Residential subsidy makes no sense to you

Solar rooftop subsidy scheme hits you hard and gives a fear of missing out. It sounds great. And the idea of not paying anything to the electricity company for the unenforceable future , the possibilities , is mind bending. I love free. You love free. After all who wants to pay when the govt is paying. Yet there is nothing which is free - at least for residential solar rooftop schemes.

If you are depending on subsidy - you will gain only marginally with many risks

Subsidy for Residential Households

₹30,000

per kW

up to 2 kW

₹18,000

per kW

for additional capacity up to 3 kW

₹78,000

Total subsidy

for systems larger than 3 kW

Lets say you get your courage and install a 5kW system , it means you will qualify for a subsidy of INR 78,000 as per the above subsidy for home owners. But there is a catch - like always . To avail this subsidy , you will have to purchase Indian made panels with Indian cells. Smelling this opportunity , for which we can hardly blame brands , India manufacturers have jacked up the price so much that 80% of subsidy goes goes indireclly to the manufacturer. And you are the conduit for this subsody. Here is the what happens. Instead of paying say INR 2,50,000 for a 5kW system if there was no lacked up price , you have to pay INR 3,10,000 an increase of INR 1 lakh - INR 1.2 lakh.

The subsidy goes to Indian brands , indireclty , through you

Globally solar panels prices are at an all time low. A homeowner in Europe pays half for the price of solar panels than an Indian home owner. Yet this is the best time for you to install solar. Manufacturers get subsidy to set up solar cell line ( under PLI schemes ) , additional indirect subsidies from you by jacking the panel price. Sometimes I feel I am in the wrong company and it sounds more lucratuve to run a big solar manufacturing , pay almost zero from pocket , get all sort of subsidies , participate in the Indian stock market .