Challenges with Subsidy Calculation under MNRE’s Pradhan Mantri Suryaghar Yojna for 2 kW and 3 kW Connections -

Under the Pradhan Mantri Suryaghar Yojna, the Ministry of New and Renewable Energy (MNRE) is the central authority providing financial assistance for the installation of solar power systems across India. In Uttar Pradesh, an additional state subsidy of ₹15 per watt is provided, further enhancing the affordability of solar installations for consumers. This blog explores the subsidy calculation and net metering issues when installing solar power systems for 2 kW and 3 kW connections, especially in the context of available panel wattages.

Net Metering and Subsidy Calculation

The Pradhan Mantri Suryaghar Yojna, governed by the MNRE, provides a subsidy based on the solar panel wattage and system capacity you install. This subsidy is divided into different brackets, with a ₹30 per watt subsidy for the first 2000W, and a reduced subsidy of ₹18 per watt for capacities above 2000W, up to 3000W. Additionally, Uttar Pradesh offers an extra subsidy of ₹15 per watt for up to 2000W.

However, one of the key challenges faced by consumers is the difficulty of matching the exact system capacity of 2 kW or 3 kW with the available panel wattages in the market. Panels are available in 575W, 565W, 560W, 540W, 535W, 520W, and other sizes. Because of these wattages, some combinations may lead to challenges when it comes to net metering or meeting the exact required capacity.

Solar Panel Wattages and Net Metering Constraints

Let’s look at the problem that arises when using solar panels to match the required connection capacity for 2 kW and 3 kW systems:

For a 2 kW connection:

Required Capacity: 2000W (2 kW)
Available Panels: The panel wattages available are 575W, 565W, 560W, 540W, 535W, 520W, etc.

Here’s the issue:

For 575W panels: You would need 3 panels to reach 1725W (575W × 3 = 1725W), which is under 2000W.
For 520W panels: You would need 4 panels to reach 2080W (520W × 4 = 2080W), which exceeds 2000W.

Since there is no exact combination of panels that will give 2000W, consumers typically install 3 panels of 575W, totalling 1725W. However, this creates net metering issues, as the official guideline restricts connections to 2 kW (2000W), and your system generates less than that.

For a 3 kW connection:

Required Capacity: 3000W (3 kW)
Available Panels: Again, using the 575W panel, you would need to install 5 panels to get 575W×5=2875W. This is still below 3000W but is a practical solution, as no exact combination exists to reach 3000W. Similarly, the state net metering may accept this 2875W installation.

Subsidy Calculation for 2 kW and 3 kW Connections

Let’s go over the subsidy calculation for 2 kW and 3 kW connections in Uttar Pradesh.

For a 2 kW connection with 3 panels of 575W:

Installed Capacity: 575W × 3 = 1725W (Below the 2000W limit)
Subsidy Calculation under Pradhan Mantri Suryaghar Yojna:
- For the first 2000W, the subsidy is ₹30 per watt: 2000W × ₹30 = ₹60,000. Since only 1725W is installed, the subsidy will be: 1725W × ₹30 = ₹51,750
Subsidy Calculation under Uttar Pradesh State Subsidy:
- ₹15 per watt is provided for up to 2000W: 2000W × ₹15 = ₹30,000 Since 1725W is installed, the subsidy will be: 1725W × ₹15 = ₹25,875
Total Subsidy for 1725W: The total subsidy for a 1725W installation would be:

For a 3 kW connection with 5 panels of 575W:

Installed Capacity: 575W × 5 = 2875W (Below the 3000W limit)
Subsidy Calculation under Pradhan Mantri Suryaghar Yojna:
- For the first 2000W, the subsidy is ₹30 per watt:
- For the remaining 875W (after the 2000W limit), the subsidy is ₹18 per watt: 875W × ₹18 = ₹15,750
- Total subsidy under Pradhan Mantri Suryaghar Yojna:
Subsidy Calculation under Uttar Pradesh State Subsidy:
- For up to 2000W, the state subsidy is ₹15 per watt: 2000W × ₹15 = ₹30,000
- For the remaining 875W, the state does not provide any subsidy since it is above 2000W.
- Total state subsidy: $₹30, 000$
Total Subsidy for 2875W: The total subsidy for 2875W would be:

Key Points to Remember

Net Metering Issues:
While 3 panels of 575W can provide 1725W for a 2 kW connection, it still remains below the required 2000W. Similarly, for a 3 kW connection, 5 panels of 575W provide 2875W, which is below the 3000W net metering limit but still causes challenges in terms of excess generation.
Module Combinations:
There is no exact panel combination that fits perfectly within the net metering limits of 2 kW or 3 kW connections. Consumers may need to adjust their installations and rely on the available panel sizes.
Subsidy Eligibility:
The subsidy is based on the installed wattage, not the connection capacity. Therefore, while you install 1725W or 2875W, you will still be eligible for subsidies based on the actual installed wattage, as shown in the calculations.

Conclusion

When installing solar power systems under the Pradhan Mantri Suryaghar Yojna, administered by the MNRE, and utilizing the Uttar Pradesh state subsidy, it’s crucial to consider both the subsidy structure and net metering guidelines.

For a 2 kW connection, installing 3 panels of 575W gives a total capacity of 1725W, and the combined subsidy (from MNRE and Uttar Pradesh) would be ₹77,625.
For a 3 kW connection, installing 5 panels of 575W gives 2875W, and the combined subsidy would be ₹105,750.

Although exact panel combinations to match 2 kW or 3 kW capacities are difficult to achieve, the subsidies and incentives help to make solar installations more affordable for consumers in Uttar Pradesh.