All About Solar System Price and Subsidy in Uttar Pradesh (2024)

solar subsidy in Uttar Pradesh

Solar is a clean energy source that uses photovoltaic technology to harvest sunshine and generate zero-cost electricity in great quantities, enough to power our homes and offices. The financial and economical advantages of solar power systems heavily outweigh the cost of using traditional energy sources. Many consumers are able to earn back their initial solar investment in as little as 6-8 years.

Setting up solar panels with subsidy in UP is now more affordable and advantageous than you have ever imagined. The Ministry of New and Renewable Energy (MNRE) announced the extension of the Rooftop Solar Programme till March 31, 2026. As a Direct Benefit Transfer (DBT) scheme, beneficiaries receive the subsidy aid directly into their bank account.

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Solar Panel System Subsidy in Uttar Pradesh

Households have the opportunity to reduce solar panel system prices in Uttar Pradesh and free the cost of electricity for their home. Under the Rooftop Solar Programme Phase II scheme, you can receive Central Financial Assistance (CFA)/Solar Subsidy Support of a fixed amount for every kW of your system size. Only residential consumers and housing societies are eligible to benefit under this scheme. 

Rooftop Solar System Capacity Applicable Subsidy (₹)
Up to 3 kW 18,000/kW
Above 3 kW and up to 10 kW 9,000/kW*
Above 10 kW 1,17,000**
Resident Welfare Associations (RWA) / Group Housing Societies (GHS) Rs. 9,000/- per kW

For common facilities up to 500 kWp @ 10 kWp per house, with the upper limit being inclusive of individual rooftop plants already installed by individual residents in that GHS/RWA at the time of installation of RTS for common activity.

Note: *₹18,000/kW for the first 3 kW and ₹9,000/kW for the rest of the capacity up to 10 kW.

**The subsidy amount is fixed for rooftop solar systems above 10 kW capacity.

Note: The approval on a CFA/subsidy application is granted only after the successful inspection and commissioning of your installed RTS plant, which involves the integration of the net metering mechanism. The CFA/subsidy amount is calculated according to the total solar system capacity approved by your local DISCOM.

Solar System Price in Uttar Pradesh

What is the actual price of a 5kW solar panel plant in Uttar Pradesh? The surest way to figure out the upfront solar investment for your home is by connecting with an experienced solar company for a customized quote. Depending on your property’s technical and financial parameters and your budget, the solar company will advise you on the most suitable RTS capacity to meet your power needs and also guide you on the solar panel prices in UP.

Here’s an estimation of 1kW to 10kW solar panel price in Uttar Pradesh for illustration purposes. It’s important to note that several factors like type, size and materials of solar panels, type of solar system, and the style of module mounting structure you choose largely influence the final solar investment.

Solar System Size Price Range (Estimated)
1kW Solar System Rs. 75,000 – 85,000
2kW Solar System Rs. 1,50,000 – 1,70,000
3kW Solar System Rs. 1,89,000 – 2,15,000
4kW Solar System Rs. 2,52,000 – 2,85,600
5kW Solar System Rs. 3,15,000 – 3,57,000
10kW Solar System Rs. 5,31,000 – 6,07,000

Solar System Price in Uttar Pradesh with Subsidy

Here is a tabular representation of 1kW-10kW solar panel prices in Uttar Pradesh with subsidy. Under the simplified subsidy scheme, a fixed subsidy amount is awarded for each kW of the total solar system capacity. The subsidy slabs defined below and the respective subsidy aid for different system capacities are applicable for all residential installations across all states in India.

The recently introduced subsidy rates under the national simplified subsidy scheme offer a fixed subsidy amount for each kW of solar system capacity. These subsidy slabs for different system capacities remain applicable for all residential installations of solar power plants in UP and all over India.

