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Home Solar Panel System Subsidy in Uttar Pradesh – 2022

34 min read | By admin

Your rooftop solar system in UP can exalt your home’s value and help you offset your energy cost and carbon emission with low-cost, clean, and renewable solar power. To make the amazing benefits of solar PV systems known and accessible to homeowners across UP and other states, the government of India has made great strides in subsidising home solar systems. Also, the process of availing this financial aid under the Rooftop Solar Programme Phase II scheme has been simplified as per the recent announcement.

With the launch of the National Portal for Rooftop Solar, consumers can now conveniently apply online for the rooftop solar system subsidy scheme in UP and anywhere in India. The applicable amount of solar panel subsidy in UP will be transferred directly to the beneficiary’s account, which is installing a rooftop solar system.

Solar Panel Subsidy in Uttar Pradesh

The Uttar Pradesh New & Renewable Energy Development Agency (UPNEDA) has promised solar subsidies to the residents of Uttar Pradesh upon installing rooftop solar plants. The UPNEDA solar subsidy is in line with the pan-India Rooftop Solar Programme Phase II scheme launched by the Ministry of New & Renewable Energy (MNRE).

The UP solar subsidy scheme aims to make solar PV systems more affordable for institutional, residential, and social sectors, and the scheme is not applicable for industrial, commercial, and public sector undertakings. 

Here is a snapshot of the Central Financial Assistance (CFA)/Central Government Subsidy amount you can expect to receive based on your rooftop solar system capacity. The national simplified subsidy scheme has defined fixed subsidy amounts according to the following slabs, which are the standard across all regions of India. 

Rooftop Solar System Capacity Applicable Subsidy
% Based on System Capacity Amount in ₹

1kW to 3kW

40% Rs. 14,588 per kW
Above 3kW, up to 10kW 20% Rs. 14,588 per kW for the first 3kW and, 

Rs. 7,294 per kW thereafter for the rest

Above 10kW Rs 94,822 fixed Rs. 94,822 fixed
Group Housing Societies/Residential Welfare Associations (GHS/RWA) 20%, for up to 500 kW capacity

Note: The approval of your CFA/subsidy application is subject to the clearance of your rooftop solar system (RTS) and the metering system (which must be installed as per the specified procedure) by the inspecting authority (local DISCOM company). Applications received online through the national portal by December 31, 2022, will be considered for the current subsidy scheme. No applications will be processed with retrospective effect.

Calculation of CFA (Central Financial Assistance)/ subsidy for solar: The CFA/ subsidy would be calculated based on total solar module capacity or the capacity approved by DISCOM, whichever is lower. 

How to Avail Solar Subsidy in UP in 2022

The simplified national programme aims to ease the subsidy application and disbursement process, fast and transparent for consumers. 

The National Portal for Rooftop Solar‘s launch aims to solve the challenges consumers face in availing their respective state-level subsidies  through the local DISCOM company. By putting consumers in control of their subsidy application process, they no longer have to depend on their local DISCOM authority or state-level active subsidy program to avail subsidy benefits or even solar developers for availing subsidy.

For transparent processing of subsidies on solar panels in UP, the portal will allow the registered consumers to track their application online at every step of the way. You can easily log in to check the progress, from filling up the application to the approval and all the way to the release of the subsidy amount upon successful installation and inspection of the rooftop solar system (RTS) system.

Now, consumers can directly initiate their application process for solar panel subsidy in Uttar Pradesh or any other state or Union Territory via the National Solar Portal. The consumer must submit all the rooftop solar system (RTS) installation documents to initiate the subsidy application process. 

Being a Direct Benefit Transfer (DBT) scheme, you will receive the subsidy amount directly in your provided bank account in 30 days. The disbursement depends on the clearance of the installation and commissioning of your grid-interactive solar power systems by the inspecting authority.

Tips to ensure your eligibility for solar subsidy in UP, 2022

  • Made-in-India solar panels – Make sure your rooftop solar system (RTS) is composed of indigenously manufactured PV modules to be eligible for subsidised sector projects. Refer to the ALMM list for Approved Models & Manufacturers of Solar Photovoltaic Modules.
  • On-grid solar systems – You can avail solar system subsidy in UP and anywhere in India only on residential on-grid projects, which are without battery backup. If you choose to add solar batteries to your rooftop solar system (RTS), the cost of solar batteries will be excluded from the subsidy calculation.
  • Registered/empanelled solar vendors – Choose from the solar vendors empanelled with your local Distribution Company/ Utility company (DISCOM) to install your rooftop solar plants. These vendors are vetted by the Ministry for having the requisite expertise to meet prescribed minimum specifications and standards in every installation. The vendor must also maintain your RTS plant for at least five years from the installation date. Look for Amplus KN One Power Pvt Ltd (brand name HomeScape by Amplus Solar) while selecting solar installer for your rooftop solar plant.
  • Necessary assistance to be provided by your vendor – Your chosen registered/empanelled vendor must survey your intended solar installation site to guide you on the rooftop solar system (RTS) capacity suitable for your energy requirements and location, considering the relevant technical and financial parameters. Your vendor will help you obtain necessary approvals, set up the net metering system, and facilitate inspection of the installed solar system by DISCOM.
  • Subsidy rates – The subsidies offered under the simplified process for different system capacities are the same for beneficiaries across all states and Union Territories. The subsidy rates will likely be revised for each calendar year and will be duly notified on the national portal.

