Solar Panel System Subsidy in Madhya Pradesh 2024

32 min read | By admin

Home solar systems are widely recognised and adopted among homeowners who want to avoid paying high electricity costs. The government of India also aims to popularise this emission-free, low-cost, and renewable energy source among the residents by subsidising the cost of home solar systems.

The Rooftop Solar Programme Phase II scheme has undergone massive transformations since its launch, and the new simplified procedure intends to make this financial aid easily accessible for all. National Portal for Rooftop Solar allows consumers to initiate their subsidy application process online quickly. This subsidy procedure transfers the approved solar benefits directly into the consumer account based on the clearance of your installed Rooftop Solar (RTS) system. 

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    Solar Panel Subsidy in Madhya Pradesh

    The MP government solar panel subsidy is available under the Rooftop Solar Programme Phase II scheme introduced by the Ministry of New & Renewable Energy (MNRE). Central Financial Assistance (CFA)/Solar Subsidy Support can subsidise your home’s solar cost. 

    However, the national solar subsidy scheme is available only for residential property owners, institutions, and social sectors. The subsidy scheme isn’t available for industrial, commercial, and public sector undertakings for installing solar. 

    The recently introduced subsidy rates under the national simplified subsidy scheme offer a fixed amount for each kW of solar system capacity. These subsidy slabs for different system capacities are standard across all states in India.

    Rooftop Solar System Capacity % Based on System Capacity Amount in ₹
    1kW to 3kW 40% 18,000 per kW
    Above 3kW, up to 10kW 20% 18,000 per kW for the first 3kW
    9,000 per kW thereafter for the rest
    Above 10kW 1,17,000 fixed
    Group Housing Societies/Residential Welfare Associations (GHS/RWA) 20%, for up to 500 kW capacity

    Note: Your CFA/subsidy application will only be approved upon the clearance of your RTS and net metering system by the assigned inspecting authority from your local DISCOM company. The net-metering system must be integrated into your solar power plant as per the specified procedure. All online subsidy applications received by December 31, 2024, through the national portal will be processed as per the current subsidy scheme and rates only. No applications will be processed with retrospective effect.

    Calculation of CFA/ subsidy: The CFA/subsidy calculation is based on your total solar system capacity or the maximum solar system capacity approved by your local DISCOM, whichever is lower. 

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      Read More About: 1kW Solar System Price in India with Subsidy

      How to Avail Solar System Subsidy in MP

      With the aim of achieving the 4 GW residential solar installation target by 2024, the government of India has been offering solar panel subsidies in MP and other states only on rooftop solar projects. The purpose is to encourage the adoption of solar among homeowners. Since the launch of the simplified national programme, the subsidy application and distribution process has become faster, simpler, and more transparent for consumers. 

      On July 30, 2022, Prime Minister Narendra Modi launched the National Portal for Rooftop Solar to promote a unified National Subsidy Scheme across all states. The online portal has resolved many challenges consumers face when availing their rightful subsidy benefits. 

      The one-stop platform accepts applications and allows solar-ready homeowners to initiate the subsidy process online. This has replaced the old, tiresome process that required the beneficiary to make several visits to the local DISCOM company and apply only through state-level subsidy programmes (which will still run parallel to the National Subsidy Scheme). As a result, now consumers have higher control over their subsidy application at every step of the way, from form submission and documentation to inspection and disbursement of the subsidy amount. 

      Read More About: 2kW Solar System Price in India With subsidy

      The portal has all the advanced features to facilitate the transparent processing of solar rooftop subsidies in Madhya Pradesh and everywhere in 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 fill up the application form, get notified upon receiving approvals (or refusals), and learn about your potential subsidy amount upon the successful installation and inspection of your rooftop solar system.

      The National solar subsidy scheme is also known as a Direct Benefit Transfer (DBT) scheme. Consumers applying for solar subsidy through the national portal will get the approved subsidy amount directly in their bank account within 30 days of the solar installation.

