Top 5 Reasons Behind People Aren't Installing Solar Panels in India?

Residential rooftop solar makes more economic sense for locations not connected to the grid but if power tariffs go high, a rooftop solar system will be the only viable and intelligent option available for residential consumers. Prices continue to decline while efficiency continues to improve over time. Rooftop solar prices have reached grid parity status with most states in India. But still, people are not installing solar panels at the desired pace in India.


There are five main reasons behind it:

#1. No Free space

rooftop space

What makes rooftop solar particularly lucrative is the fact that they do not require the expensive real estate to be specifically pledged for them which is in sharp contrast to ground-mounted solar. Rooftop solar can be safely installed at the terraces of homes and other commercial buildings, where the roofs are hardly used. A typical 1 kW rooftop solar system occupies 10 square feet are. However, many customers do not want their rooftop space to be occupied by solar panels.

#2. Expensive


Solar system is expensive than buying an AC, TV, Refrigerator, Fan, etc. There are two major costs involved in installing a solar system – installation and maintenance cost. Installing a rooftop solar system is a long term investment and hence proper prudence and vigilance must be exercised before making the commitment. Cost is an important consideration before installing a rooftop system in your house. The cost for a typical 1 kW rooftop system is roughly around Rs.60,000 to 80,000.

#3. Subsidy


There is no clarity about the solar subsidy amount and process. Theoretically, you can claim a capital subsidy of 30% on the cost.

#4. Use of Battery

inverter battery

Solar Panels cannot work without a battery as they generate power in the day and the excess needs to be stored. Energy storage is still quite expensive.

#5. EMI Plan

emi plan

Solar panels are not available on EMI Plan. However, Bank Financing for rooftop solar is available in India. All Public Sector Banks are directed to provide loans for grid-connected rooftop solar systems. These loans will be under the category of Home loans/ Home Improvement Loans.


What are the solutions for the above challenges of the rooftop solar system in India?


wall mounted

Loom Solar introduces Wall Mounted Structure that will install RCC (Reinforced Cement Concrete) Wall. A wall-mounted solar installation is not very common in the residential segment in India. But Loom Solar has made it possible and its products can be customized to match customers’ required specifications. It can be installed on any wall area that receives ample amount of sunlight and can save some extra space on a customer’s rooftop. 


use of solar panel and charge controller

If you already have an inverter battery, you have to just install the solar panels (1-2), charge controller, panel stand and dc wire, etc. If we talk about price about these complete systems, then its price is Rs. 22,500 to Rs. 35,000. In this investment, your home will be a solar home. Its pricing depends on inverter battery capacity. 



There is no clarity about the subsidy amount. Customers are not clear about their eligibility and the amount of subsidy that they can get. Getting a solar subsidy is also a very complex process. Out of 100 customers, only five customers can get the subsidy amount. 


The subsidy is only available to residential customers and not commercial or industrial customers. A solar subsidy is only available on a grid-connected solar system. Subsidy Amount – Up to 3kW – 40% Subsidy, 4kW to 10kW – 20% Subsidy & More than 10kW – No subsidy.


For more information about solar subsidies, you can read here.


ac module

A solar panel is the only power generating component in the solar system. But, when we want to use this grid power unavailability. We know that electricity available approx... 92% locations of India.  Loom Solar introduces AC Module that works without Inverter Battery. Inverter Battery Power has limited power. That means 1 kW inverter can run maximum 900W loads. But grid-connected power has infinite power and we can run multiple appliances on it.


    For more information about AC Module, you can read here and you can watch many videos on YouTube.


    emi plan

    Solar System is an expensive product, and most people do not want to make a one-time investment. We cannot buy the solar systems on installments just like a house or car or motorcycle.


      For more information about EMI Plan on Solar Panels, you can read here.


      Rooftop solar makes complete sense financially. The electricity tariff is still high in India in the residential segment as well. Installing a rooftop solar system is a viable option because a 1 kW rooftop system can roughly generate about 1500-1600 units of power annually and you can thus recover your money in 5-6 years’ time.


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