Everything To Know About Solar Subsidy In Uttar Pradesh in 2022

The increasing cost of electricity and the alarmingly rising levels of pollution in UP have made the state government double its efforts in trying to encourage homeowners and housing societies to install rooftop solar systems.

The biggest motivation is being offered in the form of subsidies. A solar subsidy in UP 2022 is a matter of serious discussion and that’s what we have chalked out for you in this enlightening post.

If you’ve been meaning to install a rooftop solar system at your residence, there are certain conditions that have to be first met if you want to get a subsidy.

Want to know the specifics about a solar subsidy in UP, 2022: how much solar allocation target has the state received under the RTS phase 2 programme? How to apply for a subsidy for that matter?

If so, dive in and you’ll have all the information before we will conclude this guide.

An overview of solar subsidy in UP, 2022

Did you know that India has an ambitious goal of producing 4 GW of solar power from rooftop residential installations by the end of December 2024? The state of UP has been provided with the target of installing 4000 KW grid-connected rooftop solar systems under the RTS phase 2 program.

In order to meet its quota, the state government has been offering a subsidy to homeowners and housing societies.

For those of you who do not know how much subsidy is currently being offered, here’s a quick reference that’ll clear your basics:

• When installing a solar system between 1 KW to 3 KW, for every KW, the state government offers a fixed subsidy of 40% against the L1 prices.
• When installing a solar system above 3 KW and up to 10 KW, the state government offers a subsidy of 20% against the L1 prices.

What are the L1 prices against which a solar subsidy in UP, 2022 is being offered?

The L1 rates in every state differ; for UP, they’re:

• ₹37,000.00/KW for solar systems between 1 KW to 3 KW
• ₹33,000.00/KW for solar systems above 3KW and up to 10 KW

Please note: These are the L1 rates for UP excluding GST.

Top 3 conditions to avail of a solar subsidy in UP, 2022

We will take you through a complete list of the KW-wise solar subsidies in UP. But, first things first – we’d like to walk you through the top 4 conditions that have to be met if you want to get a subsidy in the first place.

1. The solar panels have to be ALMM-approved DCR modules only. DCR panels are those modules that are entirely made in India. Your solar inverter or any other component can be imported, but the panels should be made in India. Currently, the subsidy is offered only on polycrystalline panels because they’re entirely manufactured within the country.
2. The subsidy is offered for on-grid rooftop solar systems only.
3. For residential installation, the subsidy is capped at 10 KW. For housing societies, the subsidy amount is 20% of L1 rates for rooftop installations up to 500 KW.

Please note: There’s no subsidy that’s offered by the government of India for commercial and industrial sectors.

What are the KW-wise subsidy rates in UP in 2022?

Here comes the genie out of the bottle. You know the L1 rates and you know the percentage of subsidy that’s offered.

Now, we’re breaking down the subsidy amount further. Have a look.

How to apply for a solar subsidy in UP, 2022?

This is one of the most sought-after questions that we have finally decoded for you. Find out all the steps to be followed in the pointers mentioned below.

1. You will have to visit your state’s discom website.
2. There will be a list of empanelled solar vendors.
3. You can pick any vendor of your choice and discuss the installation details with the vendor.
4. Next, an officer from the discom will visit your house.
5. The purpose of the visit will be to ensure that all the technicalities for solar installation are being met.
6. After the clearance from the discom, your solar vendor will start the process of installation.
7. You will pay the money to the vendor minus the subsidy amount.
8. Once the installation is completed, the commissioning of the net meter will begin.
9. Once installed and commissioned, the solar system will start producing free solar electricity.
10. The discom will finally disburse the subsidy directly to the vendor.

The latest advancement in subsidy policy in India

Very recently – on the 30th of July 2022 – PM Narendra Modi announced and launched a National Solar Portal where customers from all over India can apply for a subsidy.

The new scheme is known as DBT (direct bank transfer).

The major difference between the state-wise subsidy policy and the DBT subsidy policy is that the customers have to apply for the subsidy in the latter. They will get the amount credited into their bank accounts within 30 days of the commissioning of the solar system. Putting it out simply, the customer has to pay the entire cost of installation to the installation company.

Conclusion:

Subsidies on solar systems won’t last forever. Once solar systems worth 4 GW will be installed, the subsidy will no longer be offered.

Everybody will sooner or later have to switch to solar energy since fossil fuels are finite.

On a parting note, we’d like to give out our verdict: it’s probably the best time to install a rooftop solar system and get the benefits of a solar subsidy in UP, 2022 while it’s still being offered.