Solar Panel Subsidy in Punjab, 2024

In a solar rooftop system, the solar panels are installed in the roof of any residential, institutional, social, Government, commercial, industrial buildings etc. This can be of two types (i) Solar Rooftop System with storage facility using battery, and (ii) Grid Connected Solar Rooftop System.

All consumers of electricity having electricity sanctioned load more than 1.25 Kw who intend to generate their own electricity and contribute towards environmental protection can install Solar PV plants on Roof-Tops/ Open area of Individual households, Industries, commercial establishments, institutions, residential complexes, Schools, Colleges, Hospitals, sheds, cold stores, govt. and semi-govt. buildings, etc. 

How & how much subsidy on solar can be availed? 

Subsidy/Support is available from Central Government through MNRE.

The subsidy available on the installation of grid-connected solar rooftop power plants is 30% of the benchmark cost. Government institutions including PSUs shall not be eligible for the subsidy. Instead, they will be given achievement-linked incentives/awards. All residential and institutional buildings such as schools, health institutions, etc. and the social sector can avail CFA.

Benchmark cost of Grid Connected Solar System as per the Central Government of India, MNRE - Last Updated, January, 2022

Amount of Subsidy available?

Central Financial Assistance (CFA)/ Subsidy for Grid Connected Rooftop Solar Plants under Net Metering will be provided by Punjab State Power Corporation Limited (PSPCL) from capacity 1 to 10 Kw as per MNRE, GOI new notification dated 08.03.2019. CFA will be provided subject to availability of funds from MNRE,GOI.MNRE, GOI provides maximum 40% subsidy on installation of Rooftop solar power plants in domestic sector institutions as detailed below.

For other sectors e.g. social/institutional/govt. /commercial/industrial etc. no CFA (subsidy) will be provided

• The residential sector users may install RTS plant of even higher capacity as provisioned by respective State Electricity Regulations; however, the CFA will be limited up to 10 KWp capacity of RTS plant.
• 20%CFA for GHS/RWA capacity upto 500 KW (limited to 10 KW per house and total upto 500 KWp)

Who are eligible vendors for subsidized projects?

Only the vendors which are empanelled by PSPCL are eligible to install projects in subsidized projects. However for non-subsidized projects empanelment is not required.

What is the minimum warrantee period envisaged under the scheme?

Solar PV modules used in solar power plants /systems must be warranted for their output peak watt capacity, which should not be less than 90% at the end of 10years and 80% at the end of 25years.

The mechanical structures, electrical works including power conditioners/inverters/charge controllers/maximum power point tracker units/distribution boards/digital meters/switch gear/storage batteries, etc. and over all workmanship of the SPV power plants/ systems must be warranted against any manufacturing/ design/ installation defects for a minimum period of 5 years.

Payment of solar projects

The eligible consumer interested in installing solar project in his premises will make payment to empanelled vendor after deducting subsidy (CFA) amount from the total invoice amount. The consumers are advised not to pay 100% advance payment to the companies for installation of roof top solar power plant and fix terms and conditions of the payment and sign an agreement in this regard. The receipt of the payment must be taken.

Responsibility of solar system

The consumers shall be fully responsible for purchase and installation of their systems and PSPCL shall not be held responsible for any kind of deficiency / laps in the goods and services.

Who Can Install?

All consumers of electricity having electricity sanctioned load more than 1.25 Kw who intend to generate their own electricity and contribute towards environmental protection can install Solar PV plants on Roof-Tops/ Open area of Individual households, Industries, commercial establishments, institutions, residential complexes, Schools, Colleges, Hospitals, sheds, cold stores, govt. and semi-govt. buildings, etc.

What is Net Metering?

Net metering is the process through which you attain a “dual-benefit “by installing a solar power plant on the roof, open space of the building to generate electricity. Generated power is first used in the building as per the requirement and the surplus power is fed to the grid of utility (PSPCL).

Know Your Capacity Range

Under Net Metering Policy, Solar PV Power Plants of capacity ranging from 1KW to 1MW can be installed. The maximum capacity of solar power plant to be installed in a building would be 80% of the sanctioned electricity load of that building. Capacity of required plant shall be calculated as under :

• Total annual electricity consumption of house/building = ……KWh = (A)
• Per day electricity consumption = A/365 = (B)
• Actual Plant capacity = B/4 = …...KW

Do You Want To Install?

Under Net Metering Policy, All eligible consumers of electricity in the area of the supply of distribution licensee can participate in the solar rooftop net metering arrangement subject to target capacity.

• The system must be installed in consumer’s premises.
• The maximum capacity of rooftop solar system shall not exceed 80% of the sanctioned load (kW) or contract demand of the consumer (in kVA converted to kW by using a power factor of 0.9).
• Provided that the installed capacity shall not be less than 1 kWp and shall not exceed 1MWp (AC side) for a single eligible consumer

Download an original document from here.

What is the entire process?

To apply solar subsidy, you should follow the following steps:

Step 1: Site Survey. Book Engineer Visit from here.

Step 2: System Capacity, Costing & Performance Analysis

Step 3: Buy Solar System & Installation

Step 4: Apply for Net Metering

Step 5: Get Solar Subsidy after 30 days of rooftop solar panel installation 

Source: PSPCL