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Tuesday, 25 November 2014

Know, Solar Subsidy of Water Pumps by NABARD & its guidelines.

MNRE has revised its guidelines for procuring subsidy from NABARD for Solar PV systems and Solar Water Pumps in OCT 2014, below are few highlights from the revised guidelines

  • Only individuals, SHGs, NGOs and Farmer Groups are eligible under this scheme
Benchmark Costs / Subsidy Percentage – Minimum available subsidy is Rs 24 / Wp
  • Rs 75 / watt Subsidy for systems up-to 300Wp
  • Rs 39 / watt with Battery Power Plant 
  • Rs 24 / watt  without battery bank
  • Rs 28800 / HP for solar water Pumping system 

Loan and Margin Money
  • 20% of system cost has to be paid as margin money
  • 40% cost of the system can be financed from the bank in minimum rate with term of 5 years
  • Remain 40 % Subsidy
  • Submit an application to procure a loan for Solar home lighting system/Solar water pumping available from NABARD at your local bank
  • After your loan application is approved, you would have to deposit 20% of the margin money, depending on the size of your solar system/solar water pumping system
  • Your Bank Manager forwards your application to an approved Vendor/Channel Partner
  • Channel Partner completes the installation process
  • Bank Manager/Field Officer inspects your installation to ensure that only MNRE approved components are installed
  • Your application will be sent to NABARD to release the subsidy amount
  • After Subsidy amount is released from NABARD, Bank keeps the subsidy amount as a collateral towards your loan
  • If you default on the loan, you will not be eligible for subsidy amount, you will be responsible for repaying entire loan amount for your system
Practical IssuesAs you are aware there are several practical issues involved in getting your loan application approved, your system installed and your subsidy application is submitted/approved and subsidy amount procured from NABARD, below are few practical issues and solutions to circumvent those issues
Local BankIf you are living in an urban or semi-urban area, your local bank manager might not respond favorably to your request for solar loan, most urban and semi-urban banks are overloaded and they would not be interested in processing your loan application for following reasons
  • Your local bank is not aware of the procedure involved in processing your solar loan application under NABARD Scheme
  • Your local bank is not sure if they would be able to get your subsidy approved from NABARD
  • Your local bank is not interested in processing solar loans as there is a lot of paperwork involved and there is no incentive for the banks to process your loan
  • Your local bank does not have any directive from their regional or corporate office to offer solar loans
  • Your local bank does know/have any NABARD approved vendors to install these solar systems
  • Reach out to other interested parties in your area who are interested in these solar systems
  • Form a group of 10 to 15 interested parties approach your bank as a group
  • Reach out to one of the approved vendors/manufactures and let them know that you have a big group of interested individuals
  • Approved vendors will advice your local bank on the process involved and they will handle necessary paperwork
Authenticity of Vendors
There are several individuals and companies who claim to be authorised dealers and sub-dealers of NABARD approved manufacturers and you are not sure which of these individuals and companies are authentic
All NABARD approved manufactures provide a letter of approval to their authorized dealers for NABARD program, request a copy of approval letter from the individuals/companies
NABARD program requires 25 years of warranty for Solar Panels and 5 years warranty balance of the system including solar inverter and batteries
  • Ask for warranty cards for all the components including solar panels, inverter and batteries
  • Ask these companies to provide references from their previous installations
  • Make sure that these companies have significant local presence and make sure that they are not fly-by-night companies
Solar Plant Capacity
You are not sure about solar plant capacity that you need to install to support your usage
Visit our website to configure your solar plant size based on your actual usage
You want to become a dealer
You are interested in becoming a dealer for installing solar systems as there are no companies in your area offering these services
Most NABARD approved manufacturers have their dealer network through out the country, select a manufacturer whose dealer network is the strongest in your area, approach the local dealer and express your interest in becoming a sub-dealer, ask the dealer to provide you with necessary training on the solar products and technology
  • Build a team of electricians and get them trained on how to install and wire solar panels, inverter and battery banks
  • Rent a physical location and offer a service point and post installation support for up-to 5 years
Other issues
If you have any other questions/issues in getting these NABARD systems installed let us know, we will add additional sections to this article addressing those questions/issues

Contact L'obel Solar Power System

Our knowledgeable staff are readily available to discuss your solar requirements. Please e-mail us at

L'obel Solar Power System

Technical Engineer & Sales:
Mr Chintan      +91 93270 07854

Services / AMC / Complain:
Akshay Gandhi      +91 093270 07852

Office Address:
"Lobel House" 65 Mihir Park, O P Road,
Opp Mitta Apartment,  Nr Tube Company,
Vadodara - 390020, Gujarat - India.

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Monday, 3 November 2014



As Lobel Solar Net metering is a billing mechanism that credits solar energy system owners for the electricity they add to the grid.

Net metering allows residential and commercial customers who generate their own electricity from solar power  to feed electricity they do not use back into the grid.

How It Works as per Lobel Solar Power System ?

Let’s say that you have a solar Photovoltaic (PV) system installed in your home. That system is generating power, and that power is converted from direct current (DC) to alternating current (AC) via an string inverter or micro inverter so that it can be used throughout your home.

However, while you’re away from home; at work and the sun is strongest, not all the energy your home solar PV system generates is actually being used by your home, and this is where net metering comes into play. 

Benefits & Advantages of NET Metering
  • Reduction in Energy Bill
  • Become your own Energy Source
  • Less Pay Back period
  • Less Dependence on Utility Company
  • Conservation of Nature – No Carbon fuels – No Green House Gases Emission
  • No Maintenance– Hassel Free Power for next 15 years
With a net metering system, your electric company will absorb all the extra energy your home generates which matches the voltage of the electricity flowing through the power line and use it to power other homes where power is demanded.

As that excess energy is being generated, your power meter spins backward rather than forward, giving you a credit that you can use to pay for your future energy use.

In exchange, your electric company will give you credits that will apply to your monthly electric bill, thus saving you money. You can roll over excess electricity to your next bill, just as many cell phone companies let you roll over minutes).

If you've generated more energy than you've used at the end of the year, your electric company may pay you back for  the extra power at the retail rate.