You can install a rooftop solar (RTS) system at your home for some relief. The central government provides a subsidy on the installation cost of grid-connected systems under its PM Surya Ghar Muft Bijli Yojana (PM Surya Ghar Yojana). Those with high power consumption can recover the installation cost within a few years’ time. That apart, it can give you the satisfaction of contributing to a cleaner environment.
What you essentially need is adequate roof space (a 1 kWp system requires 10 square metres) and the ability and willingness to bear the upfront installation cost. If you live in a flat, this may not always be the case.
Upendra Singh, ex-governing council member of the Bengaluru Apartment Federation, highlights a few challenges. “It’s very difficult to get all residents to agree to rooftop solar projects due to lack of awareness and the fact that additional funds have to be collected for this. While owners are more cooperative towards big-ticket investments, those who have rented out their flats are less interested,” explains Singh.
He also highlights structural issues.
“Weak structures or lack of terrace area can also pose a problem. Generally, taller buildings (10-15 floors) have less roof area in comparison with the number of housing units. This makes the investment unviable,” adds Singh.
Mint spoke with a few people who have RTS power systems at their homes (independent houses with their own roof space).
Make hay while the sun shines
Dhani Ram Gahlot, a retired bank manager, said he spent ₹1.2 lakh (after subsidy) on installing a 3.5 kWp (kilowatt peak, an indicator of maximum power capacity) RTS system at his house in Kurukshetra in Haryana in 2021. “I have already recovered this cost. Earlier, my electricity bill (for two months) in the summer months used to be around ₹35,000. With solar power, this has come down to ₹16,000,” he says. Gahlot’s family runs four ACs almost day and night. One of these provides cooling for his son’s crypto mining work.
Devansh Jain, a management student, spoke to us about the RTS system that his father, Sumit Jain, installed at their Indore home in January 2024. The family spent ₹2 lakh on a 3 kWp system. They received a subsidy of ₹78,000 later, which brought the final cost down to ₹1.2 lakh.
For Vishal Bedse, a Nashik-based investment advisor, the decision to go solar in May 2024 was driven more by social rather than purely financial motives. He wanted to do his bit for a cleaner environment. The family’s 3 kWp solar power system has been generating more power than they have been drawing from the state grid, resulting in nil or minimal power bills and accumulation of electricity credits.
To make the most of his investment in rooftop solar power, Bedse says his family has gradually made some shifts—from using a gas stove to an induction stove, and from using a petrol scooter to an electric one. Their next move is to buy an electric car.
Big savings in power bills
Thanks to their RTS installations, Gahlot’s and Jain’s families have managed to save quite a bit on electricity costs (see graphic for more details). Note that these systems supply solar power to the state grid (tracked by an output meter). For their own use, they draw power from the state grid (tracked by an input meter).
So, if there is a power cut, their solar power won’t serve as a back-up. “This is primarily done for economic or environmental concerns, and is not a reliability instrument unless paired with battery storage,” says Ashwin Gambhir, Fellow at Prayas (Energy Group), a non-profit organization focussed on energy sector research.
In Jains’ case, however, the RTS system directly powers a few of their heavy electronic appliances (backed by battery storage) and the rest of their needs are met from the state power grid (backed by an inverter with battery to support a few fans and lights).
In all three cases, the household pays for their net consumption (power drawn from the state grid minus the solar power supplied to the grid). If a household produces more power than it consumes, electricity credits get generated, which get adjusted against future consumption. Finally, if there are any accumulated credits remaining at the end of the year, the consumer gets paid for these at a rate fixed by the state.
How to get the subsidy
To encourage more and more people to adopt solar power, the central government has been offering subsidy on the installation cost under the PM Surya Ghar Yojana. The scheme was launched in February 2024 and subsumed other existing subsidy schemes under it. You can get a maximum subsidy of ₹78,000 under the scheme (see graphic). You can apply for a rooftop solar power system on the PM Surya Ghar website (https://pmsuryaghar.gov.in). This involves signing up, checking for the feasibility of your rooftop, selecting a vendor and so on until you finally place a subsidy request.
Most people we spoke with instead straightaway approached a vendor based on recommendations from friends and family. The vendor took care of the online registration. In Gahlot’s case, the vendor billed him after deducting the subsidy amount. Bedse and Jain, on the other hand, paid the full cost to their vendors. They received the subsidy from the state power distribution company (discom) later in their bank accounts.
Note that, the subsidy applies only to on-grid RTS systems, that is, those connected to the state grid. Also, you can avail of the subsidy only once. Gahlot is considering increasing his existing RTS capacity. But as he points out, he won’t be eligible for a subsidy this time.
Whom does it make sense for
In the end, the decision to opt for an RTS system is largely a function of your power consumption. Those with significant power consumption are likely to fall in the higher power tariff slabs of their state discom. For such consumers, solar power can be a cost-effective option. They can recover the installation cost within a few years.
On average, an RTS system generates around 120 units of power per month for every kWp of capacity installed. It has a life of at least 25 years, though exposure to sun and other environmental factors impacts the generation efficiency over time.
According to Gambhir, an RTS system may not make sense for someone consuming fewer than 100 units a month. “At that consumption level, you may be able to buy cheaper electricity from your discom depending on the tariff structure,” he says.
