Feasibility of Solar Power Plant Installation for Housing Societies

Kiran Beldar · Aug 2, 2023 · 15 mins read

Can we install solar projects on housing society?

Installing solar projects on housing societies is a great way to generate renewable energy, reduce electricity costs, and contribute to environmental sustainability. Many housing societies around the world have already embraced solar power as a viable alternative to conventional energy sources.

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Here are the general steps involved in installing a solar project on a housing society:

Feasibility study: Conduct a feasibility study to assess the suitability of the housing society for solar installation. Factors like available space, orientation of buildings, shading, and local weather conditions need to be considered.

Engage with professionals: It's essential to hire qualified solar energy experts, engineers, or consultants who can design a customized solar system based on the specific needs and requirements of the housing society.

Obtain permissions: Depending on local regulations and laws, you may need to obtain permits and approvals from local authorities before proceeding with the installation.

Financing: Determine the financing options for the project. Housing societies can self-fund the installation or explore possibilities for third-party financing, leasing, or taking advantage of government incentives and subsidies for solar installations.

Solar panel installation: Once the designs are finalized, solar panels will be installed on rooftops or any available open spaces within the housing society.

Electrical setup: The solar panels will be connected to the electrical system of the housing society through inverters and other necessary equipment.

Monitoring and maintenance: Implement a system to monitor the performance of the solar installation regularly. Additionally, establish a maintenance plan to ensure the solar panels function optimally over their lifespan.

Benefits of installing solar projects on housing societies include:

Reduction in electricity bills: Solar power can significantly lower electricity costs for the housing society, especially over the long term.

Environmental impact: Solar energy is clean and renewable, reducing greenhouse gas emissions and contributing to a cleaner environment.

Energy independence: Solar power provides a degree of energy independence and resilience to the housing society, reducing reliance on external energy providers.

Community engagement: Embracing renewable energy can foster a sense of community and shared responsibility for sustainability.

Which permissions are required to install solar projects on housing societies in India:

The permissions required to install solar projects on housing societies in India may vary depending on the state and local regulations. However, some common permissions and approvals that are typically required for solar installations in India include:

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Building plan approval: If the solar installation involves any structural changes or additions to the building, it may require approval from the local municipal or development authority.

No Objection Certificate (NOC): The housing society may need to obtain an NOC from the local electricity distribution company (DISCOM) or relevant authority to connect the solar system to the grid.

Electrical Inspector's approval: The solar installation should comply with the relevant electrical safety standards, and the design may need approval from the Electrical Inspectorate or other authorized electrical inspection agencies.

Environmental clearance: Large-scale solar projects may require environmental clearance from the State or Central Pollution Control Board, depending on the scale and location of the installation.

Fire Safety approval: The solar installation should adhere to fire safety regulations, and approval from the local fire department may be necessary.

Land-use permissions: If the solar project is ground-mounted or involves utilizing open spaces within the housing society, appropriate land-use permissions need to be obtained from the local planning authorities.

Rooftop rights and ownership: In the case of individual apartment owners within the society, the solar installation should not infringe on the rights and ownership of other residents. Written consent from all stakeholders may be required.

Net Metering approval: For grid-connected solar systems, the housing society may need to apply for net metering approval from the DISCOM to enable the export of excess solar power to the grid.

Government incentives and subsidies: Depending on the state or central government policies, there may be various incentives, subsidies, or benefits available for solar installations. The housing society may need to apply for and fulfill specific requirements to avail of these incentives.

Can we get subsidy for installation of Solar plant on housing society in India:

India had various government schemes and policies that provided subsidies and incentives for the installation of solar plants, including those on housing societies. However, please note that government policies and programs can change over time, and it is essential to check for the most recent updates regarding subsidies and incentives.

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Some of the common subsidies and incentives available for solar installations in India included:

Ministry of New and Renewable Energy (MNRE) Subsidy: The MNRE offered financial incentives to promote the adoption of solar power, including subsidies for residential and institutional installations.

