Solar Panel Subsidy

solar subsidy in 2024
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Last updated at :
Jul 16, 2024
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Over the past decade, solar energy adoption in India has seen a significant increase. This growth is largely due to the supportive framework and policies introduced by both state and central governments. As of 2024, Gujarat's updated subsidy program has played a crucial role in helping India meet its solar energy targets.

Under the new policy and subsidy scheme introduced by the Gujarat government, the cost of installing solar systems has become more affordable for residents. Several factors influence the price of solar systems in Gujarat, including the capacity of the system and whether it is a grid-connected or hybrid system. It's important to note that only grid-tied solar systems are eligible for the national solar subsidy scheme. Additionally, factors like the efficiency ratings of solar panels, the brand, and after-sales services also affect the total cost of switching to solar energy.

Factors Influencing Solar System Prices

1. System Capacity:

The capacity of your solar system, measured in kilowatts (kW), significantly impacts the overall cost. The size of your system totally depends on the amount of units your consumed

2. Type of System:

The type of solar system you choose—whether it's a grid-connected system or a hybrid system—also plays a role in determining the price. Grid-connected systems are typically less expensive and are eligible for the national solar subsidy scheme. Hybrid systems, which combine solar power with other power sources and usually include battery storage, tend to be more costly but offer greater energy independence.

 3. Efficiency Ratings:

The efficiency of the solar panels you select will affect the cost. Higher efficiency panels convert more sunlight into electricity, which can lead to greater savings over time but come at a higher initial price. Lower efficiency panels are cheaper upfront but may not provide the same level of long-term savings.

4. Brand and Quality:

The brand and quality of the solar panels and other system components, such as inverters and mounting structures, also impact the price. Premium brands with higher quality products often come with better warranties and performance guarantees but are more expensive.

 5. After-Sales Services:

The availability and quality of after-sales services, including maintenance and support, can influence the overall cost of your solar system. Comprehensive after-sales support can ensure your system operates efficiently for many years, potentially saving you money on repairs and replacements.

Choosing the Right Solar System

If you're unsure about which solar rooftop system is best for your needs, consulting with a solar expert can be very helpful. They can assess your specific requirements and recommend the most suitable system. You can learn about the ideal solar system for your household and the best mounting design that saves rooftop space.

Solar experts can provide detailed assessments, including:

1. Energy Needs Analysis:

Understanding your household's energy consumption patterns helps determine the appropriate system size. An expert can analyze your past electricity bills and estimate future energy needs based on household size, appliance usage, and lifestyle.

2. Site Assessment:

A thorough site assessment includes evaluating the available rooftop space, the angle and orientation of the roof, shading from nearby structures or trees, and the structural integrity of the roof. This information helps in designing an efficient and effective solar system.

3. System Design:

Based on the energy needs and site assessment, the expert can design a system that maximizes energy production while fitting within your budget and space constraints. This includes selecting the right type and number of solar panels, inverters, and other components.

4. Financial Analysis:

A detailed financial analysis includes calculating the total cost of the system, potential savings on electricity bills, payback period, return on investment, and the impact of available subsidies and incentives.

Benefits of Solar Panel Subsidies 2024

Registering for government subsidies can significantly reduce the cost of installing solar systems. As of February 2024, the new subsidy rates are as follows:

The subsidy for solar systems in Gujarat ranges from 25000-60000 INR  for 1 kW systems. For a 3 kW system, the subsidy is ₹78,000, which includes ₹60,000 for the first 2 kW and ₹18,000 for the next 1 kW. For systems above 5 kW and up to 10 kW, the subsidy is capped at ₹78,000.

To qualify for these subsidies, individuals need to register on the National Portal for Rooftop Solar starting from February 13, 2024.The process of registering for subsidies involves several steps in which your solar installer can help you with the whole process


The increase in solar energy adoption in India, particularly in Gujarat, can be attributed to government policies and subsidies that make solar installations more affordable. By understanding the different factors that influence the cost of solar systems and taking advantage of available subsidies, more households can transition to solar energy. This not only results in cost savings but also contributes to a more sustainable and environmentally friendly energy future. As the technology continues to advance and the costs of solar components decrease, it is expected that even more households and businesses will make the switch to solar energy, further driving the growth of renewable energy in India.

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