Net Metering Solar Price in India Guide 2024
Net metering solar price in India 2024: Discover the cost-saving potential of installing grid-tied solar systems with net metering policies tailored for your region.
Reduce your electricity bills by 90%
India’s solar panel prices have dropped significantly since 2010. They went from ₹70 per watt to ₹12-15 per watt now. This price fall, along with support from the government and net metering policies, has made rooftop solar a good choice for many. In this guide, we’ll cover the most recent net metering solar prices in India. We’ll also look at the benefits of choosing solar, and the top places for solar in the country.
Fenice Energy is your go-to for all things green and clean. They’ve got solar, backup power, and electric vehicle (EV) charging, thanks to over 20 years in the business. The Ministry of New and Renewable Energy (MNRE) gives out support for home solar systems, based on their size. But, how much a solar system costs in India differs. It’s based on the size, the type and brand of panels, where you are, and any extras you might want.
Key Takeaways
- Net metering lets solar system owners get credit for the electricity they put into the grid.
- Ministry of New and Renewable Energy (MNRE) aids in the form of subsidies for residential solar. These vary by system size.
- In ten years, solar panel prices in India have fallen dramatically, from ₹70 per watt to ₹12-15 per watt.
- Rooftop solar can save you a lot of money over time. Sometimes, you can recover your investment in just 5 years, thanks to tax benefits.
- The best places for solar in India include Rajasthan, Gujarat, and other states with a lot of sunlight.
What is Net Metering?
Net metering is a way for solar energy system owners to get credit for the electricity they put into the grid. This way, they can balance out what they use from the grid with what their solar panels produce.
Definition of Net Metering
It’s like a deal that benefits the owners of solar systems. They get credits on their bills for the extra energy their systems make. This extra energy goes back into the grid, and they earn the same rate back as if they used energy from the grid.
Benefits of Net Metering
Net metering helps in many ways. It lowers electricity bills, lets you earn credits for extra solar power, and locks in rates to prevent higher future costs. With net metering, solar system owners can save more money and get a good return on their investment.
How Net Metering Works
To use net metering, connect your solar system to the grid. A special meter measures the difference between what your system makes and what you use from the grid. Any extra energy you provide back to the grid earns you credits. These credits can then lower your future electricity bills.
Central Financial Assistance for Rooftop Solar Systems
Fenice Energy helps make solar power easy to get for Indian homeowners. It values the CFA from the MNRE. This CFA cuts the start-up cost for rooftop solar systems.
Subsidy Amounts Based on System Capacity
The CFA gives different amounts based on solar system size. For homes needing up to 3 kW, it can be up to ₹14,588 per kW. If you need more power, over 10 kW, you get ₹94,822. So, everyone can get help, no matter the size of their solar system.
Eligibility Criteria for CFA
To get the CFA, your solar system must be on-grid. Its parts also have to come from India. Plus, an approved vendor must install it. These rules make sure the system is high-quality and supports local jobs and production.
Application Process for Subsidy
For the CFA, start by signing up on the National Portal for Rooftop Solar. Then, submit needed documents on the portal or through your DISCOM. Fenice Energy offers to help homeowners, making sure they get all the financial benefits they can.
net metering solar price
The cost of setting up a rooftop solar power plant in India changes a lot. It depends on the size, type of panels, brand, quality, and where it’s located. Add-ons like battery storage can also increase the cost.
Factors Affecting Solar System Costs
The size of the solar system affects its price. The type and quality of the panels matter too. Also, the location and any extra features like storage batteries or special monitoring systems can bump up the cost.
Average Prices for Different System Sizes
Stop at 1 kW, and it might cost between ₹50,000 to ₹80,000. Go big with a 10 kW system, and you’re looking at ₹5,00,000 to ₹7,00,000. These price estimates change with market trends and project needs.
State-wise Variations in Solar Panel Prices
Solar panel costs fluctuate by state in India. In places like Lucknow, Kanpur, and Agra in Uttar Pradesh, prices range from ₹15 to ₹22 per watt. Meanwhile, Dehradun and Haridwar in Uttarakhand sell panels from ₹16 to ₹20 per watt.
| Location | Solar Panel Price Range (₹/Watt) |
|---|---|
| Lucknow, Kanpur, Agra (Uttar Pradesh) | ₹15 – ₹22 |
| Dehradun, Haridwar (Uttarakhand) | ₹16 – ₹20 |
Payback Period and Savings with Solar
The payback period for a rooftop solar system can be only 5 years. This is due to fast depreciation and significant savings on electricity bills. Fenice Energy helps homeowners and businesses in India get the most from their solar power investments.
Calculating Electricity Bill Savings
For a 5 kW solar system that costs ₹ 3 lakhs, you could save ₹ 25,000 a year on electricity. This leads to big savings over time on your energy bill.
