Solar Panels: Installing Rooftop Solar Can Be Expensive! How Much Will the Government's New Rules Impact Your Wallet?
To boost solar energy in India, the government has implemented new regulations effective June 1st. The objective of these rules is to strengthen domestic solar manufacturing and reduce dependence on imports—particularly from China—for solar cells. However, this shift could also impact the prices of rooftop solar systems.
The government has tightened regulations regarding solar panels sold under the ambit of government incentive schemes. Now, to avail of subsidies and net-metering benefits under the PM Surya Ghar Yojana, only solar panels manufactured by companies listed in the ALMM List-2 will be deemed eligible.
Furthermore, the solar cells utilized in these panels must also be sourced from Indian manufacturers approved by the government. These regulations will apply not only to residential installations but also to commercial and industrial projects.
**What is the Government's Plan?**
India possesses the capacity to manufacture approximately 200 gigawatts of solar modules annually; however, domestic solar cell production is currently limited to around 30 gigawatts. This implies that many solar panels manufactured within the country still rely on imported solar cells. The government aims to bridge this gap and boost domestic production.
**What Will Be the Impact on Consumers?**
Following the implementation of the new regulations, the cost of rooftop solar systems is likely to increase. Industry experts estimate that the installation cost could rise by approximately ₹3,000 per kilowatt.
Based on this projection, installing a 3kW system could entail an additional expense of around ₹9,000, while a 5kW system could cost an extra ₹15,000. There is also a possibility of further price hikes as the demand for government-approved panels increases. Additionally, the documentation verification process for availing subsidies may become more stringent than before.
**Demand for Indian Solar Panels Set to Rise**
India requires approximately 50 gigawatts of new solar panels annually, whereas current domestic supply stands at only 25 to 30 gigawatts. Consequently, the demand for Indian-manufactured solar products is expected to surge rapidly following the introduction of these new regulations. This will boost investment in the sector, although a shortage of supply and a surge in prices may be observed during the initial phase.
**Relief Expected from Subsidies**
Despite rising prices, the government's subsidy scheme will continue to provide relief to consumers. Under the PM-Surya Ghar Yojana, subsidies of ₹30,000 for a 1kW system, ₹60,000 for a 2kW system, and up to ₹78,000 for systems with a capacity of 3kW or more are available.
Furthermore, several state governments offer additional incentives. The scheme also provides the benefit of up to 300 units of free electricity per month.
Disclaimer: This content has been sourced and edited from Amar Ujala. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
