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Solar Subsidy for the Residential Sector in Punjab 2024 | HomeScape

26 min read | By admin

The Government of India is promoting 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 the use of solar energy in commercial settings, it is ideal for installing solar in residential neighbourhoods, thanks to the progress in home solar systems. Now the residents of Punjab have an opportunity to increase their savings by reducing high electricity bills and their dependence on the government grid.

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    Solar System Price in Punjab with Subsidy

    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. The subsidy is expected to make solar panel prices in Punjab 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 10kW). 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 avail subsidy worth 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.

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      How to apply for Solar Subsidy in Punjab?

      Early this year, the Ministry of New and Renewable Energy (MNRE) issued a new simplified rooftop scheme to make the solar subsidy process easier for homeowners. Although the power Distribution companies (DISCOMs) will still be the point of contact for availing solar subsidies in Punjab, the homeowners will now have lot more options to choose their solar developer of their choice from the list of MNRE-authorised vendors on the National Portal.

      You can select any solar energy company which is registered on the National Portal for Rooftop Solar to design and install your home solar system. Once you have finalised the solar system for your home in Punjab, you can approach the local DISCOM to apply for the subsidy. All the processes are now happening online through the National Portal.

      You will be able to notify the DISCOM company about your solar system installation through the same online portal. The subsidy disbursement process will start once your application and the requested document are submitted. The greatest advantage for homeowners in this process is that they will directly get the settled subsidy payout in their own bank accounts within 30 days from installing their solar setup.

      What is Net Metering?

      When purchasing a rooftop solar panel system for your home, you will have the option to connect your system to the grid. If you have opted for a net-metered solar system, you will be eligible to apply for the government solar subsidy scheme and enjoy the benefits of net metering. 

      Net metering is a billing mechanism regulating grid-connected home solar systems. It allows homes that produce their own solar electricity to export unused power units to the government grid and earn solar credits which can be settled in the next billing cycle.

      The grid also makes up for your solar electricity shortfalls, particularly at night or on a cloudy/rainy day when your solar panels don’t receive ample sunshine. The provision of net metering will ensure that your energy demand is met through grid electricity when solar energy production is insufficient. The imported units can be counted against the credits you’ve banked during the month.

      Your monthly electricity bill can show a charge or even a positive credit balance based on the net of your energy contribution to the grid and the energy withdrawals from the grid. Hence, the name “net metering”. At the end of the year, if your annual billing shows a positive solar credit balance, the same will be paid out to you in cash as per the rate specified in the net metering provision.

      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.

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        Benefits of Net Metering

        Most solar experts advise favouring a grid-connected solar system as it increases the advantages of living in a solar-powered home. These benefits of net metering are:

        Additional financial credit and savings

        On days when your solar PV panels generate more energy than the daily electricity consumption needs, then the surplus units are sold to the grid for extra solar credits, translating to greater flexibility and more revenue for you.

        Eliminates the need for battery storage and backup generator

        Unlike off-grid solar systems, a grid-connected framework doesn’t require battery backup to store solar electricity, as any surplus production is fed to the utility grid under net metering. This makes your solar setup simpler and less expensive. Moreover, you can avoid paying for costly generators since the grid serves as a backup generator for your home.  

        Affordable and easy to maintain

        Home solar systems don’t demand a lot of maintenance efforts. Solar panels installed on your rooftop are covered with 25 years of performance warranty and are easy to maintain. Battery and generator require routine maintenance and replacements, but you can eliminate these components by opting for net metering. As a result, you can bring down the total cost of your home solar PV system and also reduce its maintenance requirements.

        The Complete Process for installing Solar System in Punjab

        To apply under the simplified rooftop solar scheme, you must first register on the national portal. This online portal can be accessed to keep up with the progress of your subsidy disbursement process, from the initial application to its tracking and approval. The Ministry also intends to set up separate portals for different regional DISCOMs, each linked to the national portal.