Solar Energy Corporation of India (SECI) Subsidy: SECI, a government agency, also implemented various subsidy schemes to encourage solar adoption, including rooftop solar installations on residential and commercial buildings.

State Government Subsidies: Many state governments in India provided additional subsidies and incentives to promote solar installations. These schemes varied from state to state and were subject to change over time.

Net Metering Benefits: In some states, housing societies could benefit from net metering, where excess solar power generated by the solar plant is fed back to the grid, resulting in reduced electricity bills.

Accelerated Depreciation Benefit: Commercial and industrial entities, including housing societies, could claim accelerated depreciation benefits on their income tax for solar installations.

Goods and Services Tax (GST) Benefits: As of 2021, solar equipment and services attracted lower GST rates, making the overall cost of installation more affordable.

What is the maximum capacity of solar power we can install on housing society for RTS-Phase II Subsidy scheme?

The maximum capacity of solar power that could be installed under the RTS-Phase II (Rooftop Solar Phase II) Subsidy scheme was 10 kilowatts (kW) for residential consumers or Maximum 500kW for all residents in society, including housing societies. The scheme aimed to promote the adoption of rooftop solar systems in India and offered subsidies to residential consumers for installing solar plants on their rooftops.

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Can we combine the electricity net meter for housing societies and distribute to consumer:

Yes, it is possible to combine the electricity net metering system for housing societies and distribute the solar power to individual consumers within the society. This concept is commonly known as "group net metering" or "virtual net metering."

Here's how it generally works:

I**nstallation of Solar Panels:** The housing society installs solar panels on its rooftops or any available open spaces. These solar panels generate electricity from the sunlight.

Grid Connection: The solar panels are connected to the electricity grid through a net metering arrangement. This means that any excess electricity generated by the solar panels can be fed back to the grid, and the housing society earns credits for this surplus energy.

Allocation of Credits: The net metering system allows the housing society to accumulate credits based on the surplus solar electricity it generates. These credits are usually recorded in kilowatt-hours (kWh).

Distribution of Credits: The accumulated credits can then be virtually allocated to individual consumers within the housing society. Each consumer's electricity bill is reduced by the number of credits they receive, effectively offsetting their electricity consumption.

Equitable Distribution: The distribution of credits can be done based on the share of solar generation each consumer is entitled to, either according to their contribution to the solar installation or a predetermined allocation method.

Group net metering is especially beneficial in housing societies where not every individual unit can have its own separate solar installation. It allows all members of the society to benefit from the shared solar generation, promoting clean energy adoption and cost savings for everyone involved.

Can we separate the electricity net meter for housing societies and distribute to consumer under only one solar net metering application to DISCOM:

Yes, it is possible to separate the electricity net meter for housing societies and distribute the solar power to individual consumers under one solar net metering application to the DISCOM (Distribution Company). This can be achieved through a concept known as "virtual net metering" or "group net metering," which allows a single solar installation to benefit multiple consumers or units within a housing society.

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Here's how it generally works:

Installation of Solar Panels: The housing society installs a solar power system, such as solar panels on rooftops or an open area, to generate electricity from sunlight.

Net Metering Application: The housing society applies for a single net metering connection with the DISCOM, which allows them to export any excess electricity generated by the solar system to the grid and receive credits for it.

Credit Allocation: Once the net metering connection is approved, the DISCOM will keep track of the surplus solar energy generated by the housing society. Instead of crediting the surplus energy to the housing society's account, it will be virtually allocated or divided among the individual consumers or units within the housing society.

Distributing Credits: The accumulated credits are then allocated to individual consumers based on their share of the solar generation. Each consumer's electricity bill will be reduced by the amount of credits they receive, offsetting their electricity consumption.

Equitable Distribution: The distribution of credits can be based on predetermined allocation methods, such as pro-rata based on the individual consumer's contribution to the solar installation or other fair distribution criteria.

This arrangement allows all members of the housing society to benefit from the shared solar generation, promoting clean energy adoption and cost savings for everyone involved.

