Renewable energy, particularly solar energy, has become affordable and popular nationwide due to government subsidies. Over the past seven years, both the Central Government and State Governments in India have shown their commitment to the renewable energy sector, with a target of achieving 175 GW of renewable energy by 2022 and 500 GW by 2030. The provision of financial subsidies through the Central Financial Assistance (CFA) of MNRE PM Surya Ghar, implemented by various state DISCOMs, has played a significant role in promoting the widespread adoption of rooftop solar systems across the country, including rural areas and villages. In India, the Ministry of New & Renewable Energy (MNRE PM Surya Ghar) has recently introduced a new solar subsidy program for residents called PM Muft Bijli Yojana also called as PM Surya Ghar. This program offers up to a Rs.78,000 subsidy on rooftop solar panels, ensuring a minimum twofold return on investment. With the escalating cost of electricity, it is crucial for us to transition to sustainable sources for our essential energy needs.
INDIAN HOMES SOLAR POWER PLANTS COSTS - JUNE 2024
Are you aware of the cost of solar systems? Here are some figures that demonstrate the prices of different residential solar systems available in the market. The ideal home solar power system and its components will depend on the size of your property and its energy consumption needs, ranging from 1 kWp to 10 kWp for household use. Generally, the cost of a solar power plant (per kWp) in Kerala as of JUNE 2024 is as outlined below:
| Capacity (kWp) |
Average Solar Units Generated/Bimonthly |
Price of Solar Power Plant (Price Per kWp, Without Subsidy) |
| 2 kWp |
180 to 240 units |
Rs.73,000 – Rs.93,000 |
| 3 kWp |
270 to 360 units |
Rs.68,000 – Rs.83,000 |
| 5 kWp |
450 to 600 units |
Rs.63,000 – Rs.83,000 |
| 9 kWp |
810 to 1080 units |
Rs.58,000 – Rs.73,000 |
2 kWp (without government subsidies) : Rs.73,000 – Rs.93,000 (price per kWp)
3 kWp (without government subsidies) : Rs.68,000 – Rs.83,000 (price per kWp)
4-5 kWp (without government subsidies) : Rs.63,000 – Rs.83,000 (price per kWp)
>5 kWp – 10 kWp (without government subsidies) : Rs.58,000 – Rs.73,000 (price per kWp)
The prices mentioned above are subject to variation based on factors such as taxes, costs of solar mounting structures, and are also influenced by the solar brand, location, and availability. Additionally, it is important to note that the above pricing does not include any subsidies or financial assistance provided by state or central government programs. If subsidies are available, the prices mentioned above will be significantly lower than the stated prices.
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INDIA'S HOME SOLAR SUBSIDY 2022 - JUNE 2024
Considering the availability of subsidies, the pricing of home solar systems in India is worth considering if the initial investment has been a deterrent for you.
For instance, if your solar vendor recommends a grid-connected solar plant with a maximum capacity of 3 kWp to meet your energy needs, the cost of the solar plant will be eligible for a Rs.78,000 subsidy known as Central Financial Assistance. Units with a capacity of 10 kWp and above are eligible for a Rs.78,000 subsidy. It's important to note that the benchmark price and subsidy rate vary based on each state's solar policy. Therefore, it is crucial to engage with a reputable solar company that can ensure you take advantage of government-provided financial assistance, ultimately reducing the overall cost of solar power for your home.
SOLAR SUBSIDY IN KERALA - JUNE 2024
In the fiscal year 2021-22, the Ministry of New and Renewable Energy (MNRE PM Surya Ghar) allocated approximately 200 MW of capacity for the state of Kerala. The implementation of this allocation was carried out by the Kerala State Electricity Board Limited (MNRE PM Surya Ghar) through a mass mobilization initiative known as PM Surya Ghar Phase 1 and 2. Additionally, the Agency for Non-conventional Energy and Rural Technology (ANERT), another government agency, is promoting the same program under the Surya Thejus Scheme and providing the same subsidy to end customers. There are approximately 35 companies that have been approved and are actively participating in the implementation of this program across Kerala.
