1kW solar panel price government subsidy

What is the PM Surya Ghar Subsidy for a 1 kW Solar System?

Current Framework:

The Government has already announced that they will provide you with a direct subsidy through DBT in your Bank Account.

  • For every 1 kW, Central Subsidy = ₹30,000 (fixed rate of ₹30,000 per kW for first 2 kW)
  • Some States also offer Top ups. E.g. In UP, you will get Top up of ₹15,000 etc.

Important Rule - This includes government subsidies which applies on On-Grid & Hybrid System having connection of Electricity DISCOM Grid. So standalone off-grid system along with battery bank will not get this subsidy from central.

1 kW Solar Panel Price Breakdown (Before & After Subsidy)

Baseline Cost of 1kW On-Grid Solar System consisting of Mono PERC / TOP Con Panels, Grid Tied Inverter, Mounting Structure, Wiring & Installation costs around ₹ 55,000 to ₹70,000 based on Technology and Vendor Selected.

Financial Snapshot

Parameter Estimated Range (INR)
System Cost (Pre-Subsidy) ₹55,000 - ₹70,000
Central Government Subsidy - ₹30,000
Net Out-of-Pocket Cost ₹25,000 - ₹40,000
Daily Power Generation ~4 to 5 Units / Day
Monthly Bill Savings ₹800 - ₹1,200
Expected Payback Period 3.5 - 5 Years

What Can You Run on a 1 kW Solar System?

A 1 kilo Watt solar system generates a good amount of power and can create between 120 to 150 units per month, requiring around 50 sq. ft. of open rooftop space.

Typical Household Load Handled:

  • 4-6 LED Bulbs & Tubes
  • 2-3 Ceiling Fans
  • 1 Refrigerator
  • 1 Smart TV & Laptop/Phone Chargers
  • 1 Water Pump (0.5 HP, during peak solar generation hours)

Note: 1.5-ton air conditioners/ High-surging heavy appliances can’t run on a basic 1 kW setup and will require additional load bearing systems.

How to Apply for the 1kW Government Subsidy

Applications to claim the subsidy will have to go through the official process on the government portal. Here are the steps you need to take:

  • Portal registration: You’ll have to visit the official portal (https://pmsuryaghar.gov.in/) of the scheme, then fill up all details including mobile number, state, DISCOM, and electricity consumer account number.
  • Feasibility Approval: Then, apply for rooftop solar installation and wait for approval for technical feasibility by the DISCOM operating in your region.
  • Choose a Registered Vendor: You should select an MNRE-registered ( Ministry of New & Renewable Energy ) vendor. He will procure and install the system as required. The solar panels should be in-line with the government guidelines of Domestic Content Requirement (DCR).
  • Net Metering & Inspection: Once installation finishes, file for net metering. A DISCOM official will inspect the installation and install the net meter.
  • Subsidy Disburse: This will be released into your Aadhar linked Bank Account. It will take 30-45 Days after the Commissioning & Uploading Of Project Completion report has been done.

Read our detailed guide for a step by step process of applying for Solar Subsidy in J&K

Critical Factors That Affect Eligibility

Common mistakes that lead to application rejections and should be avoided are using non-DCR panels, hiring unregistered vendors, and name mismatches:

  • Non-DCR Panels: Using imported or non-ALMM listed solar modules disqualifies the installation and subsidy from central financial assistance.
  • Unregistered Vendors: Hiring unregistered, local electricians/ technicians prevents vendor verification on the national portal, making you ineligible for the subsidy.
  • Discrepancy/Mismatch in Name: There should be no discrepancy/mismatch in your name. Your Aadhar, Bank account and electricity bill should have the same name.

Frequently Asked Questions (FAQs)

The Central Government subsidy, given on installation of 1kW capacity residential solar rooftops is Rs. 30,000/- (under PM Surya Ghar scheme). Additionally some State Governments also give certain additional top-ups.
Government subsidies can be given only if your solar system is Grid Tied (On-Grid)/Hybrid Rooftop System having Net Metering capability. You cannot get government subsidies if you have an Off-Grid Solar System (with Battery Banks).
After passing the inspection of DISCOM net-meter, once you receive the commissioning certificate, the subsidy will be transferred into your Aadhaar linked Bank account by way of Direct Benefit Transfer within a period of 30-45 Days.

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Conclusion

Now that you understand how this 1 kw solar panel price government subsidy works together, you can easily switch over to green energy.

With all the costs of the solar panels being covered by both the Central & State Governments (effective amount from ₹25,000 – ₹40,000), your installation will break even on the capital cost in just 4 years, and then supply free power for 20+ years.

Just check out what is the size of your rooftop, pick up an empanelled vendor, and apply for a subsidy through the official website PM Surya Ghar.