Solar System Size Estimated Price Range Subsidy Applicable Prices After Subsidy
1kW Solar System Rs. 75,000 – Rs. 85,000 Rs. 18,000 Rs. 57,000 – Rs. 67,000
2kW Solar System Rs. 1,50,000 – Rs. 1,70,000 Rs. 18,000 x 2 = Rs. 36,000 Rs. 1,14,000 – Rs. 1,34,000
3kW Solar System Rs. 1,89,000 – Rs. 2,15,000 Rs. 18,000 x 3 = Rs. 54,000 Rs. 1,35,000 – Rs. 1,61,000
4kW Solar System Rs. 2,52,000 – Rs. 2,85,600 Rs. 18,000 x 3 + Rs. 9,000 x 1 = 63,000 Rs. 1,89,000 – Rs. 2,22,600
5kW Solar System Rs. 3,15,000 – Rs. 3,57,000 Rs. 18,000 x 3 + Rs. 9,000 x 2 = Rs. 72,000 Rs. 2,43,000 – Rs. 2,85,000
10kW Solar System Rs. 5,31,000 – Rs. 6,07,000 Rs. 1,17,000 Rs. 4,14,000 – Rs. 4,90,000

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Steps to Apply for a Subsidy in Uttar Pradesh

The launch of the National Portal for Rooftop Solar has simplified the processing and disbursement of solar panel subsidy in Uttar Pradesh and all of India. The online procedure is not only more transparent and efficient but also empowers consumers to easily avail the subisdy benefits. Simply log into your account to submit your subsdiy application and track its progress, submit all the relevant documents, and receive the approved amount directly into your back. 

Not sure if you are eligible for subsidy on your 5kW solar panel system price in Uttar Pradesh? Visit the online portal to learn all about the eligibility criteria, registered solar vendors in your region, and the list of Approved Models & Manufacturers of BIS-compliant Solar Photovoltaic Modules to buy made-in-India solar components.

Benefits of Solar Panel Subsidy in UP

Whether you choose an easy solar transition with a low-priced 2kW solar panel in Uttar Pradesh or a larger capacity system, you can enjoy the following advantages of generating and using zero-cost, clean solar electricity. 

  • Cost Savings on Electricity Bills

Sunshine is inexhaustible and available in abundance in most states without impediments. Putting a solar power plant in your UP home is a one-time investment that promises decades of low-cost power supply as high-efficiency solar panels promise daily output of energy for a lifespan of 25 years, after which they give less and less power.

Solar energy can offset a major part of your monthly grid usage or even eliminate energy bills. During peak sun hours, your system’s solar energy output exceeds your home’s daily electricity demand. The surplus generated is sold to the local grid for solar credits.

Process for Installing Solar System in Uttar Pradesh

If you plan to set up your home solar energy plant through the National Portal and avail solar subsidy in UP, here is the procedure that you need to follow:

Step 1 – Registration

The National Portal for Rooftop Solar is the official platform launched for the online processing and disbursement of subsidy. As a homeowner switching to solar, you need to register on this online portal. 

Step 2 – Apply for Rooftop Solar

Once you are registered, you can log into your account anytime and submit the application for solar system subsidy in UP.

Step 3 – Technical Feasibility Approval/TFR

Your local DISCOM company receives your online subsidy application and processes it for technical feasibility. Approval is given if all the details furnished in the application are found correct. Else, the application is sent back under rejection/correction.

Selection of Vendor and Plant Installation

Upon receiving an approved TFR status, you can finalize a registered vendor (a solar company empanelled with DISCOM). It is necessary to select a registered vendor to qualify for subsidy on solar panel systems in UP. Make sure you sign the ALMM declaration form with your vendor before proceeding to the plant installation. It’s a model agreement prescribed by MNRE and works to protect consumers’ interests.

Step 4 – Submit Installation Details

After your solar power plant in UP has been installed as per the technical specifications and standards mandated by the MNRE, submit the documents related to your RTS installation in the National Portal. Also, upload a photo of the applicant with the rooftop solar system. Thereupon, inspection and net-metering of the solar system are performed.