Benefits of Solar Panel Subsidy in UP

Because solar power is a clean, sustainable alternative to fossil fuels, the government of India is encouraging the adoption of advanced solar technology for power generation in residential across all sectors. 

Since the upfront investment required to set up a solar system can appear burdensome to a residential consumer, the current Rooftop Solar Programme Phase II scheme aims to subsidise the cost of solar for homes. The reduced cost of solar systems in UP and other states added momentum to their installations, enabling more and more homes to reap the benefits of low-cost, reliable, and eco-friendly solar electricity.

Different loans/financing schemes are also available for budget-conscious consumers who are interested in installing a rooftop solar plant but don’t wish to pay the upfront cost.

Advantages of equipping your home with an on-grid rooftop solar system

A grid-interactive solar system is more cost-efficient and easier to maintain among all the different types of solar systems, some of which include solar batteries. Also, the long-term financial benefits of a home solar system can pay off the costs of your system within 6-8 years of installation. As a result, the solar electricity generated by your PV modules for the rest of its lifespan of 25 years becomes free for you. The many benefits you enjoy from living in a solar-powered home include:

  • Constant supply of power

Solar power generated by your own solar panels is more reliable than what you receive from the local grid. On all days the sun is out in the sky, your solar panels will perform to their standard efficiency level and produce the promised energy units. However, your panels will still generate some electricity when the sunshine is hindered due to cloudy or rainy weather. In case of low power generation, you can always count on the grid to meet your additional electricity needs.

  • Cost Savings on Electricity Bills

As soon as your home solar system swings into action, you start saving on the monthly electricity bills. Your rooftop solar plant will be designed to generate enough power to meet most of your electricity demands. Your monthly electricity bill reduces as your grid electricity usage declines. In fact, your solar panels will generate surplus energy units on many days. This unused electricity is transferred to the grid and is recorded as solar credits in your utility bills. All these small portions of savings can add up to show significant energy savings in a year. You can save up to 90% on your electricity bills by switching to solar.

  • Generate your own electricity

A lot of energy is lost in the transmission and distribution of power through the T&D lines connecting homes to the grid. You have more control over solar electricity generation and consumption by producing your own electricity. With the right capacity rooftop solar system (RTS), you can reduce and even eliminate your dependence on the utility company. Today’s highly energy-efficient solar panels offer increased energy output against the amount of sunshine harvested by each solar cell. Hence, you may need fewer panels to meet your home’s electricity requirements.

Price of a Solar System in UP with Subsidy

Sticker shock can influence our decisions, which is no less true for home solar installations. Hence, solar system price in UP is a key consideration in every home planning to go solar, and its calculation is complicated by many variables.

Type and Materials: Speaking of solar system cost in UP, your home solar system price in UP, and its performance, will largely depend on the type and size of your solar system and the quality (efficiency rating of solar panels) and the number of components involved. To be eligible to avail subsidy, you must ensure that you connect your home solar plant to the local government grid – meaning you can either choose a grid-connected or hybrid solar system.

Homeowners looking for the least costly way to get solar can use the grid-connected solar system. The system consists of solar panels and a solar inverter. On the other hand, a hybrid solar system is an ideal choice if you aspire to achieve energy independence. The inclusion of solar batteries enables you to store solar electricity for later use and, thus, minimise or completely eliminate your dependency on the government grid and avoid sudden power outages.

However, you require more solar panels to generate enough energy to keep the batteries fully charged and also fulfil your home’s daily power demand. 

The MNRE outlines certain technical standards and specifications for different components of rooftop solar (RTS) to be eligible for solar subsidy in UP and other states. Hence, your solar vendor must commission and install your home solar system as per the prescribed technical standards and specifications and sign an agreement with you declaring the same. To that end, you can use the model agreement prepared by the MNRE and submit the same when applying for your solar plant subsidy in UP.

Design and Installation: When placing solar panels on your rooftop, the first step is to figure out the right layout to give your solar structure maximum access to sunlight. Hence, a professional solar installer can help you evaluate your available rooftop area for shading, orientation, structural integrity, and overall solar profitability. 

A professional rooftop assessment will also consider your energy requirement and your preferences to design the most suitable solar system. For example, if you don’t want to lose your valuable rooftop space to solar, you can choose a pergola-style rooftop solar system that looks beautiful and allows you to recreate your rooftop space in a more aesthetic way.