        The revised mechanism requires the beneficiary planning to get a home solar system first to submit an application for the same on the national portal. You will have to furnish relevant details and documents about the intended rooftop solar plant (RTS) installation along with the bank account details for the subsidy payout.

        The completed application will be assigned to the local DISCOM, and the status of your application can be tracked from the DISCOM portal. The approval is likely to be issued within the next 15 working days once the DISCOM ascertains the technical viability of your rooftop solar installation.

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          Once you have the approval, your chosen vendor can start the rooftop solar panel installation process. However, be mindful when selecting solar energy company for the installation and ensure that the solar modules fulfil the DCR conditions, and the company is registered on National Portal. Also, the manufacturers must be listed on the Approved List of Models and Manufacturers (ALMM) issued by the MNRE. Likewise, make sure your solar inverter is J3IS-certified.

          The approved application will also specify a limited timeframe for the beneficiary to install the rooftop solar plant, after which the application will be ineffective. If consumers fail to get their solar system set up by the prescribed date, they can re-apply via the same process.

          Once the solar setup is ready, the next step is to apply for net metering through the same national portal. The local DISCOM managing your application will arrange for net metering, wherein either the DISCOM or the beneficiary will be liable for procuring the net meter. All announcements throughout the process will be published on the portal.

          Lastly, the officer assigned by the DISCOM company will prepare a commissioning and inspection report, which the beneficiary can view on both the DISCOM and national portals. A positive report will approve your eligibility to receive the subsidy amount in your account.


          Financial support for the country’s renewable sector is key to its goal for the clean energy transition. Hence, we can expect subsidy programs for the residential sector to continue for the foreseeable future.

          Although the uptake of rooftop solar installations in the 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 by Amplus Solar, we have years of expertise installing aesthetically appealing, highly durable, grid-connected rooftop solar solutions customized to 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.

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            What is the cost of solar panels in Punjab?

            To understand how much a solar panel costs in Punjab for you, you need to factor in the type of solar plant and number of solar panels that make your rooftop solar PV system. An easy way to figure out the solar panel price for your home is to discuss your solar needs with an experienced solar installer near you, like HomeScape by Amplus Solar.

            Is there a subsidy for solar panels in Punjab?

            The solar subsidy in Punjab is available for the state residents who wish to switch to solar electricity for their domestic needs. The PSPCL 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.

            How much subsidy is available on solar panels?

            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 plants of up to 3kW capacity under net metering. If you pick a system of 3kW to 10kW capacity for your home, you can avail 40% for the first 3kW capacity and an additional 20% subsidy for the rest (up to 10kW).

            How can I get a solar subsidy in Punjab?

            Thanks to the MNRE simplifying the rooftop solar subsidy scheme for homeowners intending to get solar for their homes, you can select a home solar installer you see fit for your needs and later apply for subsidy online. For personalised guidance, HomeScape welcomes you for a one-on-one consultation to see how solar can be beneficial for meeting your energy needs.

            Which type of solar system is eligible for the subsidy?

            A solar subsidy is only applicable on grid-connected home solar plants (excluding the battery system, if any is opted for). The subsidy will be calculated based on the benchmark cost issued by the MNRE for different system capacities.

            How much time will it take to release the subsidy?

            You can expect to receive the subsidy amount in your account within 30 days from the day of solar system installation, considering that your online application has been duly approved.

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            Impact Of Basic Customs Duty Hike On Residential Solar

            10 min read | By Pankaj Mohanpuria

            In response to a long-standing demand from India’s solar manufacturing sector, the Ministry of New & Renewable Energy (MNRE) will implement Basic Customs Duty (BCD) w.e.f. April 2022. This move will protect domestic solar manufacturers from the stiff price competition from imported solar modules. Imposing a high tax rate will work in favour of the domestic solar industry in the short term as the price gap between imported solar components and locally-produced solar components will be be bridged.

