Switching to solar energy is an investment that delivers significant financial returns, reduces carbon emissions, and promotes energy independence. To encourage the adoption of clean, renewable energy sources like solar, the government of India has launched the Rooftop Solar Programme Phase II. Through this program, the solar panel subsidy in Madhya Pradesh offers substantial financial aid to homeowners and institutions installing rooftop solar systems. In this comprehensive guide, we’ll walk you through everything you need to know to apply for and benefit from the solar panel subsidy in Madhya Pradesh.
Overview of the Rooftop Solar Programme Phase II
The Rooftop Solar Programme Phase II is a national initiative managed by the Ministry of New & Renewable Energy (MNRE) to increase the adoption of residential solar power. Through this scheme, homeowners receive financial assistance to reduce the upfront costs of installing rooftop solar systems. The program aims to achieve 4 GW of residential solar capacity by 2024, with Madhya Pradesh playing a significant role in achieving this target.
Eligibility for Solar Subsidy in Madhya Pradesh
- Residential properties only: Subsidies are available exclusively for residential property owners. Commercial, industrial, and public-sector buildings are not eligible.
- Made-in-India components: Only solar panels with Indian-made photovoltaic cells are eligible, per the ALMM list by MNRE.
- On-grid systems: The subsidy applies to on-grid solar systems without battery backups.
- Empanelled vendors: Installation must be done through MNRE-registered vendors who follow government-specified technical standards.
National Solar Subsidy Rates in 2024
Subsidy rates under the Rooftop Solar Programme Phase II provide fixed financial assistance for each kilowatt (kW) capacity of rooftop solar installed. The subsidy structure is uniform across all states in India:
| System Capacity | Subsidy Amount |
| 1 kW | ₹30,000 |
| 2 kW | ₹60,000 |
| 3 kW and Above | ₹78,000 (Fixed) |
This means that a 3 kW system will qualify for a maximum solar panel subsidy of ₹78,000, in Madhya Pradesh which can help significantly reduce the installation cost. Learn more about PM Solar Yojana in India.
How to Apply for the Solar Panel Subsidy in Madhya Pradesh
The entire subsidy application process is now online, thanks to the National Portal for Rooftop Solar. This portal streamlines the subsidy process and allows applicants to monitor their application status.
Step-by-Step Guide
- Create an Account on the Portal: Visit the National Portal for Rooftop Solar and sign up using your mobile number and email.
- Submit Application: Fill out the subsidy application form, including details of the solar installation and bank account information for the Direct Benefit Transfer (DBT) of the subsidy.
- DISCOM Feasibility Check: Your application will be routed to your local DISCOM, which will assess your rooftop’s suitability for the solar installation and approve based on technical feasibility.
- Select an Empanelled Vendor: Once DISCOM approves, hire an MNRE-authorized vendor to install your rooftop solar system.
- System Inspection: After installation, a DISCOM official will inspect the system and install a net meter, essential for monitoring grid interactions.
- Subsidy Disbursement: Upon successful inspection and integration of the net meter, the subsidy amount will be transferred directly to your bank account within 30 days.
Benefits of Solar Panel Subsidy in Madhya Pradesh
Switching to solar not only reduces your carbon footprint but also makes financial sense. Here are some key benefits:
1. Reduced Electricity Bills
A rooftop solar system can reduce your monthly electricity bill substantially, with savings accumulating over the system’s 25-year lifespan. Solar energy becomes free after the system’s payback period of around 6-8 years, which means a long-term reduction in household energy costs.
2. Protection Against Power Outages
Madhya Pradesh residents often experience power cuts, especially during extreme weather. An on-grid solar system ensures an uninterrupted power supply by harnessing solar energy for most of your power needs, reducing dependence on the grid.
3. Opportunity to Generate Income
With net metering, any excess electricity generated by your system can be sent back to the grid, earning solar credits. These credits can be used to offset grid electricity costs, and any remaining credits at year-end may be settled in cash.
