industrialization and cost-effectiveness required for modern PV systems, subsequently
allowing for early applications in the space race (e.g., the 470 W Nimbus space project
in 1964) and large-scale terrestrial projects, such as a 3.5 kW system set up by NASA
LeRC in 1978 for water pumping and household power in an American Indian
reservation.Modern System Architecture ComparisonModern PV systems are
categorized by their grid interaction capabilities, each presenting distinct trade-offs in
complexity, cost, and functionality: * Grid-Tied (On-Grid) Systems: These are the most
common and cost-effective for urban and suburban environments, utilizing net
metering to export excess energy back to the utility grid. Typical international costs
range between $8,000 and $26,000 before federal incentives. In the United States,
utilizing the 30% federal Residential Clean Energy Credit can significantly reduce the
net cost; for example, a 6 kW system might cost around $10,500 to $12,600 after the
credit. * Hybrid Systems: These integrate batteries and smart inverters, providing both
grid connection and backup power during outages. The addition of storage increases
complexity and cost, with typical expenses ranging from $15,000 to $35,000,
depending heavily on the required battery size. * Off-Grid Systems: These systems are
entirely independent of the utility grid, requiring large battery banks, backup
generators, and extensive wiring, making them the most expensive solution. Costs can
range from $25,000 to $67,000 internationally.2.2. Policy and Subsidy Mechanisms in
the Indian Residential MarketIndia's strategy for achieving its ambitious renewable
energy target of 24,000 MW by 2030 is heavily reliant on policy instruments designed
to accelerate residential adoption. The primary vehicle for this expansion is the PM
Surya Ghar: Muft Bijli Yojana, which strategically replaced and subsumed the earlier
Grid Connected Rooftop Solar Phase II Programme. The financial continuity is
maintained by initially drawing Central Financial Assistance (CFA) disbursements from
the Phase II budget, which carried an outlay of Rs 11,814 crores.The policy employs a
highly structured, tiered subsidy model intended to achieve both widespread volume
and equitable access, making solar power highly attractive across various consumption
levels.Central Financial Assistance (CFA) StructureThe subsidy is calculated based on
system size, emphasizing proportional support for smaller installations: * Systems up to
2 kW: The beneficiary receives ₹30,000 per kW. A 2 kW system thus qualifies for a
₹60,000 subsidy. * 3 kW System: This size receives a fixed subsidy amount of ₹78,000.
* Systems between 3 kW and 10 kW: These systems receive the fixed ₹78,000 for the
first 3 kW, plus an additional ₹18,000 for every kilowatt installed above the 3 kW
threshold. For instance, a maximum 10 kW residential system could receive a total
subsidy of ₹204,000 (₹78,000 + (7 kW \times ₹18,000)).This differentiated structure
ensures that while mid-to-large systems receive significant absolute assistance, the
smallest systems—which cater to households with lower consumption profiles—receive
the highest proportional support relative to the total capital cost. This strategic subsidy