The state of Gujarat has been the energy surplus state. The state doesn’t have frequent issues of interruptions in the electricity supply. Yes, rarely it does get turned off during the monsoon or for maintenance purpose. The Government of Gujarat has a scheme since 31st March 2016 for everyone interested installing Solar Power System for their homes. The government wants to provide a subsidy to up to 1,000,00 homes.

  • Minimum Requirement for Installation is 1KW System.
  • Gujarat Government will give the subsidy of Rs. 10,000 per KW and maximum of Rs. 20,000 for 2KW.  The Central Government will also add additional Rs. 20,700 for a subsidy.
  • The Actual cost for 1KW Solar Power System is Rs. 69,000 and after deductions of a subsidy, a home owner will pay approximately Rs. 41,000 total for the system.
  • 1KW Solar System can generate 120 units of power per month approximately (depending on weather conditions).  It can lead to huge savings on your electricity bill.

So, the time has come for everyone to jump in to take benefit of this offer!  This system will not store electricity in a battery.  It will come with a bi-directional meter (at an additional cost of approximately Rs. 2500 to Rs. 3000, to be paid to the power company).  During the day, as power is generated, your household appliances will use electricity generated through the Solar System and surplus of power will be directed back to the power company, for which you will receive a credit on your next power bill in terms of the amount – not a unit.  During the night, you will be using power company’s electricity. So, no issues of long term battery maintenance.

Solar System Diagram

Now, in simple terms.  My house is 2 stories.  We use approximately 100 units of electricity per month excluding summer.  During Summer, we have 2 AC units, which we use mostly at night and that shot up our monthly use to up to 400 units for the month of May and June!    Now, let’s take out 2 months of monsoon, where the sun may not be bright as during summer and winter.  You will generate over 2000 units of electricity through your 2KW solar power system.  So, you are expected to save at least 80% off your power bill per year or maybe 99%!   This system will be paid up in 3-4 years itself, and after that, you will use solar power for free!

The system comes with a 25 years warranty for solar panels and 5 years for other components such as inverter etc.

The only small point I don’t like is that per unit price will be different from what you give to your power company and what the power company charges you for providing the electricity.  For example, if per unit cost is Rs. 7 for electricity supplied by your power company to you, you will get nearly half or so, for selling them your surplus power.   I should rather have credits of units for units in this scenario.  Hopefully, it will be addressed in future.

Overall, this is definitely a MUST take the offer before the targeted quota is fulfilled for the approved subsidy for the people of Gujarat.  And for the other states, You may try to gain a benefit from central government subsidy.   It will still be a good option to take as system pays off itself as you use it.   In comparing to 5 years back, the solar system today is 70% cheaper!  So, start looking forward to the greener and cheaper energy for your need.