Switching to solar energy is more than just a trend; it’s a significant step toward sustainability and financial savings for housing societies. With increasing electricity costs and rising environmental concerns, solar energy offers a win-win solution. By leveraging rooftop space to generate clean, renewable energy, housing societies can drastically reduce their power bills while contributing to a greener future.
In this comprehensive guide, we’ll walk you through everything you need to know about solar installation for housing societies, including the eligibility criteria, documentation requirements, financing options, and the process of securing government subsidies.
Why Solar for Housing Societies?
Solar installations for housing societies aren’t just a smart financial move—they’re a long-term investment in sustainability. Societies across India have already experienced significant reductions in electricity costs and carbon footprints by making the switch to solar energy.
Take, for example, a society in Delhi that saved over ₹45 lakhs within five years after installing a solar rooftop system. This example highlights the immense potential of solar installations to cut costs while promoting cleaner energy use.
Here’s a closer look at the benefits:
Key Benefits of Solar Installation for Housing Societies
- Reduced Electricity Bills: Solar energy allows societies to generate their own electricity, resulting in significant reductions in utility bills.
- Government Subsidies: The PM Surya Ghar Muft Bijli Yojana offers attractive subsidies, making solar installation more affordable for housing societies.
- Environmental Impact: By adopting solar, societies contribute to reducing greenhouse gas emissions and lowering their carbon footprint.
- Energy Independence: Societies can reduce reliance on the grid by producing and consuming their own electricity, especially during peak hours.
- Increased Property Value: A solar-powered society is an attractive feature for potential buyers, adding value to properties within the complex.
Eligibility Criteria for Solar Installation in Housing Societies
Before diving into solar installation, your housing society must meet certain eligibility criteria. The process involves regulatory approvals, compliance with local laws, and fulfilling the financial and technical requirements set by the government or financing institutions.
Key Eligibility Factors:
- Right to Use Roof Space: The society must have legal ownership or rights to use the roof for solar installation.
- Registered Housing Society: The society must be a registered legal entity under local laws, which typically requires a valid Society Registration Certificate.
- Consent from Society Members: Approval from the society’s members during the Annual General Meeting (AGM) is often required to move forward with the project.
Documentation Required for Solar Installation and Subsidies for Housing Societies
To apply for government subsidies or financing, housing societies need to submit specific documents. These documents ensure that your application meets the regulatory standards and qualifies for financial support.
Documents Required:
- Latest Paid Electricity Bill: Proof of electricity consumption and connection.
- Society Registration Certificate: To confirm the legal status of the housing society.
- Copy of Aadhaar Card and PAN Card: Both the society’s authorised representative and the society itself need to submit these documents.
- Property Ownership Documents: Including property tax receipts or registry copies to prove ownership of the rooftop.
- Authorisation Letters: Authorising certain individuals to represent the society in solar-related matters.
- Society PAN Card: Essential for tax and financial purposes.
- Bank Account Details: For subsidy disbursal or financing purposes.
- No Objection Certificate (NOC): From municipal corporations, if required by local laws.
- Society Bylaws: To confirm that the installation is allowed under society rules.
Different states may require additional documents, so it’s important to check with your local energy department or the solar vendor for state-specific regulations.
Solar Subsidies for Housing Societies
The Indian government offers generous subsidies to promote solar adoption, making it easier for housing societies to transition to renewable energy. Under the PM Surya Ghar Muft Bijli Yojana, societies can avail of subsidies to offset the initial installation cost.
Steps to Apply for Solar Subsidies:
- Registration: Register your housing society on the National Portal for Rooftop Solar.
- Submission of Documents: Upload the required documents, including proof of identity, roof ownership, and electricity bills.
- Installation and Commissioning: Once the application is approved, hire an approved vendor to install the system. Apply for net metering to send excess energy back to the grid.
- Subsidy Disbursal: After installation, submit your bank details to receive the subsidy directly in your account.
How Much Subsidy Can You Avail?
Housing societies can receive subsidy up to ₹18,000 per kilowatt, with a maximum of ₹90 lakhs for installations of up to 500 kW under the PM Surya Ghar Muft Bijli Yojana. The exact subsidy amount depends on the size of the installation and the state’s policies.
