With the announcement of the new subsidy scheme for specific states Sikkim, Uttarakhand, Himachal Pradesh, J&K, Lakshadweep and Andaman & Nicobar Islands, there is reason to look at real numbers for the viability of rooftop solar.
Subsidy quantum available: a whopping 70%
Let’s get a clear idea of the difference this has made in the purchase of a rooftop solar power system. The following two graphs look at cash flows with 15% subsidy (earlier) and 70% subsidy (now). The assumption of tariff we have made is INR 4.2/unit (highest slab in the residential segment). Finally, the size of the system that has been assumed is of 5 kW.
Cash flows with 15% subsidy
Quantum of subsidy: 15%
Breakeven years: 12
Cumulative cash flows in 25 years: 6.35 Lakhs
Cash flows with 70% subsidy
Quantum of subsidy: 70%
Breakeven years: Reduced to one-third to only 4 years
Cumulative cash flows in 25 years: 9.8 Lakhs
Typically, a breakeven of 4 years can be expected only by industrial or commercial customers. It’s understandable how the proposition was economically unviable for the residential segment earlier and now residential customers are expected to jump at the subsidy while it’s available.
Let’s now look at the other parameters that play a role in the success of rooftop solar in Himachal Pradesh. For the most part of the year, Himachal Pradesh receives an irradiation more than the cut off required to support Solar PV (4.5 kWh/m²/day), an average of 5.99 kWh/m²/day (Summer months), 5.89 kWh/m²/day (in the wet monsoon months) (refer). With seasonal tracking, the efficiency in winters can be improved. So, Himachal looks like a decent place to install rooftop solar.
Himachal Pradesh also has net-metering regulations in place allowing you to connect your solar power system to the grid (refer). This serves as virtual storage avoiding the hassle of getting batteries and wastage (added cost).
So, all in all, the introduction of 70% subsidy has made Rooftop Solar a viable option for a residential customer. Now, it remains to be seen whether the subsidy amount will be disbursed on time. This will also determine the uptake of rooftop solar in Himachal Pradesh. The early off takers have a safer bet, so if you are desirous of subsidy, now is the time to go solar. Find out how much you should install by using our Solar Calculator and send us a request by clicking on I’m Interested.