Solar Panel Subsidy in Punjab, 2021
Updated: Aug 12, 2022
Solar panels are installed on the roofs of any residential, institutional, social, government, commercial, or industrial building in a solar rooftop system. This can be of two types: I a solar rooftop system with battery storage, and (ii) a grid-connected solar rooftop system.
All electricity consumers with a sanctioned load of more than 1.25 Kw in Punjab including Mohali who want to generate their own electricity and contribute to environmental protection can install Solar PV plants on the roof-tops/open areas of individual households, industries, commercial establishments, institutions, residential complexes, Schools, Colleges, Hospitals, sheds, cold stores, government and semi-government buildings, and so on.
Amount of Subsidy available in Punjab?
According to a new MNRE, GOI notification dated 08.03.2019, Punjab State Power Corporation Limited (PSPCL) will provide Central Financial Assistance (CFA)/ Subsidy for Grid Connected Rooftop Solar Plants under Net Metering with capacities ranging from 1 to 10 Kw. CFA will be provided if funds are available from MNRE and the Government of India. MNRE, GOI offers a maximum 40% subsidy on the installation of rooftop solar power plants in Punjab and Mohali, in domestic sector institutions, as detailed below.
Other sectors, such as social/institutional/government/commercial/industrial, will not receive CFA (subsidies).
Residential sector users may install RTS plants with higher capacity as permitted by respective State Electricity Regulations; however, the CFA will be limited to RTS plants with a capacity of up to 10 KWp.
20% CFA for GHS/RWA capacities up to 500 KW (limited to 10 KW per house and total upto 500 KWp)
How can we calculate subsidies based on installed capacity?
Who are eligible vendors for subsidised projects in Punjab?
In Punjab, Only PSPCL-empanelled vendors are eligible to install projects in subsidised rooftop solar projects. Empanelment is not required for non-subsidized projects.
What is the minimum warranty period contemplated by the scheme?
Solar PV modules used in solar power plants/systems must be warranted for their output peak watt capacity, which must be greater than 90% after 10 years and 80% after 25 years.
Mechanical structures, electrical works (including power conditioners/inverters/charge controllers/maximum power point tracker units/distribution boards/digital meters/switch gear/storage batteries, etc.), and overall workmanship of the SPV power plants/systems must be warranted for a minimum of 5 years against any manufacturing/design/installation defects.
Solar project funding
After deducting the subsidy (CFA) amount from the total invoice amount, the eligible consumer interested in installing a solar project in his premises in Punjab will make payment to the PSPCL empanelled vendor like Bigwit Energy. Customers are advised not to pay 100% additional payment to companies for the installation of roof top solar power plants and to fix payment contract terms and sign an agreement in this regard. The payment must always be acknowledged by the solar plant installer like Bigwit Energy.
Solar system responsibility
Consumers will be purely responsible for the purchase and installation of their systems, and PSPCL will not be held liable for any deficits or gaps in the goods and services.
Who is Enabled to Install?
All electricity consumers with a sanctioned load of more than 1.25 Kw who want to generate their own electricity and contribute to environmental protection can install Solar PV plants on the roof-tops/open areas of individual households, industries, commercial establishments, institutions, residential complexes, Schools, Colleges, Hospitals, sheds, cold stores, government and semi-government buildings, and so on.
What exactly is Net Metering?
Net metering is the process of obtaining a "dual-benefit" by installing a solar power plant on the building's roof or open space to generate electricity. The generated power is first used in the building as needed, and any excess power is fed back into the utility grid (PSPCL).
Understand Your Capacity Range
Solar PV Power Plants with capacities ranging from 1KW to 1MW can be installed under the Net Metering Policy. The maximum capacity of a solar power plant installed in a building would be 80 percent of the building's sanctioned electricity load. The required plant's capacity shall be calculated as follows:
Total annual electricity consumption of the house/building =......KWh = (A) Daily electricity consumption = A/365 = (B)
Actual Plant Capacity = B/4 =........KW
Do You Want To Setup Solar plant in Punjab?
Under the Net Metering Policy, all eligible electricity consumers in Punjab, in the distribution licensee's supply area can participate in the solar rooftop net metering arrangement, subject to target capacity.
The system must be installed on the premises of the consumer.
The maximum capacity of a rooftop solar system shall not exceed 80% of the consumer's sanctioned load (kW) or contract demand (in kVA converted to kW by using a power factor of 0.9).
Provided, however, that the installed capacity for a single eligible consumer shall not be less than 1 kWp and shall not exceed 1MWp (AC side).
FAQ in installing Solar in Punjab under Subsidy:
What exactly is a Grid Connected Solar RooftopSystem?
In a grid-connected rooftop or small SPV system, the DC power generated by the SPV panel is converted to AC power by a power conditioning unit/inverter and fed into the grid at various voltage levels, i.e. 11KV/440V/220V, depending on the capacity of the system installed at a residential, institutional/commercial establishment, and the regulatory framework specified by PSPCL. During the day, these systems generate power that is used to power captive loads and feed excess power back into the grid as long as the grid is available. In the event that solar power is insufficient due to cloud cover or other factors, the captive loads are served by drawing balance power from the grid.
What are the main components?
a) Solar PV Modules/Solar Panels – Solar PV modules/panels convert solar energy into electrical energy. They are available in a variety of technologies, including crystalline, thin film, CIGS, CdTe, HIT, and others.
On rooftops, the most common type of solar PV panel is crystalline.
b) Inverter – An inverter converts the direct current (DC) output of solar PV panels into alternating current (AC).
c) Mounting structure – The mounting structure is the support structure that holds the Solar PV panels in place.
d) System Balance – This includes cables, switchboards, junction boxes, metres, constructions, tracking system (if needed), earthing system, circuit breaker, fuses, and etc.
What exactly is a Solar RooftopSystem?
Solar panels are installed on the roofs of any residential, institutional, social, government, commercial, or industrial building in a solar rooftop system. This can be of two types: I a rooftop solar system with battery storage, and (ii) a grid-connected rooftop solar system.
If you want to install solar and be a part of BigWit family in Mohali, Punjab you can give us a call on 7082955224 or send us a mail on sales@bigwitenergy.com. BigWit Energy is one of the best solar companies in Punjab and we offer EMI plans of upto 3 years for our customers too pan India!
Alternatively you can schedule a callback from us at your preferred time over here.
