Solar energy to generate own electricity: how beneficial, even earn extra income? how to get it? How to avail Indian Govt. subsidy? All Answers in this article...

Dear friends, 

I thought to write on this topic as it's a part of Real estate or construction industry and may help many stakeholders be it individual consumers, co-operative societies to save on electricity bill or builder to offer it's projects with this great saving feature to attract more buyers or investors to take benefits with growth & appreciation ultimately.

if you have open roof top spaces in your house or building or premises then this article is very useful to know and understand how you can generate electricity through solar (sun) which is almost free for lifetime once installed on your premises. even it may be a source to earn extra income for unused surplus generated electricity at your premises. even Indian government is currently offering subsidy to reduce cost of solar installation so it's really a great opportunity to avail it. In the 21st century solar energy is expected to become increasingly attractive as a renewable energy source because of its unlimited supply and its nonpolluting character, in stark contrast to the finite fossil fuels coal, petroleum, and natural gas.

Here, i am trying to explain all aspects of it, hope it will be helpful..

What is solar energy?

Solar energy is the radiation from the Sun capable of producing heat, causing chemical reactions, or generating electricity. The total amount of solar energy received on Earth is vastly more than the world's current and anticipated energy requirements. If suitably harnessed, solar energy has the potential to satisfy all future energy needs.

What are the common uses of solar energy?

Solar energy is commonly used for street light, house light, solar water heaters and house heating. The heat from solar ponds enables the production of chemicals, food, textiles, warm greenhouses, swimming pools, and livestock buildings. Cooking and providing a power source for electronic devices can also be achieved by using solar energy. 

Why is an expansion of solar energy important for India?

India is expected to witness the largest energy demand growth of any country or region in the world over the next 30 years, according to the latest World Energy Outlook by the International Energy Agency (IEA).

To meet this demand, the country would need a reliable source of energy and it can’t be just coal plants. Although India has doubled down on its coal production in recent years, it also aims to reach 500 GW of renewable energy capacity by 2030.

How is solar energy collected?

Solar energy, radiation from the Sun capable of producing heat, causing chemical reactions, or generating electricity. The total amount of solar energy incident on Earth is vastly in excess of the world’s current and anticipated energy requirements. If suitably harnessed, this highly diffused source has the potential to satisfy all future energy needs.

How Beneficial Solar energy?

The potential for solar energy is enormous, since about 200,000 times the world’s total daily electric-generating capacity is received by Earth every day in the form of solar energy. Unfortunately, though solar energy itself is free, the high cost of its collection, conversion, and storage still limits its exploitation in many places. 

Electricity generation through Solar panels

Solar radiation may be converted directly into electricity by solar cells. In such cells, a small electric voltage is generated when light strikes the junction between a metal and a semiconductor or the junction between two different semiconductors. The power generated by a single photovoltaic cell is typically only about two watts. By connecting large numbers of individual cells together, however, as in solar-panel arrays, hundreds or even thousands of kilowatts of electric power can be generated in a solar electric plant or in a large household array. 

Where Solar can be installed?

Solar panels can be placed on the top of building or independent house i.e. rowhouses or bungalow's roofs or even flat/apartments empty balcony areas to generate electricity. Such a system is called a rooftop solar system. Electricity generated from the rooftop solar system can be used to meet the buildings' energy demand, charge batteries for later use, or can be exported to the electricity grid. Apart from the solar PV panels, a rooftop solar system also has other components such as an inverter, module mounting structure, wires and cables, monitoring and safety equipment, and meters, etc.

How to earn extra income by selling surplus generated electricity (Net metering)?

In the case of grid-connected electricity consumers using rooftop solar systems, “net metering” is a mechanism that allow them to first consume the electricity generated from the rooftop system and then export surplus energy, if any, into the grid. Thus, the intake of electricity from the grid reduces. At the time of electricity bill generation, the consumers are billed only for the net electricity they have consumed i.e., the difference between the electricity they have consumed from the grid and the surplus electricity they have exported to the grid (from the rooftop solar system).

 Let us illustrate the reduction in electricity bill through solar rooftop connected via net metering 

through an example: Suppose a consumer has installed 1 kWp rooftop solar system on its premises. Let us further assume that average residential grid tariff is Rs. 5 per kWh or unit and daily solar power generation is 4 kWh or units per day per kWp. Then, two cases arise: 

Case-1: Monthly consumption is more than solar generation 

Suppose the monthly consumption of consumer is 150 kWh (energy cost 150 X Rs. 5 = Rs. 750/-) and monthly generation from solar would be 30 days x 4 kWh= 120 kWh. Then the net units consumed for a month = 150 kWh – 120 kWh = 30 kWh. Accordingly, under Net metering policy, the consumer will be charged for 30 units only i.e. 30 x Rs. 5 = Rs. 150 (Total saving is Rs. 600/- per month in electricity bill). 