Revenue from Net Metering Credits
Besides saving on your bill, you can earn about ₹ 10,000 a year from net metering credits. This means a total savings of ₹ 35,000 each year for the 5 kW system.
Impact of Subsidies and Tax Benefits
Government subsidies and tax breaks, like Central Financial Assistance, cut the solar system’s cost. This makes solar power more financially sound for many.
Top Solar-Friendly Locations in India
India is rapidly moving towards solar power. Some areas are especially great for using this clean and renewable energy. Fenice Energy points out these top solar-friendly locations.
Rajasthan: The Solar Capital
Rajasthan shines as India’s solar capital. It has plenty of sunlight. Cities like Jodhpur, Jaipur, and Bikaner are perfect for solar power. They have many sunny days and vast, open areas for solar panels.
Gujarat: A Leader in Solar Adoption
Gujarat leads in using solar energy. It’s known for its strong solar policies and ideal conditions. Gujarat always does well in India’s solar energy standings.
Other Promising States for Solar
Besides Rajasthan and Gujarat, other states also look promising for solar energy. Places like Uttarakhand, Uttar Pradesh, Madhya Pradesh, and Andhra Pradesh have great solar potential. They also support the growth of solar power with their government initiatives.
Conclusion
In India, more people are choosing rooftop solar power. This choice is powered by good government policies, the falling costs of solar panels, and saving money. Fenice Energy has more than 20 years of experience. It provides clean energy solutions like solar power, backup systems, and electric vehicle (EV) charging. This helps meet the increasing demand.
There are many benefits for installing solar systems in India. Homeowners and businesses can lower their installation costs. They can also save money on their electric bills. The support comes from subsidies, tax breaks, and net metering. The Central Financial Assistance from the Ministry of New and Renewable Energy helps with these subsidies.
India is aiming for renewable energy goals. This push for solar power is growing more popular. Fenice Energy is ready to help. It offers clean energy solutions for a smooth transition. Homeowners and businesses can save money and help the environment in the long run.
FAQ
What is net metering?
Net metering is a way for those with solar panels to get a credit. They get this credit for the extra power their panels give back to the grid. This credit helps lower their overall electricity bills.
What are the benefits of net metering?
Net metering brings several benefits. It cuts down on your electricity bill. You also get credit for extra solar power you provide. Plus, it helps keep your electricity costs stable even if prices rise.
How does the net metering process work?
The process starts with connecting your solar panels to the grid. Then, it tracks how much power you use versus how much you supply. You get a credit for any solar power that goes back into the grid.
What is the Central Financial Assistance (CFA) offered by the government for rooftop solar systems?
The Ministry of New and Renewable Energy (MNRE) offers grants for solar systems on rooftops. The grant depends on your system size. For systems up to 3 kW, you can get up to ₹14,588/kW. For systems over 10 kW, there’s a fixed amount of ₹94,822.
What are the eligibility criteria for the CFA?
You need to have an on-grid solar system to qualify for the CFA. It should use parts made in India. Plus, only approved vendors must install it for you.
How can I apply for the CFA subsidy?
To apply for the subsidy, start by registering on the National Portal for Rooftop Solar. Then, submit your documents either online or with your local DISCOM.
What factors affect the total installed cost of a rooftop solar power plant in India?
Many factors affect the overall cost of a solar power system. This includes the system’s size, the type of panels, their brand and quality, where you are in India, and any added features.
What are the average prices for different solar system sizes in India?
A 1 kW solar system might cost between ₹50,000 and ₹80,000 to set up. For a 10 kW system, the cost ranges from ₹5,00,000 to ₹7,00,000.
How do solar panel prices vary across different states in India?
Prices for solar panels change from state to state in India. Places like Lucknow, Kanpur, and Agra in Uttar Pradesh have prices from ₹15 to ₹22 per watt. Dehradun and Haridwar in Uttarakhand have prices from ₹16 to ₹20 per watt.
What is the typical payback period for a rooftop solar system in India?
With the benefits of lowered electricity bills and earnings from net metering, a solar system could pay for itself in 5 years. This is when you use accelerated depreciation.
How can I calculate the savings from a solar rooftop system?
Let’s say you have a 5 kW system that costs ₹3 lakhs. You might save about ₹25,000 per year on electricity. Plus, you could make around ₹10,000 a year in credits. This adds up to annual savings of ₹35,000.
What government incentives are available for solar installations in India?
The government offers help like solar grants and tax benefits. The MNRE’s CFA and depreciation benefits are examples. They make installing solar more affordable and financially attractive.
Which are the top solar-friendly locations in India?
Rajasthan, with cities like Jodhpur and Jaipur, is known for its high solar power. Gujarat stands out too, with good policies and conditions. Uttarakhand, Uttar Pradesh, Madhya Pradesh, and Andhra Pradesh are also great for solar energy.
