Chandigarh's Solar Puzzle: Government Subsidies Abound, But Household Adoption Lags
In the meticulously planned city of Chandigarh, a significant energy paradox persists. Despite substantial government subsidies and incentives available under the central government's PM Surya Ghar: Muft Bijli Yojana (PMSGMBY), the adoption of rooftop solar power plants among private households remains surprisingly limited. This tepid response has prompted the Chandigarh Renewable Energy, Science & Technology Promotion Society (CREST) to release a comprehensive cost-benefit analysis, aiming to showcase the undeniable financial advantages that solar power presents to homeowners.
CREST's Financial Breakdown: From Savings to Substantial Profits
According to the detailed study conducted by CREST, a typical rooftop solar installation with a capacity ranging from 2 kWp to 3 kWp can lead to a significant reduction in monthly electricity bills. The analysis projects savings between Rs 1,000 and Rs 2,000 every month. This translates to impressive annual savings of approximately Rs 13,000 to Rs 14,000, with the exact figure depending on the specific system size and the household's power consumption patterns.
The financial viability is further underscored by the payback period. CREST indicates that such solar systems typically achieve complete cost recovery within a span of four to five years. Following this payback phase, the plant continues to operate for its remaining lifespan, which often extends from 20 to 25 years. Over this extended period, homeowners stand to realize net profits that can soar as high as Rs 4 lakh, positioning solar energy as a remarkably lucrative long-term investment for residential properties.
Case Studies: Illustrating the Tangible Benefits
To provide concrete examples, CREST examined specific scenarios. For a 2 kWp system assuming an average monthly consumption of 700 kWh, the analysis reveals compelling numbers. When purchased without a loan, the system delivers monthly savings of approximately Rs 1,156 on electricity bills and reaches its payback point in under five years. After recouping the initial investment, it generates pure annual savings in the range of Rs 13,800 to Rs 14,000. Over the full utility period of the plant, this accumulates to a net profit of roughly Rs 2.86 lakh for the homeowner.
The benefits remain highly attractive even when the system is financed through a loan, which is available at low interest rates under the PM Surya Ghar scheme. During the loan repayment period, households can enjoy immediate monthly savings of about Rs 490. Over the entire lifespan of the solar plant, the total profits in this financed scenario are estimated to reach around Rs 2.66 lakh, demonstrating that financial constraints need not be a barrier to entry.
The Generous PM Surya Ghar Scheme
The central government's flagship PM Surya Ghar: Muft Bijli Yojana is designed to make solar adoption accessible. It provides substantial subsidies of up to Rs 78,000 for systems up to 3 kWp. Additionally, the scheme facilitates access to collateral-free loans at preferential interest rates, typically around 5.75% to 6%. It offers single-window support for installation and permits, and ensures direct benefit transfers of subsidies to streamline the process for consumers.
The Stark Contrast: Government vs. Private Sector Adoption
The progress in solar adoption within Chandigarh reveals a stark dichotomy between the government and private sectors. CREST has achieved a commendable 100% coverage across all eligible 6,606 government houses in the city. In sharp contrast, the private sector tells a different story. Among approximately 43,000 eligible private houses in Chandigarh, only 4,352 have installed rooftop solar systems to date. This number includes just 1,034 installations that have been facilitated under the PM Surya Ghar scheme, highlighting a significant untapped potential.
Detailed Financial Scenarios for a 3 kWp System
Case 1: Purchase Without a Loan (Full Upfront Payment After Subsidy)
- Rooftop area required: 18 to 22 square meters.
- Electricity bill without solar: Rs 3,295.
- Monthly generation from a 3 kWp plant: 321 kWh.
- Monetary value of generated power: Rs 1,733.
- Total plant cost (including all expenses and GST): Rs 1,80,000.
- Central Financial Assistance (subsidy): Rs 78,000.
- Net cost to consumer after subsidy: Rs 1,02,000.
- Electricity bill after solar offset: Rs 1,562 per month.
- Monthly savings: Approximately Rs 1,733.
- Return on Investment (Payback period): 4.9 years.
- Pure annual profit from the 5th year onward: Rs 20,500 to Rs 21,000 per year.
- Total profit over 20 years: Rs 4.17 lakh.
Case 2: Purchase With a Loan (EMI Financing, Zero Upfront Net Investment)
- Electricity bill without solar: Rs 3,255.
- Monthly generation: 321 kWh (value: Rs 1,733).
- Total plant cost: Rs 1,80,000.
- Loan amount (90% of cost at 6% interest): Rs 1,62,000.
- Consumer initial payment: Rs 18,000.
- Subsidy (adjusted): Rs 60,000.
- Effective loan amount after subsidy: Rs 1,02,000.
- Net total investment by consumer: Rs 0.
- Monthly EMI (10 years): Rs 1,133.
- Electricity bill after solar offset: Rs 1,522 per month.
- Monthly profit during loan period (Years 1-10): Rs 600.
- Annual profit during loan period: Rs 7,200.
- Pure annual profit from Year 11 onward: Rs 20,500 to Rs 21,000.
- Total profit over 25 years: Rs 3.81 lakh.
The comprehensive data from CREST presents an unequivocal case for rooftop solar in Chandigarh. With substantial government backing, clear financial benefits, and multiple financing options, the analysis seeks to bridge the information gap and encourage more private households to harness the power of the sun for both economic gain and environmental sustainability.