Case-2: Monthly consumption is less than solar generation 

Suppose the monthly consumption of consumer is 100 kWh and monthly generation from solar would be 30 days x 4 kWh= 120 kWh. Then, net units consumed = 0 and net units exported to the grid = 20 units. Therefore, consumer will not be charged for any units. Further, the DSICOM may or may not pay him for 20 units exported to the grid based on state regulations. However, the consumer will always have to bear the fixed charges, irrespective of any import/export of units.

Business Models: How to install Solar plant on your premises?

The Solar rooftop PV systems can be set up under two business models: CAPEX and RESCO: 

1. CAPEX model: In the CAPEX model, the entire investment comes from the power consumer. The consumer hires a solar engineering, procurement, and construction (EPC) company, which provides turnkey installation of the entire solar power system and hands over the assets to the consumer. The company may also take care of annual plant operation and maintenance (O&M) for a limited period depending on mutually agreed cost and terms. 

2. RESCO model: In RESCO model, an investor or project developer as a renewable energy service company (RESCO) invests in CAPEX and the consumer pays for the energy consumed from the dedicated solar power set up. Both consumer and developer sign a longterm power purchase agreement (PPA) for an agreed tenure and tariff. RESCO Model is better suited for Large Rooftop Solar Capacities to be installed on Government Buildings, Private offices, Industries etc.

How to avail Indian government subsidy (Residential premises only)?

The entire Procedure to apply for Roof Top Solar along with subsidy structure under the new simplified procedure is available on the Ministry’s website: “solarrooftop.gov.in” (under the tab “Simplification Procedure”). 

Procedure for the consumers to install Rooftop Solar

1. Register at National Portal www.solarrooftop.gov.in and submit application. At the time of application, beneficiary will be informed about the complete process and subsidy amount that can be availed for installation of rooftop solar plant. 

2. The application will be forwarded online to the concerned DISCOM for issuance of technical feasibility. The DISCOM will issue technical feasibility within next 15 days. 

3. After issuance of technical feasibility, the beneficiary can install the rooftop solar plant through any of the registered vendors. List of registered vendors will be displayed on the portal. 

4. After installation of rooftop solar plant, the beneficiary will submit plant details on the portal and apply for net-metering. The application for net-metering will be forwarded online to the concerned DISCOM. 

5. Upon installation of the net-meter and successful inspection of the plant, commissioning certificate would be generated online by DISCOM. 

6. Once the commissioning certificate has been received, the beneficiary will submit bank account details on the portal along with copy of cancelled cheque. Central government subsidy will be credited directly into the bank account of the beneficiary within 30 working days of receipt of the bank account details. 

Pradhan Mantri Suryodaya Yojana (Prime minister Solar Subsidy policy)

great push by prime Minister Narendra Modi on Monday (January 22, 2024) announced the ‘Pradhan Mantri Suryodaya Yojana’, a government scheme under which one crore households will get rooftop solar power systems.

This isn’t the first scheme for promoting the installation of rooftop solar power systems, though. In 2014, the government launched the Rooftop Solar Programme that aimed to achieve a cumulative installed capacity of 40,000 megawatts (MW) or  40 gigawatts (GW) by 2022  However, this target couldn’t be achieved. As a result, the government extended the deadline from 2022 to 2026. The Pradhan Mantri Suryodaya Yojana seems to be a new attempt to help reach the target of 40 GW rooftop solar capacity so let's have maximum benefits of the subsidy scheme which saves handsome money. 

if  you want to know more about it, can contact me to discuss in detail as it's surely a great learning if can assist practically to install it on on your premises. here, intention is to share knowledge & our experience for betterment of all or if someone has already installed solar plant availing this govt. subsidy, then can share their experience in comment which will be a great help to all aspirants looking similar work to be done in their premises.

Information Source: Online.

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hope able to explain our point of view, still any query, please contact anytime on given contact number for detailed Discussion, cell no./whatsapp # +91-9822052388 / +91-7498829332, Email: deepaksundrani@thegururalty.com. 

Rest assuring here that we work very ethically, honestly and professionally and for us, our client interest is utmost and foremost then anything else. We have already successfully assisted many NRI’s, EXPATS INVESTORS & LOCALITIES to purchase property in both Mumbai & Pune cities as per their requirements & preferences and most of them are with us to manage their properties through us only so one can judge the level of trust & integrity we have in our work & services.  

Thank you very much for reading my article as here intention is to share information and enhance knowledge for each & everyone for the betterment & provide more transparency in real estate sector.

Looking forward to assist & serve genuine Sellers, Buyers & Investors.

wishing everyone good health and happyness.

Thanks & warm regards, 

Deepak Sundrani 

Cell / whatsapp: +91-9822052388 / 7498829332

Email: deepaksundrani@thegururealty.com