Can we install the 500kW project and distribute solar power to residents on Housing society per house 5kW:

Yes, it is possible to install a 500 kW solar project on a housing society and distribute solar power to individual residents in the form of 5 kW solar systems per house. This approach is known as "group net metering" or "virtual net metering" and allows a collective solar installation to benefit multiple consumers within the housing society.

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Here's how it could be implemented:

500 kW Solar Project: The housing society installs a central solar power system with a capacity of 500 kW. This could involve solar panels installed on rooftops, carports, or available open spaces within the housing society.

Net Metering Application: The housing society applies for a net metering connection with the local DISCOM to connect the 500 kW solar project to the grid.

Credit Allocation: The DISCOM tracks the surplus solar energy generated by the 500 kW solar project. Instead of crediting the surplus energy to the housing society's account, the credits are virtually allocated or divided among individual residents based on their respective 5 kW solar systems.

Distribution of Credits: Each resident receives credits in proportion to the solar energy generated by their 5 kW solar system. These credits offset the residents' electricity consumption from the grid, effectively reducing their electricity bills.

Equitable Distribution: The distribution of credits can be based on predetermined allocation methods, such as pro-rata based on each resident's contribution to the total solar generation or other fair distribution criteria.

Is we have to take clearance for extended height of Solar Mounting structure installation for housing societies?

Yes, in many jurisdictions, you may need to obtain clearance or approvals for the extended height of the solar mounting structure installation, especially if it exceeds the standard height limits set by local building codes or regulations. The height restrictions are often in place for safety, structural integrity, and aesthetic reasons.

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When installing a solar mounting structure, such as a solar panel mounting rack or support system, it's essential to adhere to the following steps to ensure compliance:

Check Local Building Codes: Review the local building codes, zoning regulations, and guidelines set by your municipality or relevant authorities. These regulations often specify the maximum allowable height for structures, including solar panel mounting systems.

Obtain Necessary Permits: If the height of the solar mounting structure exceeds the standard limits, you may need to apply for specific permits or clearances. The type of permit required will depend on the local regulations and the scale of the solar installation.

Structural Engineering Evaluation: It's essential to have a structural engineer assess the design and load-bearing capacity of the extended mounting structure to ensure it can safely support the solar panels.

Safety Considerations: The extended height should not pose any safety risks to people or neighbouring properties. Adequate measures must be taken to mitigate any potential hazards.

Environmental Impact: Consider any environmental impact that the extended height might have, such as shading on adjacent properties or ecological concerns.

Consult with Local Authorities: Engage in discussions with the local building department or planning commission to understand their requirements and seek approval for the extended height.

Is housing Societies solar Projects is really beneficial financially:

Housing society solar projects can be financially beneficial under the right conditions. The financial benefits of such projects depend on various factors, including the initial investment, solar system size, available incentives, electricity consumption patterns, local solar irradiation, and prevailing electricity rates. Here are some key factors that can make housing society solar projects financially advantageous:

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Reduced Electricity Bills: Solar power generated by the housing society's solar project can offset a significant portion of the electricity consumption from the grid. This can result in lower electricity bills, especially if the solar power generated is sufficient to cover a significant portion of the society's energy needs.

Government Incentives: Many countries and regions offer financial incentives, subsidies, or tax credits to promote solar energy adoption. These incentives can significantly reduce the upfront costs of installing the solar project, making it more financially attractive.

Net Metering: In regions with net metering policies, excess solar energy generated by the housing society's solar project can be exported to the grid, and the housing society earns credits for this surplus energy. These credits can further reduce the electricity bills.

Long-Term Savings: Solar projects have a long lifespan, typically ranging from 25 to 30 years. Over this period, the housing society can save a considerable amount on electricity costs, which can offset the initial investment and yield substantial savings in the long run.

Hedge against Electricity Price Volatility: By generating their own solar power, housing societies can reduce their dependence on grid electricity and hedge against future electricity price increases, which can provide stability in energy costs.

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