Gujarat is one of the powerhouse states in India. From hydropower plants to thermal power generation, there is no end to the type of energy solutions promoted by the state government. One of the most significant initiatives for an energy-based solution in the state is the solar panel subsidy scheme launched by the Gujarat government in 2021.

Gujarat is the seventh-largest contributor to India’s growing solar panel installations, with a 7% share and 1.4 GW of installed capacity. The Surya Urja Rooftop Yojana by Gujarat’s state authorities is an initiative in line with the National Solar Mission program conducted by the Indian government.

The vision behind the program is to power the entire country through one lakh MW of energy generation by 2022, which will have 40000 MW of solar energy generated through rooftops. Several states have been allocated due to power generation, out of which Gujarat needs to generate 8,024 MW of solar energy during the timeframe of 2021-2022.

The rooftop segment will contribute about 3200 MW of power to the total targe allotted to the Gujarat government. So, to promote solar power generation across the state, the Gujarat government has launches Surya Urja Rooftop Yojana. Objectives of this scheme are,

• Increase power generation to meet the energy demand through alternate sources.
• Promote free and clean energy generation.
• Save energy bills of consumers through renewable sources.
• Reduce the stress of energy costs through subsidy.
• Build an ecosystem of renewable energy generation with ample employment and research opportunities.

Let’s discuss this scheme in detail.

Solar rooftop installations have been promoted by the state government since 2016 through subsidy. However, the recent update of the program has provided a much-needed boost to people interested in leveraging solar a system for the home.

This scheme offers a subsidy of 40% on the installation of solar systems for homes with a capacity of up to 3KW. If you opt for a solar solution for your home with a capacity of between 3KW and 10KW, then the subsidy offered will be 20%. For example, if a consumer opts for 11KW of solar solution for their home, they can receive 40% on the first 3KW and a further 20% on 7KW. However, there are specific eligibility criteria for subsidy set by the state government like,

• The minimum capacity of rooftop installation is 1KW with an upper cap of 10KW for subsidy.
• Users can install rooftop solutions of any capacity, and there is no capping.
• For community-based installations like Group Housing Society(GHS) and Residential Welfare Association(RWA), the installation limit is 500KW with a 20% subsidy on the total cost.
• Consumers can only choose a service provider from the list of GUVNL(Gujarat Urja Vikas Nigam Limited).
• The service provider is liable to maintain the solar system for the home after five years of installation.
• Applicant must have an Adhaar number and last electricity bill for application purposes.
• Everything from the security deposit to the application on the digital portal of Surya Urja Rooftop Yojana needs to be done by the service provider.
• The security deposit should be equal to the estimated price, including connectivity charges, solar generation meter charges, meter testing, and box charges.
• If an application wants to change an existing electricity distribution structure for their home, then charges are to be borne by them.

It is important to note that Gujarat Urja Vikas Nigam Limited (GUVNL) will be the nodal authority for this scheme, and subsidy allocation is passed on to different DISCOMs or electricity distribution firms in the state.

This scheme follows the one-person one benefit rule where if an applicant has already availed of any other subsidy through government schemes, the subsidy will be recovered.  Another essential factor to consider is that this scheme is only for residential purposes and not for industrial, commercial, government officials, or even semi-government organizations.

Execution of this scheme has already paved the way for 50,915 households powered by solar solutions for their home in march 2020. Though this scheme is not for non-residential projects, the government of Gujarat has made provisions to promote solar rooftop solutions for commercial and industrial use.

Commercial solar panel installations are great alternatives, especially for small and medium businesses that deal with the cash crunch. Cost savings on the energy bill is significant, and it also helps build a green image for the brand.

At the same time Government of Gujarat has also understood the importance of industrial solar panels and commercial installations to promote clean energy. Therefore, as a part of their initiative to promote solar energy, the Government of Gujarat has made a landmark decision of removing the capacity of installations across all commercial, industrial, and residential sectors.

According to NSEFI, the current policy of solar panel systems for commercial installations allows Discoms to purchase electricity at a minimal price of 20 paise per unit for a project with a capacity of 4KW.  Apart from these schemes, the government is planning to buy surplus solar energy from residential and commercial generated through their installed capacity at 2.25 INR per unit.

Renewable energy sources are an excellent option for conventional fuels and light on your pocket. In addition, they can save you from higher energy bills and even support the environment through cleaner energy. Apart from these benefits, solar panel systems for commercial and residential usage can also be leveraged for remote places where conventional methods of electricity distribution are not successful.

So, if you are still wondering how to leverage this scheme from the state government, then it’s simple; All you need is a service provider like Electro Line. It offers solar solutions for home, commercial, and industrial uses by taking care of all the application activities for you to leverage schemes like Surya Urja Rooftop Yojana.