via the national portal will be processed according to the existing subsidy scheme and rates only. No applications will be retroactively processed.
Calculation of CFA/ subsidy: The calculation for CFA/subsidy is based on your total solar system capacity or the maximum solar capacity approved by your local DISCOM, whichever is lower.
Learn More About: 1kW Solar System Price in India with Subsidy
How to Avail Solar System Subsidy in MP
In an effort to achieve the 4 GW residential solar installation target by 2024, the government of India has been providing solar panel subsidies in MP and other states exclusively for rooftop solar projects. The objective is to stimulate solar adoption among homeowners. Since the introduction of the streamlined national program, the subsidy application and distribution process has become quicker, simpler, and more transparent for users.
On July 30, 2022, Prime Minister Narendra Modi launched the National Portal for Rooftop Solar to endorse a unified National Subsidy Scheme across all states. The online portal has addressed various challenges that users encounter when trying to claim their eligible subsidy benefits.
This all-in-one platform accepts applications and allows solar-ready homeowners to begin the subsidy process online. This has replaced the outdated and cumbersome procedure that required beneficiaries to make multiple visits to the local DISCOM office and apply only through state-level subsidy programs (which will continue to operate alongside the National Subsidy Scheme). As a result, users now have greater control over their subsidy application at every stage, from form submission and documentation to inspection and disbursement of the subsidy amount.
Learn More About: 2kW Solar System Price in India With Subsidy
The portal encompasses all advanced features to ensure the transparent processing of rooftop solar subsidies in Madhya Pradesh and throughout India. Registered users will be able to track the status of their subsidy application online every step of the way. You can log in at your convenience to complete the application form, receive notifications upon receiving approvals (or rejections), and learn of your potential subsidy amount upon successful installation and inspection of your rooftop solar system.
The National solar subsidy scheme is also referred to as a Direct Benefit Transfer (DBT) scheme. Users applying for solar subsidies through the national portal will receive the authorized subsidy amount directly into their bank account within 30 days of the solar installation.
Factors Determining Your Eligibility for MP Solar Subsidy:
- Indigenous solar panels – When setting up your home solar system, the technical specifications mandated under the simplified subsidy process require homeowners to purchase only made-in-India PV modules that incorporate domestically manufactured solar cells. You can verify the ALMM list for Accredited Models & Manufacturers of BIS-compliant Solar Photovoltaic Modules.
- Grid-tied photovoltaic systems – You can apply for a solar system subsidy in MP and other regions solely for residential grid-tied projects (excluding battery storage). Homeowners can attach external solar batteries to their RTS framework; however, the expenses for this additional component are not factored in when determining the subsidy amount.
- Authorized/registered solar suppliers – The MNRE has published a list of registered/authorized solar suppliers empowered to commission and install subsidized RTS projects. These suppliers have been vetted and trained by the Ministry to ensure they strictly comply with the minimum specifications and standards outlined under the streamlined procedure for each rooftop system setup.
- Duties of your supplier – Certain crucial responsibilities must be fulfilled by registered solar suppliers for every subsidized RTS initiative. To assess solar feasibility, your selected supplier is required to conduct a site evaluation based on relevant technical and financial factors. The vendor will also obtain all necessary permits for installation and assist the inspecting authority with the net-metering system installation and solar system assessment. Furthermore, the vendor must maintain RTS facilities for a minimum of a few years following installation.
- Subsidy benchmarks – The online platform will declare subsidy benchmarks under the simplified procedure for each calendar year. The subsidies allocated for various system capacities will be standardized for beneficiaries across all states and Union Territories in India. The updated subsidy benchmarks will be duly published on the national portal.
Learn More About: 3kW Solar System Cost in India with Subsidy
Learn More About: 5kW Solar System Cost in India with Subsidy
Advantages of Solar Panel Subsidy in MP
If you are looking for a cost-effective solution in rooftop solar systems with subsidies in MP, a straightforward grid-connected setup that does not utilize batteries is the ideal choice for you. The financial advantages of solar energy begin to appear as soon as your solar panels start generating solar electricity, continuing throughout the system’s lifespan of over 25 years. In fact, you can expect your solar panels to pay for themselves within merely 6-8 years based solely on the savings you enjoy on your monthly electricity bill. The electricity produced by your solar panels becomes free for your household after the payback period.