      Factors that decide your eligibility for MP solar subsidy: 

      • Indigenously-manufactured solar panels – When designing your home solar system, the technical specifications prescribed under the simplified subsidy procedure require homeowners to buy only made-in-India PV modules that use made-in-India solar cells. You can check the ALMM list for Approved Models & Manufacturers of BIS-compliant Solar Photovoltaic Modules.
      • On-grid solar systems – You can apply for solar system subsidy in MP and other states only for residential on-grid projects (excluding the battery backup). Homeowners have the liberty to attach external solar batteries to their RTS framework. However, the cost of this additional component is excluded while calculating the subsidy amount.
      • Registered/empanelled solar vendors – The MNRE has issued a list of registered/empanelled solar vendors who are authorised to commission and install subsidised RTS projects. The Ministry has screened and trained these vendors to ensure that they strictly honour the minimum specifications and standards prescribed under the simplified procedure for every rooftop system installation.
      • Obligations of your vendor – There are some essential duties that empanelled solar vendors are required to perform in every subsidised RTS project. To establish solar suitability, your chosen vendor must perform a site assessment aligned with relevant technical and financial parameters. The vendor will also procure all required permits for the installation and further assist the inspecting authority in the installation of the net-metering system and the inspection of the solar system. The vendor must also maintain RTS plants for a minimum of years from installation.
      • Subsidy rates – The online portal will announce subsidy rates under the simplified process for every calendar year. The subsidies provisioned for different system capacities will be standard for beneficiaries from all states and Union Territories in India. The revised subsidy rates will be published duly on the national portal.

      Read More About: 3kW Solar System Price in India with Subsidy
      Read More About: 5kW Solar System Price in India with Subsidy

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        Benefits of Solar Panel Subsidy in MP

        When you are searching for a budget-friendly option in rooftop solar systems with subsidies in MP, a simple grid-interactive setup that doesn’t use batteries is the right choice for you. The financial benefits of solar start to show as soon as your solar panels start producing solar electricity, and these continue for over 25 years of the system’s lifespan. In fact, you can expect your solar panels to pay for themselves in just 6-8 years merely through the savings you enjoy on your electricity bill every month. The electricity supplied by your solar panels becomes free for your household after the payback period.

        • Constant supply of power

        Speaking about a reliable power source for your home, solar electricity produced by on-site solar panels is a clear choice over traditional grid power. Harsh weather conditions like rain and storms can interrupt your grid power supply for several hours and even days. On the other hand, a rooftop solar plant matches your home’s electricity demand through power generation and gives you access to grid electricity to fulfil any additional requirements. You can also add external solar batteries to store surplus energy production when the sunshine is weak or unavailable at night. This helps cut down your dependence on grid electricity. 

        • Cost Savings on Electricity Bills

        Solar energy is a free power source available in abundance around the year. Since sunrise is promised to us every day without any impediments, switching to a home solar power plant will be a one-time investment that will bring you savings and much higher returns throughout its lifespan of 25 years. 

        As solar power makes up most of your home’s total energy consumption, you don’t have to worry about load shedding or high electricity bills. Solar will lower your monthly electricity expenses. Plus, solar also becomes an additional source of earning for your home when your solar panels generate surplus electricity, which can be sent to the local grid in exchange for solar credits. These small portions of financial gains can add up to become significant annual energy savings for your home.

        • Generate your electricity

        An electrical grid uses a vast network of power lines to deliver electricity to households. However, an appreciable percentage of electricity is lost during this process of transmitting and distributing power. A subsidised solar plant in MP empowers your home to generate its electricity, thereby giving you more control over the electricity supply and the freedom to use as you see fit without depending on unpredictable grid supply. 

        Selecting the right capacity RTS system based on your home’s monthly electricity requirements will enable you to cut down on your grid withdrawals. In addition, the advanced solar panels with a high energy-efficiency rating, also help in a higher yield of solar electricity against the sunshine harvested by each solar cell. As a result, your system will need fewer panels to design a suitable RTS system to match your electricity demand.