Step 5 – Inspection by DISCOM

DISCOM officials conduct an on-site inspection of your RTS plant and ensure that the installation conforms to the MNRE’s technical specifications and standards. After the successful inspection, the DISCOM officials install the net metering system.

Step 6 – Project Commissioning Status

The DISCOM official approves your UP solar subsidy application online upon the successful inspection of your RTS plant and the integration of the net meter. Thereupon, a commissioning certificate is generated which can be viewed in the applicant’s account.

Step 7 – Subsidy/CFA Request

Once you have the commissioning certificate, you need to provide bank details and then raise the subsidy/CFA claim request online.

If details are found correct, the final subsidy/CFA amount is released directly into the provided bank account within 30 days of approval.

What Is Net Metering?

Net metering is a mechanism of recording import and export of units. Tying your solar power plant in UP to the government grid allows you to earn solar credits by sending unused solar energy units to the grid. On some days when your region doesn’t receive enough sunshine due to inclement weather, the solar panels produce less power than the standard output. In this case, you can also fall back to the grid and meet your additional power requirements.

The net meter is paired with your solar panels to record this flow of energy between the grid and your home. It records both the import of grid electricity and the export of solar electricity in your monthly utility bill, and you’ll be required to settle the difference.

How to Apply for a Net Meter in Uttar Pradesh?

Broadly, the process for installing a net meter is the same across all states in India. When applying for solar panel subsidy in Uttar Pradesh, the process will involve the commissioning of your system which requires setting up a net metering mechanism to regulate your home solar system.

Conclusion

More and more households are recognizing the financial, economical, and environmental advantages of switching to solar. And given the impetus of the solar subsidy scheme, installing a solar system with subsidy in UP can now fit any home with any budget. 

However, it’s important to note that government subsidies are only available until the country’s target of 40GW of rooftop solar (RTS) installations is achieved. The world is moving to renewable alternatives to facilitate sustainable growth and development. Therefore, now is the right time to tap into the power of solar PV technology for your home.

Frequently Asked Questions

What is the price of a 3kW solar panel system in Uttar Pradesh with subsidy?

A 3kW solar system is a suitable size to power small homes and commercial spaces. Most property owners on a budget prefer this system size to reduce their electricity costs without compromising on their energy needs. If you opt for a grid-connected solar framework and select made-in-India solar components, you will be able to receive a maximum subsidy of Rs. 43,764. 

Do I have to hire only a registered/empanelled solar vendor to set up my RTS plant? 

To be eligible under the subsidy scheme, it’s mandatory to only hire an empanelled vendor who is vetted and authorized to work on subsidized residential solar projects. They uphold the required minimum specifications and standards in RTS installations. It’s advised to go for a solar company registered with your local Distribution Utility (DISCOM) company.

What kind of necessary assistance is your vendor obligated to provide?

The vendor must conduct an initial site survey of the location where you intend to set up your solar power plant in UP. During the survey, your site is evaluated on the technical and financial parameters, which determine the right type, size, and design of your home solar plant.

It’s the vendor’s duty to carry out the entire installation process, including permit acquisitions. Also, the vendor is required to help the DISCOM authority in setting up the net meter and inspecting the installed solar plant. Post installation, your vendor provides ongoing maintenance on your plant for the next five years.

How much space is needed to put a 1kW rooftop solar system?

Although it largely depends on the number of solar panels used and the module mounting structure opted for, a typical 1kW RTS plant composed of standard-quality panels will occupy 10 sq. metres. The area must be clear of any shadow cast by nearby trees and structures to ensure that solar panels perform at their peak efficiency level.

What type of solar framework is eligible for solar system subsidy in UP?

You can subsidize solar panel prices in Uttar Pradesh only if you tie your system to the local grid. The cost of batteries is not included in CFA calculations, though homeowners are free to add solar batteries to maximize the advantages of solar energy. However, it is important to note that the addition of batteries to the solar system will revoke the subsidy. In case you live in a remote area where grid accessibility isn’t available, you might want to consider an off-grid solar system which is not eligible for subsidy.

Amplus Solar

Amplus Solar

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