Hi guys, I had been to my friend's farm house last week. He brief me about an excellent scheme of Gujarat government for dealing with electricity availability and enrich electricity boards and eliminate losses caused to electricity boards due to subsidies. Gujarat government gives 24X7 electricity to houses and 8 hour 3 phase electricity to farming sectors. Recently Gujarat government has come up with an excellent scheme of providing farmers better access to electricity and make them rich and simultaneously reduce the losses caused to electricity boards due to subsidised electricity and increase farmer,s income. The scheme is like this. 1) Gujarat government will allow every farmer to install solar panel in their farm up to 12 KVA. 2) Farmers can get this panel installed from any of the government approved solar panel dealer who gives 25 years of warranty to farmers. 3) Government will give subsidy of 35% to farmers on this panels. Government can get this money back from GST and commision received from solar panel dealers or may have to subsidises it a bit. out of remaining 65% amount, it ill be a loan of 60% through the bank and farmer will invest only 5% of the total amount which shall be about Rs 20000 only out of 360000 cost. 4) 12 KW panel generates about 4 to 7 KW power every day per KW panel. Take an average of 5 KW power per day per KW panel installed. So 12 KVA power panel shall generate 60 KVA (KW) per day 1800 KVA power farmer loaded into grid. 5) Now this power will be loaded into government electricity grid. What ever farmer has consumed during the month shall be reduced out these 1800 KVA power. So what government giving subsidy of about Rs 4 per KVA is gone now. No power is subsidised. So government saved the subsidy given to the farmers. Say a farmer consumes 500 KW during the month, power subsidy of rs 2000 per shall be saved. 6) The net surplus power shall be paid at the tariff rate given to power companies. Suppose power companies are paid Rs 5 per KW, than farmer shall be paid Rs 6500 (1800 KVA less 500 KVA assumed consumption ) X Rs 5= 6500. This amount shall be used by government for repayment of bank loan. So no risk repayment of loan. Here government saved 500X4= Rs 2000 subsidy per farmer. 7) Once the bank loan is repaid, Government will pay the amount of surplus electricity produced over consumption to farmer. i.e farmer will get RS 6500 per month towards the electricity produced from solar power produced by his solar panel. More over farmer may straight away use his own electricity when the power is not available and run the pumps. Any losses such as drying of crop because of non availability of power etc shall also be eliminated. This is an excellent win win model of getting richer together.