You will also need expert solar installers to safely and securely mount your rooftop solar structure for maximum lifespan and performance. These costs will further increase the price of your solar plant in UP.

Out-of-pocket costs: When calculating the price of your solar panel system in UP, you might also want to factor in the possible post-installation costs. While the provision of net metering rewards you for contributing unused solar electricity to the grid by offering solar credits, it allows you to withdraw grid electricity when solar energy generation is nil or quite low. Your monthly bill will reflect all exports and imports, and you will be required to settle the difference arising when imports exceed exports and you don’t have enough solar credit balance to pay for all the units withdrawn.

Another out-of-pocket cost is associated with solar system maintenance. With several home solar companies, you might enjoy product and performance warranties (25 years on solar panels; 5-10 years on the solar inverter and solar batteries). All replacements arising after the provided warranty period will be borne by the owner. Moreover, your solar components will also need a routine inspection, troubleshooting, and maintenance, which many companies might cover through exhaustive AMC maintenance service packages.

Under the simplified solar subsidy application procedure, a solar-ready homeowner and the empanelled solar vendor can mutually decide on the different sizes, types, and prices of solar panel systems in Uttar Pradesh. The revised subsidy calculation method is based on the rooftop solar system capacity you buy, unlike the earlier method that used the MNRE-issued benchmark cost. Please note that the cost of net metering and battery backups (a component of hybrid solar systems) is not factored in the subsidy calculation.

Professionally set up home solar panel systems can generate ample electricity to make your solar investment worthwhile and even profitable, especially through net metering. If you want to determine the cost of a solar power system for your home, the easiest way to know for sure is to get an actual quote from an experienced solar system provider such as HomeScape by Amplus Solar.

The Complete Process for Installing Solar System in Uttar Pradesh

Suppose you are planning to get a grid-connected rooftop solar system and wish to avail the subsidy benefits. In that case, you can apply for a solar system subsidy in UP through the online portal launched by the central government. Here is the complete procedure you need to follow to successfully initiate the process under the solar rooftop subsidy yojana: 

  • Firstly, the consumer will register using the mobile number and email id to create an account on National Portal for Rooftop Solar.
  • Using the login credentials, the consumer can log in to submit the application by providing the necessary information and bank account details. The same application will be sent to your local DISCOM company. It will ascertain your rooftop solar system installation’s technical feasibility and provide approval as per the prevailing state regulations.
  • Upon receiving the technical feasibility approval, the status will reflect on the portal and be notified to the consumer via email. 
  • Now the consumer can have the rooftop solar system installed by the empanelled vendor and submit the related documents on the online portal. This will initiate the set step of physical inspection and installation of the net meter.
  • The assigned DISCOM official will visit the location to inspect the installed rooftop solar system. They will also set up the net metering system.
  • Once the net metering system is set up and the concerned details are updated on the portal by DISCOM, the clearance of the subsidy amount will reflect on your application.
  • The subsidy amount will be credited directly to the provided bank account within 30 days post installation. The subsidy rate will apply to all the rooftop solar system installations throughout the Country.

FAQs

How much do I need to install a 1 kWp rooftop solar PV system?

A standard rooftop system of 1kW capacity requires 10 sq. metres of the area free of shade. However, the area requirement also depends on the mounting structure used and the efficiency rating of solar panels, influencing the number of panels required to generate 1kW.

Why do I need a shadow-free area for installing solar PV modules?

The solar cells on your solar panels need uninterrupted sunlight to function at their peak efficiency level and give maximum solar energy output. Shade from neighbouring trees and buildings covering even a small part of the solar panel surface can impact the solar production output across the array as solar cells are interconnected. Prolonged shade (though intermittent) on some solar cells or panels can reduce the standard lifespan of your panels.

Is there any product or performance warranty on solar components? 

Many reputed solar companies like HomeScape by Amplus Solar cover their solar panels with a performance warranty of 25 years, wherein you can get a free-of-cost replacement if any solar panel suffers damage. Other components, such as solar inverters and batteries, comes with 5-10 years of product warranty. If you also need reliable maintenance and servicing of your home solar system, you can also opt for solar AMC packages offered by most professional solar providers.

How much annual energy will I generate from the rooftop solar system?

Several factors influence your rooftop solar system’s energy generation capacity throughout the year. These are the location and installation of the solar panels, quality of components used, number of sun hours in a day, module cleaning, and so on. You will also see varying levels of solar energy production across different seasons. Your solar installer can help you foresee your annual solar production and also recommend installing a monitoring device to track the daily output.

Do I still get electricity when the sun is down? 

Your solar panels go dormant during the night hours and on inclement weather days. However, your grid-connected solar system will instead draw grid electricity to power your home. If your rooftop solar system includes solar batteries, it will use the available solar energy reserve before switching to grid electricity.

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