        Price of a Solar System in Madhya Pradesh with Subsidy

        Calculating the cost of a solar panel system in Madhya Pradesh is complicated by several factors:

        Quality and Number of Solar Panels: When sizing your home solar system, the goal is to choose a plant capacity that generates ample power to cancel out a bigger share of your power bill, thereby reducing grid dependency. However, a more extensive RTS system will require more solar panels to generate the promised capacity, meaning increased costs.

        To reduce the cost, you might be tempted to buy a lower-capacity solar system than required to meet your home’s current electricity usage. Or you may want to go for cheap, lower-efficiency solar panels, but that increases the number of panels required to produce the promised capacity.

        Read More About: 10kW Solar System Price in India with Subsidy

        Buying solar panels isn’t just a costly one-time event but rather an investment in the next 25 years. Better quality solar panels can offer a much higher long-term value in terms of efficiency/power yield, reliability, performance, warranty conditions, and manufacturers’ services. So even though they cost more upfront, they amount to much higher savings for more years.

        If you want to avail subsidy on solar panels in MP and other states, ensure all the solar components in your RTS plant conform to the technical standards and specifications specified by the MNRE. The empanelled solar vendor commissioning and installing your on-grid solar system is also obligated by the MNRE to strictly follow the prescribed technical standards and specifications as well as sign an agreement with the consumer to promise compliance. For this reason, a model agreement has been prepared by the MNRE, which the consumer can submit duly filled in and signed at the time of initiating the subsidy process on the online portal.

        Ease of Installation: Several factors like the number of panels involved in your RTS plant, type of roof, and challenging angles, can complicate the installation process and thus add to the total solar cost. Your rooftop solar panels must be placed in a way that give them maximum Sun hours and facilitates efficient performance across all seasons. 

        A professional solar installer evaluates your rooftop space for orientation, shading, structural integrity and overall solar profitability to determine the most suitable layout and mounting structure. A comprehensive site survey will also ascertain your home’s energy requirements and design-related preferences.

        For instance, your solar vendor might recommend an elevated mounting structure if you don’t wish to lose your valuable rooftop space to solar panels. A pergola-style RTS system not only adds to your home’s structural beauty but also allows you to recreate an exciting rooftop space.

        Out-of-pocket costs: Some out-of-pocket costs are involved in owning and maintaining a home solar system. The net metering regulations govern a grid-interactive system wherein your system transfers excess solar energy units (that your home doesn’t use) to the government grid in exchange for solar credits. Your net meter also records and charges you for drawing grid electricity to meet additional electricity requirements. In addition, your home solar system may automatically switch to grid electricity during the night hours and on inclement weather days when solar production is reduced.

        The utility bill generated every month will outline your total imports and exports and the available solar credit balance. If imports are higher than exports and your solar credits aren’t enough to pay for the withdrawals, you’ll have to settle the difference out of your pocket. 

        All types and sizes of home solar systems require some upkeep. Hence, make sure you prepare for post-installation system maintenance costs. The good news is that performance and equipment warranties cover key solar components (25 years on solar panels; 5-10 years on the solar inverter and solar batteries) and can take the financial burden of replacements off your shoulders. In addition, during the warranty period, the manufacturers cover replacements arising from defective or failed parts.

        The MP government solar panel subsidy scheme requires all empanelled vendors to maintain rooftop solar systems for at least five years after installation. However, you can opt for a complete AMC maintenance service package offered by many solar vendors and get routine inspection, troubleshooting, and maintenance services throughout your system’s life.

