By 2020, installing a solar electricity system for your home has become a smart and practical decision. One of the biggest reasons is the significant drop in the cost of solar equipment, including panels, which has made the initial investment more affordable than ever before.
Another major advantage is the financial support offered by the Government of India. In addition to central subsidies, many state agencies also provide additional incentives. For example, in special category states like the North-Eastern region, Jammu & Kashmir, Uttarakhand, Himachal Pradesh, Sikkim, and Lakshadweep, you can receive up to 70% subsidy. If your system is connected to the grid and you feed surplus power back into it, the Ministry of New and Renewable Energy (MNRE) offers even higher subsidies than the standard 30%.
Beyond subsidies, there are other benefits such as generation-based incentives, which reward you for the energy your system produces. Additionally, banks have been encouraged to treat solar installations as home improvement projects, allowing you to take out loans at rates similar to traditional home loans. Many public sector banks have already issued guidelines to their branches regarding this policy.
Setting up a solar system isn’t complicated, though the subsidy process might take some time due to administrative delays. The MNRE only provides subsidies if you purchase Indian-made solar panels. Once you choose a provider, they will assess your location and complete the installation within days. A top vendor like Genus can guide you through the entire process and ensure you get high-quality equipment. As a general rule, you need about 10 square meters of shadow-free space for a 1 kW system. Based on your energy usage, the installer will help determine the right system size for your needs.
If your roof doesn’t have enough space or is shaded by nearby structures, ground-mounted systems are a great alternative. These can be installed in open areas and still deliver excellent performance.
You might wonder how long it will take for your investment to pay off. The payback period is relatively short compared to the 25-year lifespan of a typical solar installation. Even if you move before that, your property value is likely to increase with a solar system in place. According to a study conducted in Madhya Pradesh’s metro cities, with average weather conditions and a 30% government subsidy, a 5 kW system can break even in 4-5 years, while a 3 kW unit may take around 7 years. Without any subsidy, the payback period is still reasonable—6 years for a 5 kW system and 7 years for a 3 kW unit.
When choosing between an off-grid and grid-connected system, consider your specific needs. An off-grid system is ideal for areas with frequent power cuts, as it includes battery storage to provide power during cloudy days or at night. However, batteries add to the cost and require periodic replacement. On the other hand, a grid-connected system eliminates the need for batteries. Your local utility grid acts as a backup, and with net metering, you can earn credits for the excess power you supply back to the grid. This option is best suited for areas with stable electricity supply.
If you’re not ready to make a large upfront investment, even with a short payback period, you might consider a Renewable Energy Service Company (RESCO). These companies handle the installation and maintenance, while you pay a fixed rate per unit under a Power Purchase Agreement. The RESCO then sells any surplus power back to the utility, making it a hassle-free option.
Whether you're looking for a simple upgrade or a long-term solution, going solar is a wise choice. To learn more and explore your options, visit Genus today.
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