Calculating Solar System Costs in Madhya Pradesh with Subsidy
If you’re considering installing a solar panel system in Madhya Pradesh, understanding the cost breakdown, subsidies, and final investment can help make an informed decision. Here’s a look at the detailed costs for 2 kW and 3 kW rooftop solar systems in Madhya Pradesh before and after the subsidy.
1. Factors Affecting Solar System Cost
The overall cost of a solar system includes several variables:
- System Size: Larger systems have higher initial costs but offer greater long-term savings through increased energy production.
- Panel Quality: High-efficiency panels may have a higher price per watt but require fewer panels, potentially reducing installation and maintenance costs.
- Installation Complexity: Costs can vary depending on the structure, rooftop condition, and orientation, as well as the mounting requirements.
- Maintenance & Warranty: Routine maintenance is crucial for optimal solar performance. Most panels come with a 25-year performance warranty, while inverters and batteries often have 5-10 years. Government-approved vendors are mandated to maintain systems for five years post-installation.
2. Cost Breakdown for 2 kW Rooftop Solar System
A 2 kW system is ideal for homes with moderate energy needs, capable of offsetting a significant portion of monthly electricity bills. Here’s a cost breakdown before and after the subsidy:
- Cost of a 2 kW Solar System: ₹1,30,000 – ₹1,60,000
- Subsidy for 2 kW System: ₹60,000
- Final Cost After Subsidy: ₹70,000 – ₹1,00,000
This 2 kW system will cost less than ₹1,00,000 after the solar panel subsidy claim in Madhya Pradesh.
3. Cost Breakdown for 3 kW Rooftop Solar System
For households with higher power consumption, a 3 kW system is often more suitable, providing greater energy generation capacity. Here’s a cost breakdown:
- Cost of a 3 kW Solar System: ₹1,95,000 – ₹2,15,000
- Subsidy for 3 kW System: ₹78,000
- Final Cost After Subsidy: ₹1,17,000 – ₹1,37,000
A 3 kW system system will cost less than ₹1,40,000 after the solar panel subsidy claim in Madhya Pradesh.
Key Considerations for Solar Panel Subsidy in Madhya Pradesh
- Empanelled Vendors: Choose only MNRE-approved vendors for installation to ensure eligibility for the subsidy.
- Net Metering: Opt for net metering to benefit from solar credits and grid support during low solar production periods.
- System Sizing: Work with your installer to design a system that meets your household’s electricity needs without over-reliance on the grid.
Frequently Asked Questions (FAQ)
1. How much rooftop space is needed for a 1 kW system?
A 1 kW system typically requires 10 square meters of shadow-free space. However, space requirements may vary based on panel efficiency and mounting structure.
2. What are the benefits of net metering?
Net metering allows you to send excess electricity generated by your solar system back to the grid in exchange for solar credits, reducing your grid electricity costs.
3. Can power outages affect my solar system?
Grid-connected systems without batteries shut down during power outages. You can add solar batteries to ensure continuous power even during blackouts.
4. Is it possible to run my entire home on solar?
Yes, adding solar batteries to your system can make your home fully independent, using solar energy even during the night.
5. Is there any state sponsored subsidy for solar panels in Madhya Pradesh?
No. In Madhya Pradesh, the solar panel subsidy is available under the central government’s PM Surya Ghar Muft Bijli Yojana only.
Final Thoughts on Solar Panel Subsidy in Madhya Pradesh
With increasing energy prices and climate change concerns, adopting solar power is a smart choice for homeowners. In Madhya Pradesh the solar panel subsidy makes rooftop solar even more affordable and beneficial. The online portal simplifies the subsidy application process, and with the Direct Benefit Transfer scheme, you can quickly recover part of your investment. Don’t miss the opportunity to harness clean, renewable energy—start your application today and move towards a greener, more cost-effective future.
Get in touch with ZunRoof for free solar consultation. Stay tuned to our blog for more informative content.