How Government Policies and Incentives Can Make Solar Power Affordable in Bangalore

As a homeowner, we’re constantly in search of upgrading our living style to be more sustainable and cleaner. A city like Bangalore always comes up with new renewable tech that helps their homes become “smart homes.” Investing in a solar energy generation system is by far the smartest decision every Bengaluru homeowner should take. 

Solar is an effective power solution for homeowners in Bangalore, and the solar plant is an excellent way to conserve the environment as it does not produce any form of pollution like the greenhouse gases such as CO2 and at the same time, gives monumental contributions in the amount of savings in a homeowner’s electricity bills. The government has enacted new policies and incentives that will be an integral factor in making solar power more affordable and accessible. This comprehensive guide will help you understand how these initiatives can benefit you. 

Benefits of Solar Energy 

Solar power is a direct absorption of light rays from the sun. The light rays then convert into electricity through the PV cells, providing us with one of the cleanest sources of energy. For homeowners, installing solar panels can lead to: 

• 95% Slash on Electricity Bills: Generating your own electricity decreases your dependence on the grid, lowering monthly expenses made on your electricity bill. 

• Positive Impact: Solar energy is clean and generated from sunlight which we receive in abundance on a daily basis, this helps in reducing carbon footprints and contributing to a better planet. 

• Energy Independence: Producing your own electricity offers independence against multiple factors like increasing electricity tariffs, grid outages and constant fear of government policies changing.  

Government Initiatives to Make Solar Affordable 

The central government under NaMo recently in February 2024 introduced subsidies on solar rooftop for 1 crore houses across India.  

1. Central Government Subsidies 

The Ministry of New and Renewable Energy or otherwise referred to as the MNRE, under the PM – Surya Ghar: Muft Bijli Yojana, provides subsidies up to Rs. 78,000 on solar rooftop installations. The government’s subsidiary financial help only covers the 20-40% expenses incurred during installation. The scale of the intermediate payment offered to the house owner will revolve around the system size that must be installed. 

Subsidy Details: 

• Residential: Homeowners can receive a subsidy of up to 40% for systems up to 3 kW and up to 20% for systems between 3 kW and 10 kW.  

2. State Government Incentives 

Karnataka had been proactive in promoting solar energy through various initiatives, these have since then been waved off because of one common central subsidy which is the PM Surya Ghar Muft Bijli Yojana.  

• Karnataka Solar Policy 2023: It aimed to encourage fellow citizens of the state to adopt solar power across all sectors; residential, commercial and for housing societies. This then allowed consumers to harness and generate electricity through solar power independently on their rooftops.  

• Soura Gruha Yojane (SGY): This is a policy under KREDL which assists in the promotion of grid-connected rooftop solar systems that include net metering through the provision of fiscal incentives in form of the interest subsidy contribution. 

This has enabled not only the rooftops but also all the wasted lands with the solar panels. That in turn, UDAY would give the right incentives for consumers to adopt energy-efficient appliances and help power utilities to run efficiently and profitably. However, if the homeowner had a battery energy storage system installed, excess electricity could be stored rather than exported, and they could be compensated by BESCOM for the electricity sold.  

3. The Net Metering Policy 

Net metering allows homeowners to direct excess generated energy from their solar energy generation system back into the grid, this is done through a technology called a battery energy storage system or popularly referred to as the BESS. The battery acts like a storage unit where excess energy is stored. This excess energy can either be used during times when the grid is down or there are peak hour charges applied by the DISCOM.  

Financial Implications of the Government Subsidies 

One of the most debilitating factors to solar power installations would be their up-front costs; however, the government has to come to the rescue by implementing rebates and other programs. Here are the subsidy amounts allocated for the system sizes: 

• >300 (Units) needs a system size above 3 kW which puts the subsidy amount receivable by the homeowner at ₹78,000 

• 150-300 (Units) needs a system size between 2-3 kW which puts the subsidy amount receivable by the homeowner between ₹60,000 to ₹78,000. 

• 0-150 (Units) needs a system size between 1-2 kW which puts the subsidy amount receivable by the homeowner between ₹30,000 to ₹60,000. 

