Be it any housing society that has gone solar, all have come to understand that putting a solar system in place is a financially smart decision but primarily a step towards sustainability. By harnessing solar energy, housing societies have reduced electricity costs to a considerable extent and have contributed to a greener environment.
A perfect example of a saving of an astonishing ₹53 lakhs in less than four years on electricity bills by Maurishka Palace, a housing society, in Mangalore after installing the PV Solarize solar system is an example in itself as a case study where it proves the concrete advantages of solar energy as a cost-cutting measure.
PM Surya Ghar Muft Bijli Yojana makes this step yet more accessible with it dishing out liberal subsidies to install solar systems in housing societies. However, to avail of those subsidies, or to secure finance through a lending institution, is purely and simply the housing societies requiring the right documentation.
This guide outlines the necessary paperwork and eligibility criteria to ensure a smooth and successful solar installation for your housing society.
Documents Needed for Housing Societies to Receive the Solar Subsidy
Latest Paid Electricity Bill: This is to cross check electricity connection and consumption.
Copy of Aadhaar Card (Authorized Person): The Authorized Person representative of society, Aadhaar card copy.
Copy of PAN Card (Authorized Person): Authorized person’s PAN card.
Copy of the Society PAN Card : Official PAN card of the society
Property Paper: This may include a registry copy, 7/12 extract, Index-2 or property tax receipt to prove ownership.
Society Registration Certificate: Proof that society is incorporated.
Auth letter on Societies Letter Head: Letters authorizing particular persons to act as attorney of society on their behalf.
For information on specific document needs, contact the solar provider or the energy department in your state. There may be more or different documents in different states.
Additional documents:
- Bank account details
- No Objection Certificate (NOC) from municipal corporations
- Society bylaws
- Detailed project proposal
The Procedure for Housing Society Subsidy Applications
To avail of the benefits of the PM Surya Ghar Muft Bijli Yojana, follow these steps.
1. Registration and Application
Go to the official portal of PM Surya Ghar Muft Bijli Yojana. Fill up all the essential information required at that portal for the housing society to open an account.
Apply to get an installation application form for the rooftop solar panel along with the capacity installed and other related information. Then attach all necessary documents along with the identity proof, address proof, electricity bill, and roof ownership certificate in the said form.
2. Installation and Commissioning
Once the DISCOM gives its no-objection for installing your solar system as feasible, then and only then select a registered solar vendor like PV Solarize for installing your solar system. Apply for net-metering so you can exchange your excess electricity from the solar panel with the grid. Get a final inspection by the DISCOM in order to get a commissioning certificate.
3. Claiming the Subsidy
Use the portal to send in a cancelled cheque and your bank account information. The government will credit your bank account with the subsidy amount within the allotted time.
A society’s ability to finance solar installation is sometimes a worry for a number of reasons. Thankfully, there are a number of adaptable and reasonably priced financing solutions that make the transition to solar energy easier without placing an excessive burden on the Society’s finances.
Funding via the Corpus of Society
Eligibility: The society has enough money in their account.
What it covers:
Corpus financing is the financing of the solar installation through the existing funds in the society’s account. This might be money drawn from society’s reserves, sinking funds, or other pooled funds.
How to get it:
The first is approval at the AGM from the members of the society. The managing committee needs to pass a formal resolution authorizing the use of society funds for the solar project. Once approved, it can be funded by putting money forward from the society’s reserves or the sinking fund, thereby ensuring funding support for the project without any form of external borrowing.
OD Facility from the bank
Eligibility: credit history is good; cash inflow is enough; there is available collateral, if required
What it covers
The OD facility would be the most suitable option if the society maintains a good contact with a bank that is willing to give an overdraft loan at lower interest rates.
How to avail
Normally, most banks require a good credit record, financial documents, a viable project proposal, and the income and expenditure report for the society to enable them to make an assessment of its economic health and credit-worthiness. The society needs to negotiate terms such as overdraft limits and interest rates with the bank.
PV Solarize Financing
Eligibility: Should fulfill all the general eligibility criteria mentioned by PV Solarize and should be enrolled in PM Surya Ghar Muft Bijli Yojana.
