The Government of India is pushing the goal of a “solar-powered green city” in every state, and it notes that the idea is in line with the global solar energy trends. Solar panel subsidy in Punjab is an initiative to make clean and green energy affordable and accessible. Like many other states, the residents of Punjab also have an opportunity to increase their savings by eliminating high electricity bills and their dependence on the government grid.
Is There Any Subsidy on Rooftop Solar in Punjab?
The Punjab State Power Corporation Limited (PSPCL) offers subsidy support for grid-connected rooftop solar systems of capacity ranging from 1 kW to 10 kW. It is expected that solar panel prices in Punjab after subsidy will be more affordable for the residential sector consumers.
The subsidy/Central Financial Assistance (CFA) for a rooftop PV solar system will depend on the capacity of your solar system and its benchmarked cost or on the cost calculated through a competitive process, if lower.
- For up to 3kW capacity of RTS system, the CFA applicable is 40% of the benchmark cost.
- For systems of capacity ranging from 3kW to 10kW, the user will be eligible for a CFA of 40% for the first 3kW capacity. The additional 20% CFA will apply to the rest of the capacity above 3kW (i.e. up to 7kW). Capacities exceeding 10kW will not receive any subsidy.
- The GHS (Group Housing Societies) / RWA (Residential Welfare Association) are eligible for availing 20% subsidy on benchmark cost, given that certain criteria are met. A single house can have a maximum 10kWp capacity of a rooftop solar plant. The total for the entire society should not exceed 500kWp.
It is important to note that power distribution companies (DISCOMs) are responsible for implementing the solar panel subsidy scheme in Punjab and other states. To be eligible for the above subsidies, your rooftop solar system must be installed by the vendors empanelled by PSEB.
Solar Subsidy Scheme in Punjab:
The solar subsidy by Punjab is available for the state residents who wish to switch to solar electricity.
For the domestic sectors, the Punjab State Power Corporation Limited (PSPCL) will provide a maximum of 40% subsidy on benchmarked costs for installing rooftop solar power under net metering. Net metering doubles the benefits of going solar by saving you money and enabling you to earn more of it. Homeowners will first use the electricity generated through a rooftop solar system as per their requirement, and PSPCL will adjust your generated power from the total consumption. The net metering rules, however, are subject to change.
The PSPCL also notes that the solar rooftop subsidy scheme is only available for residential homeowners, registered societies, multi-story apartment buildings, and cooperative group housing societies. Non-residential sectors like educational, PSUs, private commercial, social, or industrial sectors are not eligible to benefit from the solar subsidy for homes in Punjab.
Financial support for the country’s renewable sector is key to its goal for the clean energy transition. Although the current solar rooftop subsidy schemes are nearing the end of their allocation period, a new wave of support measures is likely to be . For these reasons, we can expect subsidy programs for the residential sector to continue for the foreseeable future.
Although the uptake of rooftop solar installations in residential sector has been slow, partly due to a lack of awareness about solar power and the subsidies available, the situation is expected to improve. As the state government strengthens its subsidy disbursement process, more houses will be solarized in the future.
Now is a great time to take advantage of the solar subsidy schemes for homes in Punjab. At HomeScape, we have years of expertise in installing aesthetically appealing highly durable grid-connected rooftop solar solutions customized to meet each homeowner’s needs. If you need help determining subsidized solar panel prices in Punjab for your residential space, we encourage you to book a consultation with us today.