Example Calculation: 

• System Size: 3 kW 

• Total Project Cost: ₹₹2,64,415 

• Subsidy (40%): ₹78,000 

• Net Effective Price to Homeowner: ₹1,86,415 

This subsidy generates homeowners an opportunity to secure solar power at a lower price. 

Steps to Apply for Your Government Subsidies 

1. The Portal: Through the PM Surya Ghar Muft Bijli Yojana, the government has a designated portal to register for your solar rooftop. 

2. Consultation: Once your registration is done, you can contact one of the certified solar rooftop installers through the portal. 

3. Application: After selecting your solar rooftop installer, you need to submit an application through the PM Surya Ghar portal 

4. Installation: Upon approval of the application, the solar installer will be assigned the details of your requirement. This then proceeds with the installation by the selected vendor to ensure all formalities included with the subsidy are met. 

5. Inspection and Commissioning: After installation, the Net metering permissions have to be sanctioned by your local DISCOM which connects your solar energy generation system to the grid.  

6. Subsidy Disbursement: Post-commissioning, the subsidy amount is disbursed, reducing the overall cost incurred by the homeowner. 

   
   

Choosing a Local Solar Installer 

Selecting a solar installer is crucial to the entire experience of getting your solar energy generation system. There are criteria one should inspect before finalizing the solar installer partner.  

• Experience: Ensure the installer has a proven track record in successful residential solar installations. 

• Local Presence: Make sure you choose an installer with a base in your city, this usually proves to be more beneficial for the homeowner since the installer would be better accessible to them 

• Certifications: Check for installers through the government portal in case of uncertainty. This showcases that the installer is certified by the MNRE.  Atria is the only installer with guaranteed authenticity with DCR Compliance Certification, issued by MNRE, ensuring the highest standards of quality and reliability. 

• Comprehensive Services: Choose installers who offer end-to-end services, including site assessment, size consultation, government permissions, government paperwork, documents of importance, loan applications, subsidy applications, installation and maintenance post installation. 

Why trust Atria 

The Atria group, established in 1960, has spent over 50 years shaping the future through sustainable energy and innovative community initiatives. As India's first private hydro power producer, Atria also taps into solar and wind energy. The companies also take on the role of the founding fathers of ACT Fibernet providing broadband services in Southern Asia. Moreover, Atria is known for sustainability, innovation, and service of the highest quality. The founders' brilliant idea ignited Atria's mission to help more people which really brings a strong sense of responsibility to them with which they move further. A brand that has always been dedicated to the development of the city and its people; it shares legacies with monuments that are personal to a fellow bengalureans like the Chinnaswamy stadium, the veterinary hospital, Atria Radisson blu, Farmlore, Ashoka pillars and more! 

Beyond renewable energy, Atria pledges to a sustainable ecosystem that fulfills human needs. As a tech-forward, customer-focused brand, Atria champions the shift from centralized to decentralized systems, promoting empowerment and connectivity. They also support crucial social causes like hunger eradication, education, and healthcare, envisioning a better world for tomorrow. 

Conclusion 

Government policies and subsidies have made solar powered energy generation affordable and easily accessible for homeowners in Bangalore. By taking advantage of these government schemes such as the PM Surya Ghar Muft Bijli Yojana, you can reduce your electricity bills by almost 95%, contribute to environmental sustainability by reducing CO2 emissions, and gain energy independence as you would not have to depend on the grid. Partnering with a local installer like Atria Renewable ensures a completely seamless process to start off your solar journey, allowing you to enjoy the benefits of government subsidies.  

Atria Renewable has been successful in completing 100+ installations with a 100% success rate in maintaining our solar systems across the city in just 7 months of operation. If you are someone who resides in Bengaluru and are looking for a solar partner who is trusted and has a proven track of being customer forward, you have come to the right place.  

Our solar experts are skilled and certified in handling all your queries related to how you can start generating your own electricity with the best returns on your investment. Call us today on 080 6268 0000 and let’s get you started on your solar journey today!