Patna: Domestic electricity consumers in Bihar planning to install a 3 kW rooftop solar system can avail themselves of a collateral-free bank loan of up to Rs 2 lakh at an annual interest rate of 5.75% under the PM Surya Ghar Muft Bijli Yojana.
The electricity distribution company is facilitating the low-interest loan facility so that consumers do not face difficulty in making payments to agencies installing rooftop solar systems.
Consumers interested in availing themselves of the facility will have to apply through the electricity company.
Rs 98,000 subsidy for a 3 kW solar system
A 3 kW grid-connected rooftop solar system costs around Rs 1.80 lakh, based on an average installation cost of Rs 60,000 per kW. An additional Rs 10,000 to Rs 20,000 may be required for an iron mounting structure.
Under the existing central subsidy, consumers installing a 3 kW solar system receive Rs 78,000.
The Bihar government has now announced an additional Rs 20,000 state subsidy, taking the total subsidy to Rs 98,000 for a 3 kW system.
The state government has approved a budget of Rs 1,000 crore for the additional subsidy, which is expected to benefit around 5 lakh domestic electricity consumers.
Energy Minister Shailesh Kumar alias Bulo Mandal said the state subsidy would encourage the adoption of green energy and reduce the initial cost of installing rooftop solar systems.
Energy Secretary Ajay Yadav said the subsidy would be provided on a first-come, first-served basis.
How much subsidy will consumers get?
| Solar system | Approx. cost | Central subsidy | Bihar subsidy |
|---|---|---|---|
| 1 kW | Rs 60,000 | Rs 30,000 | Rs 10,000 |
| 2 kW | Rs 1.20 lakh | Rs 60,000 | Rs 20,000 |
| 3 kW | Rs 1.80 lakh | Rs 78,000 | Rs 20,000 |
For a 3 kW installation, the combined subsidy available from the Centre and Bihar government will be Rs 98,000.
26,000 consumers have already installed rooftop solar
According to the details available, around 26,000 electricity consumers in Bihar have installed rooftop solar systems so far.
The average cost of installing a grid-connected rooftop solar system is around Rs 60,000 per kW. Therefore, a 3 kW system costs approximately Rs 1.80 lakh, excluding the additional cost of the mounting structure.
Smart meter to track solar power generation
The rooftop solar system will remain connected to the electricity grid, while the installation agency will be responsible for maintenance.
Electricity consumption and solar power generation will be monitored through a net smart meter.
If a household consumes more electricity than it generates, it will have to pay for the additional consumption. If the solar system generates more electricity than the household uses, the surplus units will be carried forward to the following month.
Can a 3 kW solar system eliminate the electricity bill?
A 3 kW rooftop solar system can generate around 375 units of electricity per month on average, according to the information provided.
Under the state’s free electricity provision, 125 units are provided free of charge. Therefore, a household consuming around 500 units a month could potentially offset its consumption through the combination of free electricity and rooftop solar generation, subject to actual generation, consumption and applicable billing rules.
After the implementation of the Time of Day (ToD) tariff, the average electricity rate is expected to be around Rs 3.87 per unit.
The rooftop solar programme is aimed at reducing consumers’ electricity expenses while increasing the use of renewable energy across Bihar.
