There is huge enthusiasm among the people about the ‘PM Surya Ghar Free Electricity Scheme’ of the Central Government. Everyone wants to get rid of expensive electricity bills forever by installing solar panels on their roof. But, there is a big technical hurdle before filling the form of this scheme. There are two types of solar systems available in the market, on-grid and off-grid. If you choose the wrong panel without complete information, you may lose a huge subsidy of up to Rs 78,000 from the government. Let’s decode all this mathematics.
How will electricity bill become zero with on-grid system?
On-grid solar technology works by connecting directly to the government electricity grid. Its biggest economic advantage is that it does not use expensive batteries at all. During the day, when the sun is strong, the electricity generated from these panels runs the appliances in your house easily.
If more electricity is generated than consumed, it is sent back to the government grid under the ‘net metering’ system. At night, when the panels do not generate electricity, you can take supply back from the grid. In this entire process, your excess electricity is purchased by the government, due to which your bill comes to zero or minus at the end of the month. Most importantly, under PM Surya Ghar Yojana, subsidy of up to ₹ 78,000 is given only on installation of this system.
Why is there no government help on off-grid systems?
Off-grid system has no direct connection with the government electricity department network. It is a completely independent framework that does not rely on heavy batteries. During the day, the panels generate electricity which runs the house and the remaining energy charges the batteries. These batteries illuminate the house at night.
Since it uses expensive batteries, its initial cost is two to three times more than on-grid. Apart from this, the consumer also has to bear the heavy expense of changing the battery every four-five years. This is the reason why the government does not give any subsidy on this expensive system. This structure is suitable only for those remote hilly or rural areas where there is a long power cut of 12 to 15 hours.
Hybrid model will provide permanent relief from power cuts
If there are intermittent power cuts in your area, but you do not want to give up the benefit of government subsidies, then hybrid solar system is a great option. This technology is a perfect blend of on-grid and off-grid. Due to being connected to the grid, you get the full subsidy of the scheme. At the same time, a small battery can also be added to it for power backup. However, this structure hits your pocket a little harder than a typical on-grid setup.
Which option will be a profitable deal for you?
If you live in a city or town where power cuts are rare, then blindly investing in an on-grid system would be the wisest move. This has three direct benefits. First, this system is very cheap and heavy subsidy is available on it. Second, net metering eliminates bill tension. Thirdly, due to the absence of batteries, there is no hassle of maintenance and the panels provide service without any problem for 25 years.
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