        Under the simplified solar subsidy application procedure, you are free to decide upon the right size, type and style of the solar system for your home’s energy needs and budget. The empanelled solar vendor can offer assistance to help you make an informed and confident decision. However, the subsidy calculation involves ensuring that you meet the eligibility criteria to receive the solar subsidy in MP. The revised subsidy calculation approach uses your RTS system capacity (approved after the inspection by an authorised DISCOM official), unlike the former method of using benchmark costs for different sizes of solar systems issued by the MNRE. Also, the revised subsidy calculation method excludes costs related to net metering and solar batteries.

        If you are planning to put solar panels on your home, an experienced solar company can help you get the maximum value out of your solar investment. Now there is only one easy way to know the exact cost of a solar power system in Madhya Pradesh – get an actual quote from Homescape.

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          The Complete Process for Installing Solar System in Madhya Pradesh

          The launch of the online portal has eased the process of availing solar panel subsidies in MP and other states. Here we have outlined key steps to quickly initiate your subsidy process online under the solar rooftop subsidy yojana:

          • The first step is to activate your beneficiary account on https://solarrooftop.gov.in/ using your mobile number and email id.
          • Once your account is set up, you will have the login credentials to log into your account at any time to fill up the subsidy form with the intended installation of your solar power plant and bank account details. Your application will be assigned to your local DISCOM authority to evaluate the technical feasibility of your intended RTS plant and send approval based on your state’s prevailing regulations.
          • Once the DISCOM issues the technical feasibility approval, the same status will also be updated on your online application. You will also receive an email notification for the same. 
          • Now you have the necessary approval to proceed with your RTS system installation. You are recommended only to choose an empanelled vendor and send all the related documents online to ensure that you maintain your eligibility for subsidy benefits. The next step to RTS system installation involves a physical inspection of your solar panel site and the newly-installed net meter.
          • Once your residential solar plant is set up, the assigned DISCOM official will come to survey your location and the installed RTS system. Along with the inspection, the official will also install and integrate the net metering system.
          • The DISCOM will update all relevant details based on the inspection on the online portal. A successful report will lead to the clearance of your rightful subsidy amount, which will now appear on your online subsidy application.
          • You can expect to receive the approved subsidy amount directly in your bank account in the next 30 days post installation. The subsidy rate for the ongoing calendar year will apply to all RTS installations across the country.

          Frequently Asked Questions

          How much rooftop space will a 1 kWp rooftop system take?

          A rooftop solar system with the standard number of solar panels will take up 10 sq. metres of no-shadow area. However, a more accurate estimation depends on factors like the type and size of the mounting structure and the quality of solar panels. The higher the efficiency of your solar panels, the lesser the number of panels will be required to produce a 1kW capacity.

          How can I benefit from the net metering facility?

          It’s advised that if the net metering option is available for you, you must opt for it, especially for availing solar subsidy in MP. The option of net metering gives homeowners the assurance of grid support when solar electricity generation declines below the standard. Furthermore, your grid-interactive solar system is designed to send any unused/surplus solar energy to the grid and earn solar credits. You can use solar credits to buy grid electricity for additional power demands. If you still have solar credits by the end of the year, they are settled in cash and bring an additional extra income.

          Do power outages affect my solar system?

          The simple grid-connected solar system without batteries will shut down every time there is a blackout in your location. As your solar system also interacts with the grid and sends/receives electricity, this can create a risk of electrocution for the line men working on the grid. However, you can avoid power cuts by adding solar batteries to your home solar system. Such a system immediately switches to solar batteries during a blackout and saves you from having to live in the dark.

          Can I power my home solely through solar electricity?

          Although you have to stay connected to the grid to be eligible for a solar subsidy, you can still achieve absolute energy independence. Simply add solar batteries to your home solar PV plant so that your home becomes self-sufficient and draws power from the reserve instead of from the government grid. Your home solar system is connected with the net meter in a way that solar energy produced by your solar panels is the default source of power for your home. 

          During the dark hours when solar production is zero, then your home automatically draws power from available solar battery reserves. Your home only draws grid electricity from both of these primary power options when solar fails to meet your electricity requirements.

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