When considering a reliable energy source for your home, solar electricity generated by on-site solar panels is clearly superior to conventional grid energy. Extreme weather conditions such as rain and storms can disrupt your grid energy supply for several hours or even days. Conversely, a rooftop solar installation meets your home’s energy demands through power generation while giving you access to grid energy for any additional needs. You can also incorporate external solar batteries to store excess energy production when sunlight is scarce or unavailable at night. This reduces your reliance on grid electricity.
- Cost Savings on Electricity Bills
Solar energy is an abundant free energy resource available throughout the year. Since sunrise is guaranteed each day without interruption, investing in a residential solar power system will be a one-time cost yielding savings and significantly higher returns over its 25-year lifespan.
As solar energy constitutes the majority of your household’s total energy usage, there is no need to worry about load shedding or elevated electricity rates. Solar will substantially lower your monthly electricity expenses. Moreover, solar also becomes an additional source of income for your home when your solar panels produce surplus electricity that can be fed back to the local grid in exchange for solar credits. These minor financial gains can accumulate to become significant annual energy savings for your household.
- Generate your own electricity
The electrical grid relies on a vast network of power lines to deliver electricity to homes. However, a considerable amount of electricity is lost during this process of transmission and distribution. A subsidized solar installation in MP equips your home to produce its electricity, granting you greater control over the power supply and the freedom to utilize it as you wish without being dependent on an unpredictable grid supply.
Selecting the appropriate capacity RTS system based on your household’s monthly electricity requirements will help reduce your grid consumption. Additionally, advanced solar panels with high energy efficiency ratings contribute to increased output of solar electricity based on the sunlight gathered by each solar cell. Consequently, your system will require fewer panels to design a suitable RTS configuration that meets your energy demand.
Cost of a Solar System in Madhya Pradesh with Subsidy
Determining the price of a solar panel system in Madhya Pradesh is influenced by several factors:
Quality and Quantity of Solar Panels: When sizing your home solar system, the objective is to select a plant capacity that generates sufficient energy to offset a larger portion of your electricity bill, thereby reducing grid dependency. However, a larger RTS system necessitates more solar panels to generate the promised capacity, resulting in higher costs.
To lower expenses, you might be tempted to acquire a solar system of a lower capacity than what is necessary to meet your home’s current electricity needs. Alternatively, you may choose inexpensive, lower-efficiency solar panels, which would consequently increase the number of panels required to deliver the promised capacity.
Discover More About: 10kW Solar System Pricing in India with Subsidy
Acquiring solar panels isn’t merely an expensive one-time investment but rather a commitment over the next 25 years. Higher-quality solar panels can provide significantly greater long-term value through efficiency/power generation, dependability, performance, warranty terms, and manufacturer support. Hence, even though their initial cost is higher, they translate to much greater savings over the years.
If you wish to benefit from subsidy on solar panels in MP and various other states, ensure that all solar components in your RTS installation meet the technical standards and specifications set forth by the MNRE. The appointed solar vendor responsible for commissioning and installing your on-grid solar system is also required by the MNRE to adhere strictly to the specified technical standards and specifications and sign an agreement with the consumer to ensure compliance. Consequently, a model agreement has been formulated by the MNRE, which the consumer can submit duly filled and signed at the time of initiating the subsidy process on the online portal.
Installation Convenience: Various factors like the number of panels in your RTS installation, roof type, and intricate angles can complicate the installation process, thus increasing the overall solar expenditure. Your rooftop solar panels need to be arranged in a manner that maximizes sunlight hours and promotes efficient performance throughout the seasons.
A professional solar installer examines your rooftop area concerning orientation, shading, structural integrity, and overall solar viability to determine the most suitable layout and mounting structure. A comprehensive site survey will also evaluate your home’s energy requirements and design-related preferences.
For instance, your solar vendor might suggest an elevated mounting structure if you prefer not to sacrifice your valuable rooftop space for solar panels. A pergola-style RTS system not only enhances your home’s architectural appeal but also allows you to create a stimulating rooftop environment.
Out-of-pocket Expenses: Certain out-of-pocket expenses are associated with owning and maintaining a residential solar system. The net metering regulations govern a grid-connected system where your system transfers excess solar energy (that your home doesn’t utilize) to the government grid in exchange for solar credits. Your net meter also tracks and charges you for drawing grid electricity to meet additional power needs. Additionally, your residential solar system may automatically switch to grid electricity during nighttime and on days of adverse weather when solar production is diminished.
The utility bill generated each month will detail your total imports and exports along with the available solar credit balance. If the imports exceed the exports and your solar credits are insufficient to cover the withdrawals, you will need to cover the difference out of your own pocket.
