Solar in Punjab: Capacity, Potential and Solar Subsidy (2024)

To understand the potential for the solar business in Punjab, you must know how many MSMEs are there in the state as MSMEs are known to be the biggest power consumers. As per stats, Punjab has close to 1.6 Lakh MSMEs.

Punjab shares the same geographical features as Haryana and has 230-300 sunny days per year. That allows businesses to generate electricity through solar power throughout the year.

Since 2012, solar energy installation in Punjab has been steadily increasing. From zero in 2010 to 136.4 MW in 2019, the installed capacity of rooftop solar systems has increased by more than 100 times in the state. Given that a solar system takes significant investment, this increase in capacity reflects consumers’ acceptance of solar and its benefits.

The northern state of Punjab has an installed solar capacity of 1118 MW. Recently, Union minister of new and renewable energy and power RK Singh stated that Punjab generated over 6,034 million units (MU) of solar power in the last 4 years, a figure which was much higher than any state in the northern region.

Punjab has installed the country’s first satellite-controlled single-axis tracking east-west tilt technology-based solar power plant at Lalpur village, with a capacity of 4.2 MW.

When compared to solar power plants with standard fixed-type structures, the single-axis tracking east-west tilt technology follows the path of the sun during the day to create 8% more units of electricity. According to Punjab government data, numerous corporations have already spent over Rs 1,300 crore on solar power projects, with another Rs 1,700 crore in the process.

Residential consumers installing grid-connected rooftop solar power systems can avail the Central Financial Assistance (CFA) through the newly launched National Portal for Rooftop Solar launched by the government.

The incentive details are as follows:

• From 1kW to 2kW capacity: ₹30,000/ kW
• For 3kW capacity: ₹30,000/ kW till 2kW and an additional ₹18,000.
• For systems over 3kW capacity: ₹78,000 (fixed)

The major industries in Punjab include food processing, tractors and auto components, agro-based parts, bicycle and bicycle parts, sports goods, light engineering goods, metal and alloys, chemical products, and textiles. Let’s analyze the state from the perspective of solar developers.

Here is the basic energy consumption of the three primary industrial segments of the state:

The energy consumption of this segment is lesser than the other two segments. Up to 30kW solar solution is enough for Residential & Agricultural.

• Punjab’s population in 2020/2021 is 30.49 Million.
• The total no of farmers is 10.93 lakhs in Punjab.

(There are 10.93 lakh landholders, with 2.04 lakh (18.7%) being marginal farmers, 1.83 lakh
(16.7%) being small farmers, and 7.06 lakh (64.6%) having land larger than 2 hectares.)

The energy consumption of this segment is more than Residential & Agricultural. A solar plant capacity of up to 100kW is enough for small and micro businesses in Punjab.

• Punjab has 237 cities and towns & 12,278
• More than approximately 6.3 crore enterprises registered. (till Dec 2021)

The energy consumption of these industries is very big, so these industries need 500 kW or more capacity solutions.

• In Punjab, there are approx. 2,52,741 manufacturing companies.

(Note: To know more about solar tender & projects in Punjab, Please visit
“www.PEDA.gov.in” )

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Ornate Solar is India’s leading solar company with 8 years of experience. By partnering with the best-in-class global solar brands, we bring the most reputed solar panels, inverters, and solar accessories to you and make your shift to solar cost-effective and easy.

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For more information, please give us a call at 011 4353 6666.