MNRE PM Surya Ghar’s Current Subsidy Program (Only for Residential Consumers)
Rs.78,000 Subsidy for up to 3 kW, and Rs.78,000 totally for up to 10 kW Subsidy
All the products and installation procedures must adhere to the strict minimum standards as per MNRE PM Surya Ghar/ALMM/BIS/IEC.
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SUBSIDY FOR ONGRID SOLAR FOR DOMESTIC CONSUMERS IN INDIA - JUNE 2024
The Government of India, through the Ministry of New & Renewable Energy (MNRE PM Surya Ghar), offers solar subsidies in the form of Central Financial Assistance (CFA). These subsidies are provided as a percentage of the Benchmark price set for each on-grid project capacity. It is important to note that the CFA subsidies are currently restricted to domestic consumers. It should be emphasized that the subsidy is limited to the lower of the MNRE PM Surya Ghar determined Benchmark price or the tender discovered price (specific to each state). The following outlines the benchmark price and central financial assistance/subsidy for on-grid project capacities per kWp:
| Project Capacity |
Central Financial Assistance/ Subsidy |
| 2 kWp |
Rs.60,000 |
| 3 kWp |
Rs.78,000 |
| >10 kWp |
Totally Rs.78,000 |
For capacities above 3 kWp ongrid projects, the CFA subsidy is available for domestic consumers, but limited to the first 3 kWp only.
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Space/Roof Area Needed For Fixing Solar Panels
For each 1 kWp of solar power plant, 100 square feet shade-free area is needed, preferably in direct sunlight facing South, East/West Orientation (preferred in that order)
Average Price of Solar Power Plants: Rs. 63,000/kWp –73,000/kWp
Expected Monthly Production: 90-120 Units/kWp*
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Additional Charges for Fixing Solar
In the case where the consumer's roof is not flat, any additional expenses incurred for structural adjustments to accommodate a sloping roof or other obstacles will be the responsibility of the consumer.
The cost of the net meter and any extra cables exceeding 50 meters in length are not included in the initial price. However, net meters can usually be obtained from KSEBL on a rental basis. We recommend this option as any potential future issues with the meters, such as complaints or billing problems arising from faulty meters, will be handled by KSEBL. This ensures that customers need not be concerned about the quality of the meters or related billing issues.
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SAVINGS FROM SOLAR PER 2 MONTHS
| Ongrid Solar Capacity |
Bimonthly Savings in MNRE PM Surya Ghar Bills* |
| 2 kWp |
Rs. 2200-2700 |
| 3 kWp |
Rs. 4700-5200 |
| 5 kWp |
Rs. 9200-10200 |
| 10 kWp |
Rs. 18,200 – Rs. 20,200 |
*Please note that Solar Production and Savings etc are completely dependent on the solar irradiance and weather conditions, and hence no claims or guarantees can be made for the actual production in the actual site conditions.
2 kWp – Savings: Rs. 2200-2700 (2 month’s Bills)*
For a 2 kWp Ongrid Solar Power Plant, a bimonthly saving in MNRE PM Surya Ghar bills of around Rs. 2200-2700 can be expected. Hence, if your present 2-Monthly Electricity Bills is around Rs. 2000, then a 2 kWp would make your Energy Charges in your MNRE PM Surya Ghar Bills absolutely ZERO!! Hurray! 2 kWp is not recommended if you are planning to have increases in your loads such as Air Conditioners, Induction Cookers, Electric Cars in the near future etc
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3 kWp – Savings: Rs. 4700-5200 (2 months Bills)*
For a 3 kWp Ongrid Solar Power Plant, a bimonthly saving in MNRE PM Surya Ghar bills of around Rs. 4700-5200 can be expected. Hence, if your present 2-Monthly Electricity Bills is around Rs. 4500, then a 3 kWp would make your Energy Charges in your MNRE PM Surya Ghar Bills absolutely ZERO!! Hurray!