Financing Options for Solar Installation in Housing Societies
One of the major concerns for societies considering solar is financing. Fortunately, there are multiple ways to fund solar installation without putting undue strain on society’s budget.
1. Corpus Financing:
Housing societies can tap into their corpus fund or reserves to finance the solar installation. This method requires approval from society members during the AGM, where a formal resolution is passed to authorise the use of society funds for the project.
2. Overdraft (OD) Facility:
If the society has a good credit history, they can negotiate an OD facility with their bank. This allows the society to borrow against their existing cash flow at competitive interest rates. The society needs to provide documents like financial statements, credit reports, and the project proposal to secure an OD.
3. Vendor Financing:
ZunRoof, a trusted and experienced solar vendor, offers financing options tailored to housing societies. To discuss further, you can get in touch with us and let us handle all the hassle. From bank loans to subsidy approvals, we handle the hassle while you count your solar savings.
Process of Solar Installation for Housing Societies
Step 1: Feasibility Study and Approvals
The first step is to conduct a site assessment to evaluate the technical feasibility of installing a solar system on your rooftop. After that, you’ll need approval from the local DISCOM (Distribution Company) and the society’s members.
Step 2: Vendor Selection
Choose a reputable solar vendor like ZunRoof to ensure quality installation and after-sales service. Ensure the vendor is registered with the National Portal for Rooftop Solar to claim subsidies.
Step 3: Installation and Commissioning
Once you have approvals in place, the vendor will install the solar panels, inverter, and other necessary components. After installation, the DISCOM will inspect the system to ensure compliance with local standards before providing a commissioning certificate.
Step 4: Apply for Net Metering
Net metering allows the society to send excess electricity back to the grid and receive credits, further reducing electricity bills. Your solar vendor will help you apply for net metering with your DISCOM.
Step 5: Maintenance and Monitoring
Solar rooftop plants setup require minimum maintenance in the form of simple cleaning and dusting of the panels. Regular cleaning ensures optimal performance of your solar power plant. In case of any technical fault, ZunRoof promises 48 hours service ensuring smooth and efficient working of your solar setup.
Solar Installation Payback Period for Housing Societies
The breakeven point for a solar installation depends on factors like the system’s cost, energy production, and electricity rates. Typically, a housing society can recover the cost of installation within 3 to 5 years, depending on the size of the system and the amount of subsidy received.
Example Calculation:
For a 100 kW solar system costing approx ₹65,00,000, and after receiving a subsidy of ₹18,00,000, the net cost would be ₹47,00,000. With average annual savings of ₹12,00,000 (based on energy production and electricity rates), the breakeven point would be around 4 years.
Tips for Securing Approval from the RWA
Getting approval from your RWA is a crucial step in the solar installation process. Here are some tips to ensure smooth approval:
- Educate Members: Present clear information on the benefits of solar energy, including cost savings and environmental impact.
- Form a Solar Committee: Appoint members with expertise in finance, project management, and engineering to oversee the project.
- Provide a Detailed Proposal: Include estimates from vendors, financial benefits, and a timeline for installation and savings.
Make the Switch to Solar with ZunRoof
Choosing solar for your housing society is a step towards sustainability, financial savings, and energy independence. With a proven track record of successful installations, ZunRoof is your ideal partner for solar installation. Our easy EMI options and extensive experience ensure that your society benefits from hassle-free installation, maximum subsidies, and long-term savings.
Start your journey to a greener future—contact ZunRoof today to schedule a free consultation and take the first step toward solar energy!
FAQs
Q1. How long does it take to install a solar system for a housing society?
The entire process, from approvals to installation, typically takes around 12-20 weeks.
Q2. Can housing societies apply for solar subsidies?
Yes, under the PM Surya Ghar Muft Bijli Yojana, housing societies can apply for subsidies of up to ₹18,000 per kilowatt.
Q3. What is net metering, and how does it work?
Net metering allows societies to send excess solar energy back to the grid in exchange for credits on their electricity bills.
Q5. What kind of maintenance does a solar system require?
Regular cleaning and inspection of panels and the inverter ensure optimal performance. Most vendors, including ZunRoof, offer maintenance services. If you are looking to get a solar rooftop for your housing society, then you need to get in touch with us. Stay tuned to our blog for more informative content.