What it covers:
At PV Solarize our Zero Investment Plan makes easy and cheap. The flexible EMI plan ranges from 6 months to 60 months and allows a plan of your choice so that it supports you according to your budget and proper financial plan.
How to avail:
In the PV Solarize programme, any down payment you make is completely repaid back by the government subsidy, meaning you start off with zero out-of-pocket costs. Your monthly EMIs will then be aligned to savings on your electricity bill; hence you pay nothing extra for a smooth transition. EMI payments are balance-shed by offsetting electricity bill savings.
Before finalizing the right source of finance, you have to get approval in the Annual General Meeting of your housing society for putting up solar.
After having a fair estimate of reasonable support levels of the members, you can manage to obtain the required approvals in the following manner:.
How to Get the AGM's Approval for Solar Installation
1. Get the AGM's approval
Determine members’ interest in a solar project prior to the AGM in order to garner support. At the meeting, make a concise proposal that includes the expenses, advantages, and environmental impact. To win support, respond to possible criticisms and emphasise long-term benefits.
2. Establish a Committee on Solar
Form a committee with individuals with project management, engineering, and financial expertise. Researching solar choices, communicating with vendors, controlling the budget, and project supervision are all part of their job description.
3. Quotation Requests (RFQ)
Send out an RFQ including the system size, schedule, warranty, maintenance, and project requirements. Consider price, vendor experience, and product quality while evaluating offers.
4. Hire a Solar Advisor
To guarantee appropriate design and implementation, work with a reliable solar advisor, like those from PV Solarize . They will facilitate decision-making and act as liaisons.
5. Inform Members of the Society
Run awareness campaigns to showcase the benefits of solar energy, including cost savings and environmental impact. Use brochures, Q&As, and success stories from other societies to build enthusiasm and keep members informed.
Are you prepared to switch? Select PV Solarize
To maximize these advantages of switching to solar power, choosing the correct solar provider is essential. With more than 150 dwelling projects under its belt, PV Solarize stands out for its track record. Our experience guarantees that you receive subsidies and take advantage of dependable, superior installations that lower your energy expenses while having a beneficial environmental effect.
Contact PV Solarize right now to make the transition to Sahi Solar.
FAQs
Q1. How long does it take to install solar for housing societies?
Ans. Installation of solar systems for housing societies typically takes 12-20 weeks. This includes:
– Planning and approval: 2-4 weeks for site assessment and approvals.
– Installation: 4-6 weeks to fit the system.
– Inspection and commissioning: 4-6 weeks for final checks and activation.
Factors affecting the timeline:
– System size: Larger installations take longer.
– Installation complexity: Roof type and structural issues can delay progress.
– Approval delays: Waiting for permissions and inspections can add time.
– Vendor efficiency: The experience of the solar vendor impacts the timeline.
Q2. When will the housing society get the solar subsidy?
The timeline for receiving this subsidy varies, depending on the approval process by the government authorities and their disbursal cycle. You can check your subsidy status through the national portal for rooftop solar.
Q3. How can the housing society apply for solar financing with PV Solarize ?
The criteria to qualify and apply for solar financing with SolarSquare are as follows.
The eligibility criteria for SolarSquare financing include the following:
| Profitability of the Society | Revenue should be positive |
| Maintenance Collection | 90% must be collected on Time |
| Capital + Reserves | Must be 10% of Loan Value |
| Power Bill Repayments | No dues |
| Right to Roof | To be present for solar installation. |
| Provision of borrowing in bye-laws | Should be available |
| Duration of present Society’s management committee and next election date | Minimum till loan tenure. |
| Any existing major loan from the Bank | Yes/No |
Documents required include the following:
- PAN CARD of society – Self attested
- KYC of signing authority ( Any 2 Member) – Self attested
- Registration documents – Self-attested
- List of members – Self-attested
- Contact details of signing authority
- Last 12 months’ bank statement
- The last 3 months’ electricity bill
- Last 2 years audited financials
- Quotation
Loan approvals are fast, often within 2-3 days. EMIs commence after the loan is approved.