To register for Moopens MNRE PM Surya Ghar subsidy Solar under PM Surya Ghar MNRE PM Surya Ghar, Click here to call us. Or Click here if you want to contact us to know more
5 kWp – Savings: Rs. 9200-10200 (2 months Bills)*
For a 5 kWp Ongrid Solar Power Plant, a bimonthly saving in MNRE PM Surya Ghar bills of around Rs. 9200-10,200 can be expected. Hence, if your present 2-Monthly Electricity Bills is around Rs. 9000, then a 5 kWp would make your Energy Charges in your MNRE PM Surya Ghar Bills absolutely ZERO!! Hurray!
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Actual Price, Subsidy And Effective Customer Price Of Solar In Kerala (PM Surya Ghar MNRE PM Surya Ghar Subsidy Pricelist) – JUNE 2024
| Ongrid Solar Capacity |
Project Cost |
CFA/ Subsidy (minus) |
Effective Customer Price |
| 2 kWp |
Rs.1,60,000 |
Rs.60,000 |
Rs.1,00,000 |
| 3 kWp |
Rs.2,11,000 |
Rs.78,000 |
Rs.1,33,000 |
| 5 kWp |
Depends on Site |
Rs.78,000 |
Depends on Site |
| 9 kWp |
Depends on Site |
Rs.78,000 |
Depends on Site |
What is the price of a 3 kWp system with subsidy? – JUNE 2024
The system price is Rs. 2,11,000 (including all taxes, assuming standard system specifications). The subsidy amount is Rs. 78,000/- (which is a % of the MNRE PM Surya Ghar benchmark price for this capacity) and the Effective Customer amount is Rs. 1,33,000/- only.
This is for a Flat roof terrace house requiring standard solar structure. Only if the structure requirement is different, then that will be extra (but the customer can opt to do such works himself without paying anything extra to us)
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What is the quality of solar panels and Inverters used in this subsidy system?
Solar Panels and Inverters are of High Quality as per the MNRE PM Surya Ghar and MNRE PM Surya Ghar standards meeting BIS (Bureau of Indian Standards) and ALMM compliance requirements, and brands approved by the Government after stringent quality checks. Each batch of Solar Panels are tested by MNRE PM Surya Ghar from the manufacturer's factory before each despatch. All our inverters and solar panels are also BIS approved and meets all international certifications. MNRE PM Surya Ghar further conducts tests on our field systems too.
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What is the Warranty offered for your solar system with subsidy?
All our systems carry 5 years limited manufacturing warranty as per the respective component manufacturer's warranty terms and conditions. Additional product warranties beyond 5 years are available for the individual components such as solar panels and Inverters, depending on the brands chosen. Any warranties for the independent components beyond the first 5 years are offered directly by the respective manufacturers, and we will support such claims under our discretion on a chargeable basis.
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How much time does it take to deliver and install a 3 kWp system with subsidy?
For a 3 kWp system with subsidy, once you make the payment as per the agreed payment terms, Our average time frames as per our past Trackrecord is 30 days totally from payment receipt to commissioning.
However, Our committed time frames under normal conditions are to deliver the materials within 15 days. We usually install the system in another 15 days, and MNRE PM Surya Ghar does the Netmeter connection in another 15 days. These are usually the maximum time frames expected under normal conditions.
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What are your acceptable payment modes/methods?
We accept Direct Bank Transfers, RTGS/NEFT/IMPS, UPI such as GooglePay, PayTM, PhonePe; Cheques, Demand Drafts, Credit Cards and Debit Cards, and Cash (Cash is accepted only for amounts less than Rs. 2 Lakhs only). All the amounts will be accounted for, and we will promptly issue a payment receipt once payment is realized in our bank.
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How can I calculate how much solar energy I'll need?