            However, this is just one side of how this hike in basic import duty will impact India’s solar sector. The price of home solar systems is expected to rise as material costs across the supply chain become costlier. A home solar system comprises of solar panels, inverter, cables and mounting structure.

            Rise in the cost of solar modules is bound to increase the price of a home solar system as module price comprises more than 50% share of the price of the whole solar system. But in order to estimate how much the price is likely to increase, read more. 

            Upcoming Changes in Solar Equipment Prices

            India is chasing an ambitious goal of 280 GW of installed solar energy capacity by 2030. However, the country has been heavily dependent on imports so far. This has worked against the domestic solar manufacturers as several are on the verge of shutting down. China alone accounts for 80% of the total solar imports, while the rest consists of imports from Malaysia, Thailand, and Vietnam.

            The Ministry of New and Renewable Energy recognizes the urgency to protect domestic solar component manufacturers against stiff price competition from imported ones and reduce the dominance of low-cost imports in the Indian solar markets. 

            The Basic Customs Duty is a move that will help boost domestic manufacturing of solar components. As per the proposed duty structure, a basic customs duty of 40% on solar modules and 25% on solar cells will come into force on all solar imports starting April 1st, 2022. This tax imposition is expected to be a gamechanger for India’s Atmanirbhar Bharat vision. It will do away with the cost advantage that has allowed imported solar components so far to dominate Indian markets, providing Indian manufacturers a level playing field and the confidence to scale their capacity and performance.

            This has come after the BCD for imported solar inverters was raised from 5% to 20% effective from February 2nd, 2021.

            Impact of BCD Price Changes on Solar Industry

            Long after the expiry of Safeguard Duty in July 2021, BCD is set to take effect from April 1st, 2022, though the intent of this change was already shared by MNRE in early 2021. As a result, the industry will see a slight increase in solar power tariffs being offered to Commercial & Industrial customers due to expensive solar components.

            As per ICRA, the capital cost of a solar power plant project will increase by 23-24%. The official notification from MNRE also clarifies that there is no provision for exempting projects already auctioned. This is no brainer that the same price rise will happen for homeowners as well looking to purchase home solar plants for their house. 

            Apart from the low cost, the higher efficiency of imported rooftop solar panels is also another major factor why some of the developers and power producers prefer imported solar panels. But this is set to change as domestic solar manufacturers are also working on efficiency and ramping up their production capacities. Also, this hike in solar plant cost is anticipated to be a short-term disruption until local manufacturing achieves economies of scale and becomes even more efficient than the imported solar modules.

            To that end, BCD will create a supportive ecosystem for the domestic solar industry by providing relief against the competitive environment created by low-cost foreign imports, especially China. We should also note that import barriers can only be temporary measures. Eventually, domestic solar manufacturing will succeed only if we are able to compete in the global marketplace – in terms of price, technology, and scale.

            Why Get Solar for your Home Now ?

            The basic customs duty on solar components will be implemented from April 1st, 2022, meaning the current solar prices are still affordable. Hence, if you are planning to solarize your home in the near future, purchases made during this time will still come at old prices. 

            Moreover, there is the added benefit of the simplified rooftop solar subsidy scheme recently introduced by MNRE. This updated subsidy scheme allows homeowners to get solar from any developer of their choice and avail subsidy through a simple online application process. The solar subsidy can further bring down the cost of rooftop solar for your home by up to 40%. 

            Harness the energy of the sun to power your gadgets, air conditioning and heating systems, and your entire home with our custom residential rooftop solar systems from HomeScape by Amplus Solar. Our end-to-end home solar power solutions help reduce your energy costs by up to 90%. Designed for luxury and engineered for durability, our rooftop installations come with a 25 years warranty and the investment practically pays for itself in as less as 5 years.

            Our renewable energy solutions for homes also include add-ons like high-quality battery backups and a smart solar performance monitoring system to help you keep your solar plant’s health in check. If you want to learn about current solar panel prices, partner with HomeScape – one of the leading residential solar companies in India.

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