A variety of residential solar systems require some level of maintenance. Hence, be sure to prepare for post-installation system upkeep costs. The positive aspect is that performance and equipment warranties cover essential solar components (25 years on solar panels; 5-10 years on solar inverters and batteries) and can alleviate the financial burden of replacements. Furthermore, during the warranty period, manufacturers cover replacements for defective or failed components.
The MP government solar panel subsidy scheme mandates all approved distributors to maintain rooftop solar systems for at least 5 years post-installation. However, you may opt for a comprehensive AMC maintenance service package offered by many solar vendors, which includes routine inspections, troubleshooting, and maintenance services throughout your system’s lifespan.
Under the streamlined solar subsidy application process, you have the freedom to select the appropriate size, type, and style of the solar system for your home’s energy requirements and budget. The approved solar vendor can provide assistance to help you make an informed and confident decision. However, the subsidy calculation involves ensuring that you meet the eligibility criteria to obtain the solar subsidy in MP. The revised subsidy calculation approach utilizes your RTS system capacity (approved after inspection by an authorized DISCOM official), unlike the previous method of employing benchmark prices for different sizes of solar systems issued by MNRE. Additionally, the revised subsidy calculation method excludes costs related to net metering and solar batteries.
If you’re considering installing solar panels on your property, an experienced solar company can assist you in maximizing the value of your solar investment. Now there’s only one simple way to determine the exact cost of a solar power system in Madhya Pradesh – obtain an actual quote from Homescape.
The Complete Process for Installing Solar System in Madhya Pradesh
The introduction of the online portal has simplified the process of obtaining solar panel subsidies in MP and other states. Here we have outlined essential steps to quickly initiate your subsidy process online under the solar rooftop subsidy yojana:
- The first step is to activate your beneficiary account at https://www.pmsuryaghar.gov.in/ using your mobile number and email ID.
- After your account is established, you’ll have the login details to access your account anytime to complete the subsidy form regarding the proposed installation of your solar power plant and bank account information. Your application will be forwarded to your local DISCOM authority to assess the technical feasibility of your intended RTS plant and provide approval based on your state’s current regulations.
- Once the DISCOM issues the technical feasibility approval, the same status will be updated in your online application. You will also receive an email notification for the same.
- Once your residential solar facility is established, the designated DISCOM representative will visit your site to evaluate the installed RTS system. In conjunction with the assessment, the representative will also configure and integrate the online metering system.
- The DISCOM will revise all relevant information based on the inspection on the web portal. A successful report will lead to the approval of your rightful subsidy amount, which will now be visible in your online subsidy application.
- You can expect to receive the sanctioned subsidy amount directly in your bank account within the next 30 days post installation. The subsidy rate for the current calendar year will be applicable to all RTS installations nationwide.
Frequently Asked Questions
How much rooftop space will a 1 kWp rooftop system require?
A rooftop solar system with the standard number of solar panels will occupy 10 square meters of unobstructed space. However, a more precise estimation depends on factors such as the type and size of the mounting structure and the quality of solar panels. The higher the efficiency of your solar panels, the fewer panels will be necessary to achieve a 1kW capacity.
How can I take advantage of the online metering service?
It is advisable that if the online metering option is available for you, you should opt for it, especially to avail solar subsidy in MP. The web metering option provides homeowners with the security of grid support when solar power generation falls below the standard. Additionally, your grid-interactive solar system is developed to send any excess/surplus solar energy to the grid and earn solar credits. You can utilize these solar credits to purchase grid electricity for additional energy needs. If you still have solar credits by the end of the year, they are settled in cash, generating extra income.
Do power outages impact my solar system?
A basic grid-connected solar system without batteries will cease functioning whenever there is a power outage in your area. Since your solar system also interacts with the grid and transmits/receives electricity, this poses a risk of electrocution for the line workers operating on the grid. However, you can avoid power interruptions by adding solar batteries to your residential solar system. Such a system automatically switches to solar batteries during a blackout, sparing you from living in darkness.
Can I power my home solely with solar energy?
While you need to remain connected to the grid to qualify for a solar subsidy, you can still achieve complete energy independence. Simply incorporate solar batteries into your home solar PV system so that your home becomes self-sufficient and draws power from stored reserves rather than from the government grid. Your home solar system is connected with the online meter in such a way that the solar energy produced by your panels is the primary source of power for your residence.
During the nighttime hours when solar generation is absent, your home will automatically draw power from the available solar battery reserves. Your residence only draws grid electricity when neither of these main power sources can meet your electricity demands.
