Every state in India is being encouraged to become a “solar-powered green city,” and the Indian government adds that this goal is consistent with current worldwide trends in solar energy. An endeavor to lower the cost and increase accessibility of green and clean energy is the Punjab solar panel subsidy. Punjab and Haryana have similar geographical characteristics and experience 230–300 sunshine days annually. That gives the state’s industries adequate time to meet their entire electricity needs throughout a sunny year by using solar power. The state’s ambitions for solar installation can also be used to determine the state’s solar potential.Due to advancements in domestic solar systems, it is excellent for putting solar in residential neighborhoods, similar to the usage of solar energy in commercial settings. The citizens of Punjab now have the chance to increase their savings by lowering their excessive electricity costs and reliance on the public grid.
Punjab Residential Sector to Receive Solar Subsidy in 2022
For citizens of the state who want to switch to solar electricity, Punjab offers a solar incentive. The Punjab State Power Corporation Limited (PSPCL) would offer a maximum 40% rebate on benchmarked costs for rooftop solar power installation under net metering for the household sectors. The Punjab State Power Corporation Limited (PSPCL) provides subsidy support for rooftop solar systems that are linked to the grid and have a capacity between 1 kW and 10 kW. The incentive is anticipated to lower solar panel costs in Punjab for consumers in the residential sector. The Central Financial Assistance (CFA) or subsidy for a rooftop PV solar system will be determined by the system’s capacity, benchmarked cost, or, if lower, the cost determined through a competitive process.
Punjab Commercial Sector to Receive Solar Subsidy
In accordance with MNRE, Punjab State Power Corporation Limited (PSPCL) would offer Central Financial Assistance (CFA)/Subsidy for Grid Connected Rooftop Solar Plants under Net Metering. According to the availability of money from MNRE, GOI, CFA will be offered. MNRE, GOI offers up to 40% in subsidies for rooftop solar power plant installations in domestic sector organizations.
5 Reasons why Punjab should go solar
- Punjab’s Potential for Solar Energy
Punjab provides enough sunlight each year for enterprises located there to use solar energy to meet all of their energy needs. The state’s goal for solar installation provides more insight on the possibilities of solar in the state. According to a draught of Punjab’s renewable energy strategy released in October 2019, the state aims to develop 3000 MW worth of solar power projects by the year 2030.
- Punjab sees a rise in solar energy installation capacity
Since 2012, the installation of solar energy has consistently increased across all industries in the state of Punjab. By producing more than 6,034 Lakh units (MU) of solar energy over the past four years, Punjab has established itself as a leader in the area. This increase in capacity shows that consumers in the state have accepted solar and are reaping its benefits, given that solar systems involve a large investment and that adopting solar cost a lot more ten years ago than it does today.
- State’s Favorable Solar Policy
As mentioned above, Punjab’s commercial and industrial power consumers benefit greatly from its favourable solar policy. With Punjab’s Solar Policy, businesses and industries can take advantage of a 40% accelerated depreciation on the cost of their solar systems. The programme also permits a 10 year tax exemption for solar projects and a reduction in custom and excise duties on solar equipment. For projects using renewable energy, the programme provides a path for a solar loan of up to INR 15 crore under the priority sector lending. Businesses can also sell the extra electricity they generate to the DISCOM in accordance with the policy’s unique tariff rate courtesy to the state’s net metering programme.
- Continually Rising Electricity Prices in Punjab
A petition for a 14% increase in the state’s electricity tariff for consumers was submitted to the state power regulator by the Punjab State Power Corporation Limited in January 2020. The announcement of the increase is anticipated to occur in April 2020. Just last year, a comparable increase of almost 2.15% was imposed on customers across categories. Even modest tariff hikes may not have much of an impact on domestic consumers, but due to the large power usage of commercial and industrial categories, they drive up annual electricity costs by thousands of dollars. thus having an effect on revenue as well. Going solar prevents such rate increases, providing business owners with certain financial security.
- Possibilities for Business Growth in Punjab
Punjab has the simplest regulations for establishing a business. It serves as a major hub for businesses in the fiber, ready-to-wear, and hosiery sectors of the textile industry. Chandigarh, the state’s capital, has developed into a key location for the expanding IT and education sectors, and other cities in the region, including Mohali, Ambala, and Panchkula, have become thriving hubs for SMEs and MSMEs of all kinds. The state has a lot to offer as a potential for business. Businesses, with a yearly GDP of about 6%. Furthermore, power will become a crucial expense as enterprises expand throughout the area. Businesses that use solar energy can reduce this cost by up to 80% and use the money they save to accelerate their growth.