MNRE Increases Subsidy For New Residential Solar Rooftop

MNRE Increases Subsidy For New Residential Solar Rooftop

To reduce the electricity bill, we use solar systems in our homes so that the electricity bill for our home is reduced, and we can also get good battery backup. But installing a solar system involves a considerable cost, so many people think that if their solar system is installed at the minimum cost, it is better.

For this, the government launches various schemes from time to time, under which, if you install a solar system in your home, you can get a good subsidy. Recently, the MNRE has increased the subsidy, so now anyone who wants to install a solar system in their home will get even more subsidy than before.

How much subsidy will be available for Residential Solar Rooftop

The Ministry of New and Renewable Energy (MNRE) has increased the Central Financial Assistance (CFA) in various categories for residential consumers under the rooftop solar scheme. The ministry has stated that the increased rates will apply to projects initiated through new tender mode or applications received through the national portal for rooftop solar.

According to the new notification, MNRE will provide a CFA of ₹18,000 per kilowatt for residential solar rooftop projects between 1-3 kilowatts capacity. Previously, it used to be ₹14,588 per kilowatt. Under this category, with the modification in the CFA grant, any consumer applying for central subsidy will be eligible for an increased CFA per kilowatt.

Similarly, the ministry, while revising, has increased the rates for rooftop solar projects between 3 and 10 kilowatts from ₹7,294 per kilowatt to ₹9,000 per kilowatt. The subsidy has also been modified for specific states. For special cases, the central subsidy for residential rooftop projects between 1-3 kilowatts is ₹20,000 per kilowatt, and for projects over 3 kilowatts but below 10 kilowatts, the total subsidy will be ₹10,000 per kilowatt.

It is also mentioned that for Resident Welfare Associations/Group Housing Societies, for general facilities up to 500 kilowatts with a limit of 10 kilowatts per house, the ministry will provide a grant of ₹9,000 per kilowatt for normal states and ₹10,000 per kilowatt for special states.

Special states include Sikkim, Uttarakhand, Himachal Pradesh, and Union Territories – Jammu and Kashmir (J&K), Ladakh, Lakshadweep, and Andaman and Nicobar Islands, along with the northeastern states.

The ministry stated that the new rates will apply to all future bids and those bids that are closed 15 days after the notice is issued. It is also mentioned that the new benchmark CFA rates will be applicable to all claims submitted on the National Portal for rooftop solar.

National Solar Rooftop Portal, the central financial support has been increased upto Rs. 18000/KWp from previous Rs. 14,588/KWp for projects up to 3 KW and Rs. 9000/Kwp from Rs. 7,294/- for projects above 3 KW and up to 10 KW. New rates are applicable for all claims in the National Portal from the date of issue of Order i.e. 5.1.2024.

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