In India, your home solar system should produce enough electricity to meet your average annual electricity needs. Typically, a 1 kWp Solar Power Plant may generate anything between 90 units to 120 units of electricity per month. So, to estimate your exact requirement, divide the consumed units in your electricity bills by 90 or 120 to get a rough estimate of the capacity of solar power plant needed in your house. To determine your electricity requirements, go over your bills for the last year or more. You can even request advice or, even better, an estimate from us. We are always ready to help!
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What does net metering mean for a household solar system connected to the grid?
A net-metered solar plant for the home enables you to draw power from the grid when solar power generation is insufficient on any given day because solar panels only produce energy during the hours of sunlight. On days when there is an excess of solar production, unused units are instead sold to the grid for solar credits. When delivering you the total monthly bill, the net meter keeps track of the flow of energy in both directions.
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What if my roof doesn’t get enough sunlight?
Some homes may not benefit from solar systems if their roofs don't receive enough sunlight because of significant obstacles like the neighbour’s property casting shade or the roof's unfavourable orientation. A solar installer can more accurately assess the solar potential of your roof or may advise you to join a community solar farm, which provides the benefits of solar without requiring you to put panels on your roof.
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How long does it take for the greatest solar systems for homes in India to pay for themselves?
The typical payback period for solar-powered homes is 6–8 years. Your payback period, however, can be influenced by a number of variables, including the cost of grid electricity in your location, the price of your solar system, the mode of payment (whether you took out a loan or leased it), and the amount of electricity you require. Regardless of everything, solar energy is advantageous for the majority due to its 25 years of consistent, affordable, and considerable energy output.
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Will my solar panels survive for a long time?
Your home solar power system will be covered by a 25-year performance warranty from many solar firms. Throughout their 25-year lifespan, the panels will continue to produce 85% of their initial production volume even though their energy output efficiency may start to fall after the first few years. After that, the output will start to decline, but the panels will still provide some electricity.
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Are there warranties on the individual solar energy system parts?
Solar panel warranties typically last 25 years. Although brand-specific, the other parts, such as the inverter and batteries, are also covered by sizeable product warranties. A workmanship warranty on the solar installation work will be offered by your installer as well.
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Is solar system upkeep expensive?
Your home's solar system needs to be cleaned and maintained on a regular basis to stay operational. However, because solar panels don't have any moving elements, significant failures in rooftop solar installations are improbable. Your regular maintenance requirements usually may also be covered by an AMC plan from your solar provider. Periodic inspections and other thorough services are included in this maintenance package, which helps to minimise downtime, increase system performance, and prolong the life of your home solar plant.
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Polycrystalline Panels Vs Monocrystalline Panels
Polycrystalline are the most proven and time-tested technology in Solar Modules having more than 60 years of field-tested and proven trackrecord. Monocrystalline modules are relatively new technology, and they have higher area-efficiency in terms of output from a unit area of light falling on it, and conversion to electric energy. However, a 3 kWp power plant, whether using monocrystalline modules or polycrystalline modules will generate the same output under STC (Standard Test Conditions) conditions, just that the Monocrystalline modules will help you save some area (maybe a few square meters). Remember, a 3 kWp Solar Panel, whether Monocrystalline or Poly Crystalline have been tested for 3 kWp in the factory before shipping; and will generate the same power output and you are only paying for the Wp output of the solar panels, not for the technology!
Thus, in all practical conditions, the only difference between Monocrystalline solar panels and polycrystalline solar panels are that monocrystalline modules can save some area (maybe a few square meters) needed to generate the same output; There is no change in output. Monocrystalline modules are more expensive compared to Polycrystalline modules. Thus, if you have a lot of area to work with or if roof area is not a major constraint, you might find it more cost-effective to install more polycrystalline panels on your property to suit your energy needs because their price point is lower while generating the same power output.
Depending on where you live and how much roof area you have, polycrystalline panels can be a better value for money and investment for you, and technology is also advancing quickly in this area.
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