Now no tension about electricity bill and gas cylinder! Install solar water heater on the roof, you will get 24 hours free hot water and government subsidy Solar Water Heater Subsidy India


With the arrival of winter season, the use of geysers and water heaters increases rapidly in most of the houses, due to which the monthly electricity bill suddenly jumps by two to three times. On the other hand, using LPG gas geysers comes with the financial burden of quickly draining the cylinder and the safety risk of gas leakage if there is no ventilation in the bathroom. The safest, sustainable and environment-friendly solution to both these problems is—Solar Water Heating System. By installing a solar water heater on your rooftop, you can not only get boiling hot water 24 hours a day without any electricity or gas charges throughout the year, but you can also take direct advantage of the attractive subsidies and rebates offered by the central and state governments.

Solar water heater directly heats water by using solar thermal energy from the sun. It does not require photovoltaic (PV) power generation, rather it works on the ‘Thermosyphon Principle’:

  • Solar Collectors (Tubes/Panels): Special glass tubes or copper panels installed on the roof absorb the sun’s rays and convert them into heat and heat the water flowing inside them to 60°C to 85°C.

  • Insulated Storage Tank: The hot water rises and is stored in a highly insulated stainless steel (SS) or inner-glass lined tank. Due to the puff (PUF) insulation in this tank, the water remains hot throughout the night and even the next day for 24 to 48 hours continuously.

  • Backup for cloudy days: For days with dense fog or persistent rain, it is equipped with an optional electric backup heating element (1.5 kW to 2 kW), which is switched on only when needed.

There are mainly two types of solar water heaters available in the market:

Various financial incentives are provided by the Ministry of New and Renewable Energy (MNRE) and various state renewable energy development agencies (like HAREDA, MEDA, UPNEDA etc.) to promote solar water heaters:

  • State Level Capital Subsidy: In many states, domestic consumers are given a one-time subsidy of ₹ 4,000 to ₹ 10,000 directly into their bank account on systems of 100 liter to 500 liter capacity, depending on the capacity.

  • Monthly Rebate on Electricity Bill: Electricity distribution corporations (DISCOMs) of many states are charging domestic consumers installing solar water heaters on their monthly electricity bills per 100 liters of capacity. Monthly Rebate of ₹100 to ₹300 provide. This discount continues to be available in the electricity bill for the entire life of the system.

  • Property tax exemption: Some municipal corporations also offer an additional annual rebate of 5% to 10% in house tax/property tax for houses installed with solar water heaters.

  • Small family of 3 to 4 members: A system of 100 to 150 liters per day (LPD) capacity is sufficient.

  • Medium family of 5 to 7 members: A solar heater of 200 to 250 liters per day (LPD) capacity is suitable.

  • Large Joint Family/Villa: 300 to 500 LPD capacity is required.

  • Average starting cost: The estimated price of 100 to 200 liter ETC solar water heater including all fittings and taxes is approx. ₹22,000 to ₹38,000 Occurs between.

  • Annual electricity savings: A typical 2 kW electric geyser consumes 150 to 200 units of electricity in a month when running for 3 to 4 hours daily in winter. By installing a solar heater, you save about ₹ 8,000 to ₹ 15,000 in net electricity annually.

  • Payback Period: Combined with the savings in electricity and LPG, the entire cost of the solar heater is recovered in just 2 to 3 years, followed by free hot water for the next 15 to 18 years.

  • Availability of sunlight: Choose an open place on the terrace where there is direct sunlight for at least 5 to 6 hours a day and there is no shadow of any tree or high wall.

  • Water Tank Height: The level of the overhead cold water tank should be at least 4 to 6 feet above the storage tank of the solar heater so that natural water pressure is maintained through gravity.

  • Trusted Brands and Warranty: Always buy products from BIS/MNRE certified companies and ensure at least 5 to 7 years of tank warranty.