US states of California and Illinois allow net metering. It is very simple. The end users install a power meter. Whenever power is produced the watt-meter runs backwards. Whenever power is consumed the watt-meter runs forward. The end user pays for the consumption of the “net power” used, which is power consumed – power produced.
The central subsidy of 30% applies to both on grid and off-grid systems and it is easy to avail. The cap on the subsidy is Rs 30,000 for a 1 KVA installation.
The government of Tamil Nadu, allows net-metering, in a rather unfriendly manner and subsidizes the cost by 20%...But there is a lot of Buts...
1. First of all , the System MUST be tied to the grid. Tamil Nadu government is notorious for shutting down industries (in Coimbatore) by Un-announced power cuts. So it reduces the usability of Solar System.
2. In addition the voltage from the grid, is rarely 220 V , often it falls much lower. So when tied to the grid, the voltage you produce would also be lower (around +5 V of grid voltage)
3. If following all the "conditions" the Tamil Nadu state government, you still will not get paid for any excess power produced.
4. Also most (good) electricians i spoke to are shying away from providing any help on getting the state subsidy.
5. There will be an at-home inspection, to be scheduled at the whim of the state government and your installation has to "pass" the inspection. It could cost you a substantial and un-predictable sum as bribe..to pass the inspection. If you have the influence then go for it.
6. Connecting to the grid, taking in to account the unpredictable voltage variations, does substantially increase the cost by 15%.
So before jumping on the state subsidy, watch out for the catch, and ensure it mathematically benefits you.
Please click here if you are considering to install solar power. This blog has 900 US visits, the technical information applies to both India and US, however the blog is more specifically meant for home owners in India wanting to install solar power.
Click here to know the pit falls to watch out for when installing solar power.
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