The growing interest in green energy solutions has led to increased awareness of solar rooftop panels in Indian homes. However, despite the ambitious target of installing solar panels in more than 10 million homes under the Pradhan Mantri Suryodaya Yojana announced by Prime Minister Narendra Modi on January 22, the country’s progress on this front has not been spectacular, with only 700,000-800,000 currently installed. Electricity is available in homes only through solar energy.
“Since 2016, rooftop solar (RTS) capacity in India has increased by 2.7 GW. The Ministry of New and Renewable Energy (MNRE) launched the Rooftop Solar Program Phase-II in 2019 with the target of achieving 40 GW rooftop solar With the launch of Pradhan Mantri Suryodaya Yojana (PMSY), we expect faster adoption of solar energy.
Having said that, RTS adoption has not gained the desired momentum due to two reasons – lack of awareness among people and non-availability of easy RTS finance. However, we are hopeful that with government support, demand and adoption of RTS will increase,” said Vikas Aggarwal, co-founder and chief business officer of Credit Fair, a consumer lending fintech start-up looking to set up Offers personal loans for Rs. RTS at interest rate of 8-10%. Credit also offers fair no cost EMI.
“We have contributed in installing panels in more than 2,000 homes so far. Currently around 7-8 lakh homes have solar power. And as per the vision of the Government of India and PM Modi we will provide 1 million residential rooftop solar power across the country. Are committed to contribute in the next 5 years,” Agarwal said.
Photovoltaic panels, commonly known as rooftop solar panels, are installed on the roofs of buildings and connected to the main power supply unit. This installation reduces reliance on grid-connected electricity, resulting in cost savings for consumers. In solar rooftop system, the expenses involved are initial capital investment and maintenance costs.
Break even cost
How much does it cost to install a solar rooftop? The cost for an average home requiring 3 kW – 5 kW installation can range from Rs 2.20 lakh to Rs 3.5 lakh. Interestingly, this cost can be managed through a manageable EMI of around Rs 4000 -5000 per month, equivalent to the electricity bill, thereby reducing the financial burden on consumers.
With easy financing through Credit Fair, the consumer can pay easy EMIs of only Rs 4,000 to Rs 5,000 per month. Agarwal of Credit Fair said, we try to keep the EMI at par with the electricity bill, so that there is no additional burden of EMI on the consumer.
Navitas Solar said in a LinkedIn post that the average electricity consumption per month for a 3kW solar plant is 360 units or kWh. Whereas to install a 3kW solar plant, approximately 300 square feet of shade-free space will be required. Therefore, the total annual savings from a 3 kW solar plant will be Rs 30,240. A 3kW solar system typically costs around Rs 1,22,979 without subsidy.
However, 40% subsidy is provided by the government for residential roofing. Therefore, with subsidy, the same system would cost around Rs 73,787. Various other factors like increase in grid electricity tariff rates, availability of financial incentives, net metering and ease of installation with EPC also influence the calculation of payback period. However, generally, the payback period for a solar system is 2-3 years.
The entire process is made more financially sound through the concept of net metering, where any excess energy generated by solar panels is fed back into the grid, giving users a credit to offset future utility bills. Is. It reduces the overall electricity bill to a great extent by balancing contribution and consumption.
To reduce the setup cost, the government also provides subsidies. Homeowners and housing societies can avail Rs. 9,000 to Rs. ₹ 18,000 per kW for installing rooftop solar systems up to 10kW under Rooftop Solar Program Phase – Ⅱ.
“Digital lenders are facilitating the installation process by partnering with local installers and ensuring quick, easy loan disbursement. For example, Credit Fair has helped finance over 2300 roofs so far, which Proves the success of the initiative.
These programs have also had a significant impact on the environment, cutting carbon emissions by more than 13,000 tons – the equivalent of planting more than 500,000 trees. Additionally, they have saved approximately Rs 12 crore in annual electricity costs, highlighting their economic benefits.