In the past decade, Indian businesses have emphasised the use of electricity generated from renewable sources like solar energy over electricity obtained from fossil fuels like natural gas or coal for both commercial and household uses. Most commercial establishments and residential buildings are now trying to incorporate the use of solar energy to bring down their dependence on electricity bought from distribution companies - and their energy consumption costs - while reducing their carbon footprint.
You might be sceptical about installing a solar plant on your premises as it involves a significant upfront expenditure. However, when compared to the long-term savings you can realize, this expense becomes an investment cost that is paid back many times over. Besides, you can explore solar plant financing options that allow you to defray paying the expense. You can also check if there are suitable solar power subsidy schemes that can offset some of the investment, if you choose to fund your solar power plant through outright cash, and lessen your concerns about the financial impact on your organisation.
What kind of solar plant subsidies does the Indian government offer?
The Indian government has set an ambitious target of generating 500 Gigawatt (GW) of renewable energy by 2030, of which solar power comprises a significant percentage. While no solar system subsidies are currently available for commercial and industrial consumers, the government is incentivising businesses to adopt solar power in other ways. For instance, installing rooftop solar plants and selling back the electricity to the local power utility firm can help recover the cost of installing the plant as well. Note that government subsidies on rooftop solar panels are available for residential consumers in some states.
What is the Rooftop Solar Scheme?
A rooftop solar (RTS) plant is a system that is primarily installed on a building's roof and also includes installations on open, adjacent land in the vicinity of the premises connected to the local distribution utility or company (DISCOM) electricity grid. Typically, installing a 1 kW RTS plant requires a sunlit area of about 10 square metres , with no shade blocking the sunlight. The solar energy generated through the RTS plant can then be used for on-site consumption or sold back to the distribution company, with the sale value credited to the electricity bill.
A legal framework for this adjustment is provided by the net-metering regulations announced by relevant State Electricity Regulatory Commissions (SERCs). Due to the co-location of power generation and consumption sites, RTS plants assist DISCOMs in lowering transmission and distribution losses. Also, as the solar generation profile matches peak electricity loads during the daytime, these plants help address night-time peak loads.
How to Sell Solar Power Back to Grid in India?
The day your solar PV system is installed, it begins to produce electricity. However, you can sell solar energy back to the grid and receive credit if it produces more energy than you need on your premises. You can sell the electricity generated by your solar panels if you have a net metering connection, which connects your solar PV system to the main electricity grid. Your solar PV system's energy exchange with the national grid is tracked by a net meter. To use a net metering connection, you must have a grid-connected or on-grid solar PV system.
Once enabled, a net metering connection enables you to sell any excess energy generated by your solar panels to the power grid and receive credit for it. Similarly, if the energy generated by your solar panels is insufficient to meet your needs, you can also access additional energy from the grid.
Major Indian states like Maharashtra, Tamil Nadu, Andhra Pradesh, and Rajasthan have implemented net metering policies, which are a practical approach for commercial setups like industries, factories, and shopping centres. As a leading solar energy expert in India, B.U.Bhandari Energy has successfully facilitated a net metering connection for various residential, commercial and industrial establishments across the country.
While the solar incentives for each state are more or less similar, some alterations may be found concerning the state government regulations. In the past, solar plant subsidy schemes have benefited many residential, commercial, and industrial consumers. These subsidy schemes are encouraging the average man to make use of the abundant solar energy and reduce their carbon footprints, while also drastically reducing their electricity bills.
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At B. U. Bhandari Energy, we have spent years providing onsite solar power solutions to countless industries and businesses in India. We utilise the best technologies with the best design to create customised solar rooftop installations. Talk to us today to discover the perfect financial model for your rooftop solar installation.